Remember when Google purchased YouTube for 1.65 billion dollars?  At the time, that seemed like a lot of money to spend for a free video service, but the potential for YouTube to generate income has always been there.  

Well, that time is finally here for Google to begin integrating their advertising into their videos, and the New York Times has all the details.  Google’s goal is to integrate their advertising program into the videos in an unobtrusive manner while keeping users in full control of what they are seeing.  Here is the plan:

The ads, which appear 15 seconds after a user begins watching a video clip, take the form of an overlay on the bottom fifth of the screen, not unlike the tickers that display headlines during television news programs.

A user can ignore the overlay, which will disappear after about 10 seconds, or close it. But if the user clicks on it, the video they were watching will stop and a video ad will begin playing. Once the ad is over, or if a user clicks on a box to close it, the original video will resume playing from the point where it was stopped.

It looks like, at this time, they are only placing these advertisements on video clips from the 1,000+ companies that have licensed their videos with YouTube.  This means that, for now, people that upload their “home movies” to YouTube will not notice a difference.  The advertising will be similar to the “bottom line” we see on channels such as CNN or ESPN.  

In my opinion, there is a lot of good news that comes out of this announcement.   First of all, users are not required to view any advertising, they only have the option to by clicking on the advertising to stop the video.   This also opens up a lot of opportunites for the people that upload these videos to YouTube, as YouTube is currently splitting all generated revenue between themselves and the video creator.   This could allow home movies to generate income, as well as encourage more companies to place their content on YouTube as an additional source of income.   

For those of you that spend a lot of time on YouTube, will this method of advertising bother you?