NEW YORK, Nov 12 (Reuters) - YouTube, the popular online video sharing site owned by Google, said on Wednesday it will roll out a new sponsored videos format, the latest step in its drive to grow revenues through advertising.
The sponsored videos program is designed to enable video creators, from everyday users to major advertisers, to reach the broadest range of consumers with relevant videos.
The new program works by allowing an advertiser to decide which video they want to promote then choose keywords or search terms to target. Then the advertiser can use automated tools to set daily spending budgets and place bids in an automated online auction, similar to Google's search programs.
When YouTube users search for videos it will display relevant videos alongside the search results which are labeled as 'sponsored videos'. Similar to Google's search marketing programs advertisers pay on a cost-per-click basis.
YouTube hopes to replicate the success of Google's AdWords text ad format by offering relevant but unobtrusive advertising.
Analysts have said it will take YouTube at least two years to start making a meaningful contribution to Google's revenue even as the popular video site rolls out numerous advertising initiatives.
The sponsored videos program is designed to enable video creators, from everyday users to major advertisers, to reach the broadest range of consumers with relevant videos.
The new program works by allowing an advertiser to decide which video they want to promote then choose keywords or search terms to target. Then the advertiser can use automated tools to set daily spending budgets and place bids in an automated online auction, similar to Google's search programs.
When YouTube users search for videos it will display relevant videos alongside the search results which are labeled as 'sponsored videos'. Similar to Google's search marketing programs advertisers pay on a cost-per-click basis.
YouTube hopes to replicate the success of Google's AdWords text ad format by offering relevant but unobtrusive advertising.
Analysts have said it will take YouTube at least two years to start making a meaningful contribution to Google's revenue even as the popular video site rolls out numerous advertising initiatives.
