Google is already winning the war for the hearts and minds of advertising decision makers with its YouTube acquisition. In fact Volvo is looking to work more closely with Google as its next car is going to launch with only internet commercials. While Volvo has relationships with other Internet advertising companies they seem to be especially excited about Google’s YouTube acquisition.
One might imagine Google will sell ads you must watch before getting to the content you are looking for but Google said it opposes these "pre-roll" Web ads, which resemble TV commercials.
From my perspective the typical Google ads generate clicks but have little or no branding impact. They are very measurable however. Video ads on the internet cal yield measurability as well as branding which is something Madison Avenue would love.
As Google gets more and more involved in the world of video advertising I expect to see the entire relationship-based advertising buy morph into less of a relationship buy and more of a buy based on results. As a result advertisers will get a better ROI and ad agencies will lose much of their influence.
Read more about Google, YouTube, Volvo and web-based video ads.