Google to Pay Agency Commission on Video Ads

04 November 2008

MOUNTAIN VIEW, California: Its cards pressed firmly against its chest, Google has announced its intention to pay agency commission on video advertising – although its lips were zipped as to the percentage and the scheme's starting date.

In classic Googlespeak the firm says it will launch an "incentivization programme" that will demonstrate its commitment in developing video advertising opportunities across its network, including YouTube – an advertising opportunity it claims has yet to be properly understood by publishers and advertisers.

Or in plain English: is failing to hit its sales targets. 

Google will also launch a joint research project with agencies to ascertain how web users are consuming online video. It also plans to develop new ad formats in partnership with clients and ad agencies.

According to a Google spokesman: "We believe that online video specifically is going to be the next stage of evolution in the display marketplace.

Again lapsing into Googlespeak: "We're in a position where we can understand what's happening because … we have a property in YouTube that's fundamental to people's lives now … but we don't yet know how well we can deliver advertising in that space."

Agencies, although short on detail, have hailed Google's move.

Says Richard Gregory of UK search specialist Latitude: "It also shows that [Google is] recognising the need to incentivize agencies that have developed great optimisation skills from paid search and have successfully transferred these to other forms of digital advertising."

Data sourced from; additional content by WARC staff