PPCGoogle Looks to Cash in with YouTube Channels, New Circular Ads

Google Looks to Cash in with YouTube Channels, New Circular Ads

Google is looking to celebrity power and regular high quality program to draw big budget advertisers to YouTube. They’re also launching a new advertising format akin to Sunday newspapers, Circulars, to help draw online traffic to offline stores.

Google is reportedly in the final stages of negotiating several deals for original YouTube content with major media outlets and celebrities such as Tony Hawk. The search giant is also testing out new ad formats, one of which is reminiscent of the Sunday newspaper circulars, in an effort to drive both online ad revenue and website visitors into physical stores.

YouTube Tricking Out Video Channels, Hello Tony Hawk?

Google/YouTube will advance over $100 million to partners, who will then split ad revenue sold against the content with the world’s largest video site, “people familiar with the matter” told The Wall Street Journal. By offering free channels with high quality content featuring household names, YouTube will try to draw premium advertisers and their big ad budgets online.

Earlier this year, YouTube went into the movie rental business, with 3,000 full-length offerings on their U.S site and, later, over 1,000 titles on YouTube.ca. Late in August, they also broke the 1 billion views marker with their Promoted Videos program. Now, they’re after a share of the global TV advertising pie, a market expected to reach $221.9 billion by 2015, with online and mobile TV advertising growing substantially from their relatively small bases in 2010 (PwC).

The ad budget may not come from traditional TV budgets, but with digital expected to take over 33 percent of the projected $578 billion global advertising spend by 2015, this is where the money is at. And Google, the proud papa of the biggest video site going, surely knows this and will capitalize on it.

The WSJ speculated on a number of potential YouTube partners (Warner Bros., NewsCorp’s ShineReveille, FremantleMedia Ltd., BermanBraun, Electus, Everyday Health Inc., Iconic Entertainment LLC, DECA, and Verso Entertainment) but no deals have been formally announced. As for Hawk, his side isn’t talking (yet) and had “no comment at this time.”

Google Launching Circulars in a Step Forward for Offline Retailers

Google also launched a new website promoting the different ad formats they’re testing; ads that may incorporate visual, local, and social elements. One third of searches with ads, said Google, show enhanced ad formats.

One of these new and highly visual ad formats is expected to formally roll out today and is designed to help drive traffic to physical stores. Google Circulars are large-format, location and query personalized ads with the option for numerous click-points.

Much like the Sunday circular in a traditional newspaper, these new ads will pop up when a user clicks on a search or display ad. They are desktop, mobile, and tablet compatible.

Every day, there are more than a billion searches on Google, with more than half of those searches coming from outside of the U.S. (Google internal data). Google will formally introduce the new Circulars ad format later this week at an Advertising Week event.

For now, here is a sneak peek at a Circular mockup:



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