Google and Viacom’s MTV Network have announced a new deal that will see video content distributed across Google’s AdSense network in what could be a revolution in web-based video delivery and online advertising.
After a year of planning, the new deal will be the first time that the Google AdSense network offers videos from a major programming provider.
Google AdSense up until recently has been a text based contextual advertising program. Significant research and development has been focused on pushing AdSense into rich media and video based distribution.
Testing under the new deal will start in late August and will offer 100 hours of programming from MTV’s “Laguna Beach: The Real Orange County,” “SpongeBob SquarePants” and MTV’s Video Music Awards.
The deal represents significant opportunities for both companies. Firstly, it helps Google ensure that its core revenue stream is a constantly evolving platform which provides publisher’s a choice of options.
From MTV’s point of view, it’s a great means of increasing their distribution, which not only means more viewers, but much greater reach for their advertisers.
The new video distribution deal will see publishers embed an MTV branded video box directly on their website. The streaming programs will feature ads sold by MTV directly, with revenue shared with Google and AdSense publishers.
Details of the revenue share have not been disclosed at this stage, but should be available following a successful testing period.
With the rapid growth in online video highlighted by the meteoric rise of websites like www.youtube.com, this new exclusive deal could be a wise partnership by these two iconic brands, but the real test will be the adoption by publishers.
Would video advertising represent too much of a distraction on publishers sites, not too mention other issues with web page load times and bandwidth. I guess all will be revealed after the testing phase.