YouTube has now decided to launch their pre-roll ad service outside the U.S.A. As a first step towards achieving that goal, they have started trialling pre-roll ads on YouTube in the U.K.
These pre-roll ads are run around TV shows and clips on their site.
To begin with they have tied up with their existing partners Channel 4, BBC Worldwide, National Geographic, ITN and Discovery Networks as reported in ‘The Guardian’.
The broadcasters who accept this scheme will be eligible for a revenue sharing partnership with YouTube. In the past these partners were earning revenue only from the display ads and in-video format.
Some advertisers such as Nissan, Renault, Warner Brothers, Match.com and Activision have already tied up with YouTube for this service, and Channel 4 was the first among them to run the pre-roll ads to promote the comedy ‘The Hangover’. The pre-roll ads will be run for 15 to 30 seconds, and will be run on a CPM basis.
According to Suveer Kothari, Head of YouTube U.K. YouTube has been trying to maintain a balance between the demands of their users who want free but entertaining and professional content on the web, against the demands of premium content owners, who obviously want to monetize their content on the one hand, and the demands of their advertisers who want more premium content to showcase their TV creative against on the other hand.
He believes this service will help them to attain that balance.