Google should activate overlay Youtube ads now
I don’t think this is difficult for Google to figure out. They should just allow any Youtube publisher to activate overlay advertising on all of their videos.
Google has voice recognition, they have annotations, invideo comments are comming up. They have comments, they should have some more and better usergenerated tagging, ratings and personal recommendations.
From there, while they re-encode all the videos to more and better formats, they can stream out the advertising features as a stream parallel to the video streams, which devices can then overlay on the video in all kinds of different ways.
Really the only perhaps difficulty Google might have with overlay ads, is that it might not be compatible with the current Youtube Flash version standard which is Flash 7.
Once Google activated overlay advertising, video makers are going to be making a living doing this. If you have more then 100 thousand viewers per month on your Youtube videos, you could be making a living doing it. And Google is going to be making billions of dollars each quarter on this. I expect Youtube to become Google’s biggest revenue source pretty soon. There is nothing better on the Internet then video.
I posted this as a comment at http://bits.blogs.nytimes.com/2008/08/06/google-goes-gaudy-with-youtube-ads/#comment-278139