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YouTube to Employ Overlay Ads

YouTube LogoCNN reported yesterday that YouTube plans to roll out semi-unobstrusive overlay ads for the first ten seconds of videos, in the bottom section of videos.

If a user opts to click on the overlay ad, the video they are watching automatically pauses and they are taken to the advertisement.

YouTube has stated that they plan to do a revenue split with the video owners, but they have not said how much the split will be.

THE GOOD - possible revenue stream
THE BAD - probably still pretty obtrusive
THE UGLY - No more streaming youtube videos on myspace, as myspace doesn’t allow videos which incorporate commercial gain for the owner. Revver.com anyone?

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