YouTube Introduces PPC search-based ads

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San  Bruno, Calif.—Video sharing Web site YouTube is now offering an auction-based advertising system for online videos, similar to the system developed by its corporate parent, Google.

The new program, called YouTube Sponsored Videos, allows advertisers to bid for placement of their videos adjacent to certain keywords, in a self-service Web site modeled after Google's AdWords. The service is available initially only in the United States.

In addition to YouTube advertisers buying keywords as they can on Google, they also can choose the videos they want to promote and their spending limit. The promoted videos are featured on the right-hand side of the YouTube search-results page with a small image and some text. The advertiser is charged when a viewer clicks on the ad.

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