San Francisco: Google Inc., owner of the most popular Internet search engine, is cashing in on the surging popularity of its YouTube video-sharing site.
Nine months after buying YouTube for $1.65 billion (Rs7,508 crore then), Google has started showing ads from companies such as Warner Music Group Corp. and News Corp.’s 20th Century Fox film studio. The promotions appear at the bottom of selected clips, Google said on Tuesday.
Visitors to Google’s sites watched 1.8 billion clips in May, accounting for 22% of videos viewed in the US, according to Reston, Virginia-based researcher ComScore Inc.
“Our reach has become very wide at this point,” Shashi Seth, a YouTube product manager, said. “That certainly is very enticing for both our content partners and marketing partners.” Google CEO Eric Schmidt had said in March that finding a way to sell ads on YouTube was the company’s “big project” for the year.
Google shares rose $8.69 to $506.61 on Tuesday on the Nasdaq. They have climbed 10% this year.
Ads on a select number of YouTube videos will appear on the bottom 20% of the clip 15 seconds into the video, Seth said. After the ad shows up, users can continue watching the video on the rest of the screen, close out of the ad to reclaim the entire screen, or click on the ad and view a video from the advertiser. Ads will be shown on music videos as well as some user-generated content, he added.