Google to run video ads

Google Inc. 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 websites that make money running them. Google said it would distribute advertising alongside videos from Sony BMG Music Entertainment and Warner Music Group over its AdSense online ad system to website publishers in a four-week test now underway. The test with the two music labels follows an earlier public trial of Google’s video advertising system with Viacom’s MTV Networks, which provided music videos to run on a select number of websites 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 popularised 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. (Reuters,January 24, 2007)

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