Patrick Walker, European head of video partnerships at Google, has revealed that broadcasters and other content producers are working with Google on 30-second "pre-roll" ads meant to appear before a YouTube video is played. The ads will start appearing next year, and revenue will be shared between YouTube and the broadcaster. Walker told delegates at the MipTV conference in Cannes that broadcasters have been enthusiastic about creating the ads, and predicted that 2008 will see "real money coming in" from video advertising.
Meanwhile, Google chief executive Eric Schmidt has called for broadcasters to embrace online advertising rather than rely on the "flat" TV ad model. Speaking at the NAB TV technology show in Las Vegas, Schmidt said that the internet will be as big a revenue "land grab" as television was in the mid-20th century. "Revenues are largely flat in broadcasting and Google"s technology will increase these," he said.