YouTube vows to protect video makers in InVideo ads

IDG News Service - Google Inc. has promised to give content makers control over advertisements overlaid on video clips they post to its YouTube video-sharing Web site.

The company is seeking further feedback on the video advertising service as a rising number of YouTube users threaten to leave the site if the advertising feature is not improved.

Only videos from content creators that have signed up for the advertising scheme, called InVideo, will host ads, leaving the majority of videos on YouTube free of the overlays, a Google spokesman said today. Advertisers will still be able to reach a large audience through YouTube videos even if the company places ads in only a small portion of videos.

"And our users are not shy about telling us what they like and what they don't, so it behooves us to be careful," said Shashi Seth, YouTube group product manager, in an e-mailed statement.

The company launched the InVideo ads on Wednesday. They start as an overlay on the bottom 20% of a video. People can click to watch the advertisement or, if they don't, the ad will simply disappear. Clicking on the overlay pauses the video, which resumes after the ad finishes.

So far, responses to the new advertising system, posted on YouTube's blog, have been negative. People are passionate about the issue, with many threats to leave YouTube for other sites, such as MySpace.com or Break.com.

"As a viewer of videos I don't want to see any of the content of the video covered up. I only had one video posted myself, which I have just removed. Bye!," wrote user KPDover in a comment.

However, analysts said the advertising model could finally provide Google Inc. with a revenue stream from YouTube after it bought the video Web site for $1.65 billion last fall.

As of this morning, the total number of comments had reached 669, with many repeats but still a substantial increase to the 132 comments posted Thursday at around the same time.

YouTube hopes it can change people's minds about InVideo ads and sees them as a way to generate revenue for the site without being too intrusive.

They are designed to interfere as little as possible with viewing and be relevant to the video. Warner Media, part of Time Warner Inc., is one company that has signed up to allow overlays to be used on its music videos, and some of the ads are for other Warner music.

Still, YouTube users complain that 20% is a huge amount of space on the small video screens, enough to detract from the viewing experience.

YouTube plans to continue on with the InVideo overlays and hopes "to make the ads an important part of the advertising model for online video," said Aaron Zamost, from Google corporate communications.