Vipul’s blog

Google is working on displaying advertisements on YouTube and users can expect it to happen over the next few months. So, YouTube users will soon see advertisements around their online videos.

“We have new ad products that are not pre-roll and post-roll,” Google Chief Executive Eric Schmidt said, referring to ads that show up before and after videos. “We have new approaches. Think of them as ads that are in the context of YouTube. They use the page around YouTube in interesting ways.”

For what it’s worth, Google last year experimented with overlay ads that pop up within the YouTube video player itself for a few seconds. They didn’t go over too well with some viewers.

Google, which bought YouTube in October 2006 for $1.65 billion in stock, makes the vast majority of its money from text ads that show up next to search results, but in particular through its acquisition of DoubleClick, it’s working to improve its business in display ads.