YouTube meets Pay Per Click Advertising
On October 9 , 2006, Google announced that it planned to pay $1.65 Billion dollars for YouTube.com. One of the primary questions at that time was, why is Google making such a purchase and what are they planning to do with all of that video content. Well, almost exactly one year later, Google is showing one of its reasons for that purchase. Googles Video Units, allows AdSense users to use videos pulled from YouTubes library to serve embedded Ads.
Heres how it works.
Adwords Advertisers use the Google Pay Per click AdWords system to create advertisements. AdSense publishers can log into their AdSense accounts and select video units at which point they’re asked to accept terms and are then asked to create a YouTube account or log in to an existing YouTube account.
At this point you answer a series of questions related to the video player and type of content you would like to target. You are then supplied with code that can be copied and pasted onto the website where you want to promote the Video with Adsense.
My feelings on Video Units are that they could make the YouTube purchase price a steal. Googles stock price recently hit $600 dollars and its earnings beat analyst expectations. YouTube could have as many as 44 Million Videos or more. Thats an awful lot of free content and it just keeps coming in.
Link to this AdSense Video Units
See the video player below, they are also an example of a video that serves AdSense ads:
See the standard videos below, without the ads as the adsense supported videos appear to have some unresolved bugs and wont work in this blog post:

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