YouTube trials semi-transparent ads

YouTube users were happy with overlay ads as long as the content remained free

YouTube has launched a new advertising system which shows semi-transparent ads over videos for a few seconds at the beginning of each clip.

The Google owned video sharing site settled on the new InVideo system after trialling a number of new ad platforms and formats.

Users have the option of clicking on the ad to view the full content, which was taken up by a surprising 90 per cent of users participating in trials.

YouTube relies solely on advertising to make money, and has been searching for a way to maximise income from this revenue stream without it being too invasive and driving users away.

Eileen Naughton, director of media platforms at Google, claimed that the trials showed that users were "between five and 10 times more likely to click through to the full ad than with traditional online formats such as banner advertising".

She added that Google had looked at many different options to expand and adapt its advertising methods and that the InVideo platform was the most well received.

A Google survey suggested that 73 per cent of users did not mind the overlay format as long as the content remained free.

Around 50 advertisers have signed up to the new delivery system so far, which will initially be restricted to key Google sponsors and professional or approved content providers.