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Google tests AdWords on Youtube

Google is to try out its Ad Words system on YouTube in a bid to achieve significant revenues for the site it bought in a $1.65bn deal in October 2006.

The YouTube Sponsored Video will allow people posting videos on YouTube to promote them in a sponsored videos section. The poster can then bid on keywords, just as in the Google AdWord system, paying on a cost-per-click basis.

The system is open to anyone who wants to promote their videos, and will be an "easy, effective, democratic and affordable way" of doing so, YouTube wrote on its blog.

There will be no minimum spending requirement and a daily budget can be set.

Many people may think of YouTube as a medium for watching music clips and amusing cat videos However according to ComScore figures it received more search queries than any other website after Google and Yahoo! in September, and so analysts say monetising the search function makes good sense.

With more ad agencies trying to get exposure for their work outside the usual realm of the 30-second break on network television, it could become a popular method of spreading ads without relying on the power of viral marketing.

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