It seems that ad spending is still sluggish even though they had a record quarter but this part seems pretty promising though.
Google also defended its YouTube video service. Critics have pointed out that the company spends an estimated $500 million a year on YouTube, without getting much in return. But company executives said advertising, such as pre-roll ads, were gaining traction and could soon pull the video business out of the red ink and into profits, Google executives said.
I can see those pre-roll ads as quite a lucrative commodity especially when some web videos have millions of hits. It would especially be cool if they can be targeted so that a funny cat running around is preceded by a Friskies ad or something.
I mean Hulu does it and it is not very intrusive at all. The only problem with Hulu is that the ads are exactly the same over and over. Maybe Google can change up the ads so you see a Friskies ad then a PetCo ad then a Purina ad right after it. As long as there is only one ad people won't be too put off by them.
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