A Step Backwards?

Posted: August 22, 2007 in Technology and Business
Everyone knows I’m ever the GOOG fan.
 
They popularized advertising that is:
 
(1)  Immediately trackable
(2)  Performance based (i.e., risk free, or at least the perception of)
 
Exactly the things missing in traditional advertising.  A killer combination.
 
But, is GOOG moving away from what’s made them successful?
 
GOOG just announced that YouTube was going to do small overlay advertising on the bottom of the viewed videos… much better than those annoying 15 second "pre-rolls".
 
But, here’s what really caught my eye:  They’re using a CPM model… even though the overlay mechanism allows for click-thrus.
 
Uh oh:  My spidersense is tingling.  Why in the world would the company that dominates performance-based advertising take a step backwards to an old, outdated model for such an important medium as video?
 
Inquiring minds want to know.
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