MOUNTAIN VIEW, CA — As it continues to mine new advertising models, YouTube said VISA has currently bought out the new “click to buy” ad option on YouTube.
The ad format is an overlay ad that pops up on music videos and gives viewers a chance to buy the track that’s playing.
The VISA/YouTube promotion was first reported on Monday by Greg Sandoval at CNET News.com. (The VISA ad provides branding and a dynamic link, but users are not required to use VISA to purchase downloads.)
Since launch in the fall, YouTube has sold million of tracks through the ad, the company’s spokesperson Chris Dale told Beet.TV in this interview done at Google headquarters.
The company has high hopes the ad format can drive sales for artists and creators. A recent Ipsos survey reported that half of all adults who watched a YouTube music video went on to buy music by that artist.
Also, when Monty Python became a YouTube partner in the fall, the comedy troupe said it saw a 23,000 percent increase in sales of DVDs on Amazon.
“We are an ad-based revenue model,” Dale said. “We share the revenue generated from the advertisements with our content partners and they get the lion’s share.”
In addition, YouTube also offers granular data to advertisers on who’s watching and how audiences are interacting with the content, relying on integration with Google Analytics and Double Click, Dale said.
Other ad formats on the site include banner ads, sponsored and ads sold through Google TV Ads, especially for YouTube’s new “Shows” section. Google TV Ads is the company’s auction-based system for buying and selling TV time used by Echostar and others, now being tested on the video site.
Daisy Whitney, Senor Producer
You can find Daisy's posts for Beet.TV up on the Huffington Post You can follow Daisy on Twitter.
Editor's Note: The scope of the VISA sponsorship was communicated with Daisy. The statement is not mentioned in the video interview. A.P.
Find a related story from the Los Angeles Times on how the music industry is starting to make money with YouTube.
Automated, Unedited Transcription of the Chris Dale Interview Below:
We are an ad based revenue models so. Our. Deals and how we make revenue for the most part on YouTube is really. How we share the revenue generated from the birds on YouTube with our content partners in those partners get the lion's share of that particular revenue.
Now in addition — that we have other tools and analytics that are available to the partner things like YouTube insight which gives you. Really granular data about how. Particular audiences are interacting with your content. And then we also have this button called click to — which also serves as an overlay.
That really contrived dvd sales and connecting YouTube community members to e-commerce destinations like Amazon.com and iTunes — — — — — — A recent survey — in the UK said that. Around 50%. Or more people to watch YouTube videos actually went out and bought a CD well with click the body can imagine that number has developed.
Because it's so much easier just purchased the — the tractor music that you really and. It's. Yeah. You're having you know more frequently nowadays is — cross pollination. Between all the different products — Google's so we're having. More integration with Google analytics where having more immigration — and and double click and that's creating a more. Universal experience across all of these different platforms. I think specifically on YouTube we pride ourselves in is offering advertisers and content creators. A wide variety of options — products to choose from from that perspective.
So we have things that are familiar to everybody like enter display ads. I'm we have things like in video ads which are overly physical on the bottom 20% in the video. On but we also have things like sponsored video. Which works a lot like — it serves up on videos. Basically on the right navigation and people. Pay to get those ads are — it — he has served out on the next to you know regular search results on YouTube. So that's a really powerful. Odd tool and then another.
Thing this is cool TV ads on line which I think is an extremely compelling component of the shuttle's launch. For a lot of advertisers and content creators. What that essentially does is it takes the analytical targeting power out words. And it enables advertisers to essentially. — some boxes. Pick who they want to target specifically and then push those ads from broadcast. Online so on they can get. In front of their eyeballs wherever those titles might even looking at a television or they're looking at their computer.
