Will Google In-Video Ads Help or Hurt Web Video?

Google's latest money making scheme involves allowing Web sites to rake in advertising dollars by hosting YouTube "video units" with text ads embedded in them. It's the latest ploy by Google to expand its huge advertising network, AdSense, into the video realm.

Any Web site today is free to host a YouTube video at their site, however, Webmasters don't earn a dime for doing so.

Now with Google's new offering, Web sites can earn money when they post YouTube videos from a select group of Google video partners. Those pre-approved partners will be the only ones permitted to produce video content for Google's AdSense advertising network.

Content will come from existing YouTube contributors such as LonelyGirl 15, and will also include Expert Village (which produces how-to videos), the modeling agency Ford Models, and extreme sports videos from publisher Extreme Elements. Google says the list of video producers will expand.

Google AdSense text ads will be embedded at the bottom of the Google video units and will be related to the Web page and the video's subject matter. The text ads will change at a rate of about 1 every 10 seconds. Earning a cut of the advertising revenue generated by each YouTube video unit will be Google, video producers, and the sites hosting the video.

We'll wait and see what impact this may have on sites that host YouTube videos.

In one scenario, I see video producers would have a monetary incentive to produce the best YouTube videos for Google's video units. Ideally, video producers will strive to produce better videos in hopes of having their videos hosted on as many sites as possible.

In another scenario I could see how these commercialized videos could pander to the Web's lowest common denominator -- shock videos, sexually exploitive videos, and infomercials. I don't think top-tier Web sites would ever be caught dead showing low-class videos. But, then again, Google AdSense ads are sometimes for questionable products and services and show up on some of the Web's most depraved sites.

Google's text-ad supported videos could be great news for people like myself who loath video commercials that so often precede Web videos. However, I'm likely naive to think that text ads would preclude video ads.

Another side affect may be that grassroots viral videos take a little longer to spread. If sites have a greater incentive to post Google AdSense videos over unpolished YouTube videos, they may opt for money over hosting the next Mentos and Diet Coke clip.

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