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Friday, March 30, 2007
AOL is expanding its role in NBC Universal's and News Corp's upcoming online video venture -- "NewTube." In addition to being one of the major authorized distributors of NewTube's content (television programming from the two major networks), AOL's online advertising unit -- Advertising.com -- is now expected to become the exclusive distributor of advertising for the venture. This mean's that Advertising.com's ads will be served both on the upcoming "NewTube" video site, as well as on all other authorized sites featuring the venture's content (which include MSN and Yahoo!). Advertising.com, among other things, can insert targeted ads directly into video clips -- think of video "bumper" ads both prior to and following each relevant video. You can see this type of consumer/user experience play out, for example, in Yahoo Music's music videos -- these are free to view by the consumer, but the viewer must first sit through a 15-30 second video ad at the beginning.