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Online Video Advertising: Banners May Not Work

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Description: We spoke with Internet superstar Charlene Li of Forrester Research. She's been thinking a lot about the model of advertising surrounding online video; she predicts it will take many forms. Charlene says that YouTube's business model will inevitably become advertiser based, and she sees contests and sponsorships as a very promising area for the start-up. She thinks banner ads are not a particularly successful format for sites like YouTube, as people are watching videos, not the banners. She is keen on the success of the Diet Coke/Mentos viral video ad. That's an example of adding short advertisement to the end of a clip, known as a post roll. See this video on Beet.TV: http://www.beet.tv/2006/08/online_video_ad.html
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