Overlay the 'Tube, Dude!
YouTube recently launched a call-to-action overlay ad, which is exactly what it sounds like: a semi-transparent ad that appears over videos, and—get this—enables advertisers to send users to any website they wish. Now, that's a sweet ride!
You might be, like, "Didn't that feature already exist?" But the crazy thing is, no, it didn't, not on YouTube. Prior to the CTA overlay, an enterprising advertiser who wanted to guide people to more information—about the video or anything else—needed to put the link in the info section, on the right-hand side of the video, where people didn't really ever look, anyway.
But now, your YouTube ad can be viewed front-and-center. Awesome!
A few caveats: you can place these overlays only on videos within YouTube's CPC (cost-per-click) Promoted Videos program, which limits the amount of traffic actually leaving the site. Also, you have to be signed on as an AdWords client to take advantage of the offer.

Not to say it's not worthwhile. The program was in beta testing with select brands and charities for a limited time, and at least one—charity:water—claims it raised $10,000 in one day as a result of the video overlay with a link to its Web destination. Not bad.
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Comments
These YouTube overlays have all the charm of the popup about the camera. I have encountered on YT videos and I HATE them! I think marketers need to find a different solution, you'll just antagonize people by interfering with their video viewing experience
The wider application of this technology should be explored, although it's no new at all. The ability to overlay video content on any website has tremendous value for the website sponsor and the marketing department. From a PR perspective this technology allows a high degree of responsiveness to change especially to organizations with high profile. This type of video technology has proved its value to the discerning marketers on sites with click through rate increases of 4-600% if Live Person on Web is to be believed. Liveambassador.co.nz has created a number of control mechanisms for the technology to ad further value.
The reason it works so well is that it is not a traditional media as such - the fact that this technology is chromeless (not in a box) takes it out of the realm of an ad - from a video perspective it creates a more personal interaction with the viewer having the perception that this is a one to one interaction.
Of course you are always going to get those who think that any type of marketing media is an intrusion on their web experience... that is until of course the intrusion is the solution to their right now problem.
Don: Hogwash. I think you need to visit Jakob Nielsen's site at www.useit.com and read a few of his research results.