A while back, the popular video sharing website YouTube was beta testing overlay ads for the videos posted on their website. Video advertisements will now be featured on YouTube in the near future. The videos will contain semitransparent advertisements for the users to view and will disappear after 10 seconds if the user does nothing. However, if you click on the semitransparent YouTube advertisement, it will pause the video automatically and go to the advertiser’s website.

Shiva Rajaraman, product manager for YouTube stated, “Internal tests show more than 70 percent of people give up when they see a pre-roll. By contrast, less than 10 percent decide to close an overlay, which they can exit by clicking on an “X” in a corner.”

What’s great about YouTube’s overlay advertisements is that it’s not based on a Pay-Per-Click model such as Google’s popular Adsense program. Advertisers will be charged $20 dollars per thousand impressions – click or no click. This is a great opportunity for YouTube video owners because YouTube stated that they will split revenues with the video owners. There was no comment to how much of the revenue will be split.

[via BusinessReport]

Tags: Business, Online Advertising, Funny Videos, Google, Internet, YouTube, Videos, Video Sharing

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