Google to run video ads from BMG, Warner
SAN FRANCISCO (Reuters) - Google Inc. (Nasdaq:GOOG - news) said on Monday it would expand testing of its much-anticipated video advertising system by working with two major music labels to embed video ads on Web sites that make money running them.Google said it would distribute advertising alongside videos from Sony BMG Music Entertainment and Warner Music Group (NYSE:WMG - news) over its AdSense online ad system to Web site publishers in a four-week test now underway.
"Over the past few months, we have run tests to figure out how we work with our partners and advertisers to combine high quality video content with ads and then distribute them (over) the Google AdSense network," Google said in statement.
The test with the two music labels follows an earlier public trial of Google's video advertising system with Viacom's (NYSE:VIA - news) MTV Networks, which provided music videos to run on a select number of Web sites running Google ads.
As part of the test, advertisements would be billed on a cost per thousand impressions (CPM) model, the traditional billing method for mass market advertising as opposed to the pay-per-click billing model Google popularized with text ads.
Google has been pushing ahead in recent months to expand beyond its hugely successful text-advertising system into new advertising formats including video, radio and mobile phones.
As a example, Warner Music has defined multiple video channels along themes like "rock music" or featuring the "Divas of Pop Music." A Web site owner can select a video channel and embed it on a section of the site dedicated to running Google AdSense ads. Visitors then can click to watch ad-supported videos within the video channel on sites running the ads.
The Google advertising system splits the resulting revenue three ways to the video content owner, the Web site publisher and Google. The exact revenue splits were not disclosed.
Mountain View, California-based Google said in a statement on its AdSense customer blog that only a limited number of Web site publishers had been asked to participate.
"Over the next few weeks we'll be testing AdSense video distribution and sponsorship with a small group of publishers," AdSense product manager Christian Oestlien said in his blog post.
Sony BMG is a joint venture of Japan's Sony Corp. (6758.T) and Germany's Bertelsmann (BERT.UL).
Shares of Google fell 1.8 percent to close at $480.84 on Nasdaq.
Eric Auchard
www.reuters.com
"Over the past few months, we have run tests to figure out how we work with our partners and advertisers to combine high quality video content with ads and then distribute them (over) the Google AdSense network," Google said in statement.
The test with the two music labels follows an earlier public trial of Google's video advertising system with Viacom's (NYSE:VIA - news) MTV Networks, which provided music videos to run on a select number of Web sites running Google ads.
As part of the test, advertisements would be billed on a cost per thousand impressions (CPM) model, the traditional billing method for mass market advertising as opposed to the pay-per-click billing model Google popularized with text ads.
Google has been pushing ahead in recent months to expand beyond its hugely successful text-advertising system into new advertising formats including video, radio and mobile phones.
As a example, Warner Music has defined multiple video channels along themes like "rock music" or featuring the "Divas of Pop Music." A Web site owner can select a video channel and embed it on a section of the site dedicated to running Google AdSense ads. Visitors then can click to watch ad-supported videos within the video channel on sites running the ads.
The Google advertising system splits the resulting revenue three ways to the video content owner, the Web site publisher and Google. The exact revenue splits were not disclosed.
Mountain View, California-based Google said in a statement on its AdSense customer blog that only a limited number of Web site publishers had been asked to participate.
"Over the next few weeks we'll be testing AdSense video distribution and sponsorship with a small group of publishers," AdSense product manager Christian Oestlien said in his blog post.
Sony BMG is a joint venture of Japan's Sony Corp. (6758.T) and Germany's Bertelsmann (BERT.UL).
Shares of Google fell 1.8 percent to close at $480.84 on Nasdaq.
Eric Auchard
www.reuters.com
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