Unlike most of my other blog posts, this one will be very brief because I don’t have any other real information beyond what I am about to share with you. That said, I simply couldn’t wait to share the following opportunity.

Google is releasing a new ad extension that allows for videos to display within high performing ads. It is important to note right away that this extension is in limited beta right now so I doubt there are many advertisers using this new feature beyond movie companies and other relevant industries. Below is an example that I just found for the upcoming release of The Losers.

How will Video Extensions work?

Again, I don’t have any information at this time beyond what I’ve found on the Google Ad Innovations website here; however I can take some educated guesses from what I’ve seen in several examples so far.

First off, the video will only run if the user hits the “+” box within the ad. Once the ad has been expanded, the video automatically begins to play. No cost is incurred until the video reaches the 10 second mark. Once a video has reached this point, a cost is incurred based off of the max CPC bid you set for the keywords associated with these ads. If the user decides to visit your website after watching the video, no extra cost is incurred.

All of this brings up several highly relevant questions:

  • Are video extensions similar to site link extensions in that the ad must meet a very high quality threshold and display in the #1 position? In addition, are you only ever going to see video extension when a branded search is conducted?
  • Is there a time limit to the video? The Losers example displayed above had a video length of 2:32 minutes so I doubt there is a very significant limitation in video length.
  • Are there limitations on what types of videos can be used within ads? I can see advertisers basically putting their TV commercials within AdWords ads in the near future and honestly, I don’t blame them. Instead of paying $1 million for a TV commercial, I could pay $2.50 per click instead… as long as the user expands the ad to display the video. In any event, think of the possibilities!

I currently have a request in to our Google representatives for more information concerning video extensions so once I receive more information, I’ll be sure to post a follow-up to this blog post.

This entry was posted on Thursday, April 22, 2010 and is filed under Pay-Per-Click.

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