Google Inc.'s move to introduce ads to YouTube videos means the internet search giant is one step closer to introducing its own advertising-supported mobile phone, analysts say.
Google Wednesday announced it was attaching semi-transparent "overlay" advertisements to the bottom of selected YouTube videos, which are designed to be relevant to the user's interests yet unobtrusive when viewed. The ads take up a small portion of the videoscreen and disappear after a few seconds if not clicked on.
Analysts say the company has been experimenting with a similar model on mobiles, whereby the customer would get a discounted or even free monthly phone service that would be paid for by advertisers. The missing piece of the model, however, has been the challenge of putting those ads on the phone without them getting in the user's way.
The move with YouTube, which Google bought in 2006 for $1.6 billion US, is proof that it can be done, analysts say. Phone screens could be used to subtly display ads that are viewed while dialing.
"It showcases the fact that you can do ads that are unobtrusive in at least one format with video. It very well could be that you could use a derivative of this to handle cellphones," says California-based technology consultant Rob Enderle. "It does look like Google is getting closer to bringing out that property."
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Google Wednesday announced it was attaching semi-transparent "overlay" advertisements to the bottom of selected YouTube videos, which are designed to be relevant to the user's interests yet unobtrusive when viewed. The ads take up a small portion of the videoscreen and disappear after a few seconds if not clicked on.
Analysts say the company has been experimenting with a similar model on mobiles, whereby the customer would get a discounted or even free monthly phone service that would be paid for by advertisers. The missing piece of the model, however, has been the challenge of putting those ads on the phone without them getting in the user's way.
The move with YouTube, which Google bought in 2006 for $1.6 billion US, is proof that it can be done, analysts say. Phone screens could be used to subtly display ads that are viewed while dialing.
"It showcases the fact that you can do ads that are unobtrusive in at least one format with video. It very well could be that you could use a derivative of this to handle cellphones," says California-based technology consultant Rob Enderle. "It does look like Google is getting closer to bringing out that property."
Discuss Add this link to... Bury
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