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BizReport : Advertising archives : March 25, 2009

YouTube's large format ads a hit with movie studios

Movies have a way of making everything seem bigger and bolder, and now their ads are going that way, too. YouTube recently experimented with the use of larger masthead ads for studios and networks, and now Lionsgate Pictures is getting in on the action.

by Helen Leggatt

YouTube's new "crosstalk ad units", which are larger than a typical YouTube masthead ad, have proved as big a hit as the movies they're advertising. According to Adam Stewart, Google's industry director for media and entertainment, the ad unit has seen "incredible interaction rates".

However, while he described the units as "high-reach" and "high impact" he declined to divulge any numbers, simply stating "we are encouraged by what we are seeing".

Lionsgate Pictures is the latest studio to dominate YouTube's homepage. It's reported they are spending half a million dollars with YouTube for an ad package that includes "more traditional" advertising along with dominating the homepage by taking up the masthead and right-hand box ad unit.

What also attracts advertisers to YouTube is the amount of traffic it receives. The homepage receives around 30 million views per day, from people looking to find clips and videos to watch online. "People are coming to YouTube specifically for video. I think that gives us an inherent advantage when it comes to working with entertainment advertisers," Stewart said.

Tags: Lionsgate Pictures, masthead, movies, studios, traditional advertising, traffic, video, YouTube

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