A year after paying $1.65 billion for YouTube, Google is moving on the ROI. On Tuesday YouTube unveiled a new form of advertising to expose to its 130 million registered users, who watch more than 3 billion videos a month. YouTube started testing its in-video ad format in June and July on more than 200 videos from 20 content providers, and found that 75% of viewers watched the entire ad. The ads had five to 10 times greater click-through rates than standard display ads that appear on Web sites according to the WSJ.
Here's how it works: Fifteen seconds into a video an ad appears at the bottom of the player window. Viewers can click on the ad while the video they originally chose is paused. If they don't click on the ad, it disappears after 10 seconds.
More here on the YouTube blog.