Google has teamed up with several content providers to offer ad-enabled video players for embedding on websites. The players are customizable and display text ads both as banners across the top of the video window and as text across a clip’s bottom. Only YouTube videos appear to have this service, and only a few companies have the use of it as of yet.
What I wonder is whether these new in-video ads will help or hurt YouTube. Users aren’t used to very many ads, and lots of sites display annoying bumper ads before and between clips. Could this be a segue into that market? If Google introduces video bumper ads, YouTube’s business could drop like a rock.