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Music Labels in Video Ad Deal with Google

Posted in Advertising, Music | Posted on 01-26-2007 | 188 views

Google is getting ready for a re-entry into video advertising. It’s taking its first steps by joining hands with some of the biggest names in the video industry. Google AdSense ads can now display music clips from Warner Music Group and Sony BMG Music Entertainment.

During the next four weeks, Google will allow users to use AdSense in their websites and choose from a selected playlist of songs to play in their web site. These music videos will be accompanied with advertising.

Distributing video clips with AdSense is not new to Google. In August 2006, Google distributed clips of music videos and shows in partnership with MTV in the AdSense of targeted web sites. This time, Google is playing it big by partnering with the likes of Warner Music Group and Sony BMG Music Entertainment. Also, these music clips will be offered as playlists which the publishers can play on their website. Apart from Sony and Warner music group, there are many other small publishers who are partnering Google in this project. The revenues from the ads will be split between Google, the publisher and the music company. Although Google refused to disclose the exact amount of the split, it disclosed that the ads will be billed on a cost-per-thousand-impressions model.

Whatever the revenue sharing method of Google, this new move from the search engine giant will certainly change the way music videos are marketed online. Instead of the customers going to specific places such as the media company’s website, music videos will now be available all over the Internet. Content owners (music companies) can choose the sites where the music video ads are displayed and extend their reach on the internet.

By Raju Shanbhag

TMCnet Contributing Editor