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So it is now official, Youtube has ads on their user submitted content . I read about it in todays San Francisco Chronicle Business Section. Here is the link to the article and comments. Reading the comments! Most people seem not to be very impressed. I am not sure how many explored it but when I viewed a video (and at the moment it is mostly on videos supplied by Youtubes professional partners) it wasn’t as bad as watching something on CNN.com, where you have to watch the whole commercial before you get to the content. The approach being used on Youtube is far less intrusive - but it is still an ad, which many Youtube users will be pissed off about.

In this vein I have to wonder why the ad has to be over the actual video clip in any way at all? Why can’t their be a side bar or the ad pop up below the video? Granted I can just click on the ad and tell it to go away, but my vision is still distracted from my video. What if I wanna spend hours on Youtube, do I have to click on each ad, or wait for it to disappear after a certain amount of time? This, I can guarantee you will become very annoying.

Getting this right is HUGE. Everyone will be watching and it does open up the way for a new video sharing site with “no ads” to come on board and potentially challenge Youtube (this is a long shot at this time though). For me, there are two types of ads that drive me nuts - the pop up (arrrggghhhh), or the over screen that you have to click to get rid of (granted Youtube’s version is a little softer). You see if they get this right, and users don’t rebel there is plenty of money. In the SF Chronicle article it was noted that $775 million was spent on online video advertising this year an 89% increase of 06, and that the number is expected to jump to $4.3 billion by 2011. That is huge and taping into that market is something everyone will try and figure out.

So, we will wait and see what happens.

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