SOURCE: YouTube

August 22, 2006 09:30 ET

YouTube Unveils New Advertising Concepts

New Concepts Encourage Dialogue Between Community and Marketers

Warner Bros. Records, Weinstein Company, Fox Broadcasting Company Sign-on First to Promote New Album, Movies and TV Show

SAN MATEO, CA -- (MARKET WIRE) -- August 22, 2006 -- YouTube, a consumer media company for people to watch and share original videos through a Web experience, today announced new advertising concepts -- Participatory Video Ads (PVA) and Brand Channels -- the first step toward defining a new advertising model for video entertainment on the Internet. These new strategies complement YouTube's current offerings which include banner ads, promotions and sponsorships. With this, the community and marketer can now participate in the advertising experience in a mutually beneficial way.

YouTube's first Brand Channel partner is Warner Bros. Records for Paris Hilton around her debut album, "Paris," released globally today. The Paris Hilton Channel is sponsored by Fox Broadcasting Company's "Prison Break," the second season of which premiered Monday, August 21 (8:00 - 9:00 PM ET/PT). The pop singer has created an original broadcast for the YouTube community taking advantage of the new PVA offering on the YouTube homepage. Weinstein Company, in a campaign created by interactive agency Deep Focus, experienced great success with the first-ever PVA promotion on YouTube for the current feature film "PULSE." Fox Broadcasting Company, working with digital communications agency Organic, Inc., also utilized the new PVA in conjunction with the Paris Hilton sponsorship to promote the Fall Season launch of the hit show "Prison Break."

"Our vision is to build a new advertising platform that both the community and advertisers will embrace. Our announcement today is just the beginning of the many new ad concepts we will be rolling out over the coming year," said Chad Hurley, CEO and Co-Founder of YouTube. "This new medium requires finding a balance between traditional online advertising and new creative approaches that engage consumers in an active way. Advertisers now have a highly targeted opportunity for aligning their brands alongside the entertainment experience people are enjoying on YouTube."

"Paris Hilton and YouTube are both pop culture phenomena. So, it makes sense that Paris is part of this exciting initiative, and be first," said Robin Bechtel, Head of New Media, Warner Bros. Records.

Participatory Video Ads: Encouraging Engagement and Participation

The new Participatory Video Ad is a user-initiated video advertisement with all of the YouTube community features enabled. Consumers can rate, share, comment, embed, and favorite advertising content that they find interesting, informative and entertaining. Rather than interrupt a consumer's experience, we have created a model which encourages engagement and participation.

The YouTube community has been highly receptive of this new advertising experience and has propelled PVA videos to the top of the Most Viewed, Most Discussed and Top Favorite video rankings. Advertisers have the opportunity to participate and moderate discussions around their creative.

Brand Channels: Integrating Brands into the YouTube Community

To help marketers create deeper, more brand-centric video experiences on YouTube, we have created an enhanced environment called a Brand Channel. Brand Channels provide advertisers a place to showcase video content on YouTube with a look and feel that is consistent with their brand imagery. This new concept helps brands connect and engage with their consumers around great video content.

Brand Channels include all standard community functionality helping brands become an organic part of the fabric of YouTube. Key aspects include:

--  Marketers can customize the appearance of their channels through a
    self-service tool.  Access to the exclusive enhanced design and channel
    functionality is free-of charge to advertisers who meet predetermined
    spending levels.
    
--  Included in Brand Channel partnerships are special promotional and
    media opportunities crafted to help engage users with the marketer's
    channels and video content.
    
--  YouTube "Subscriptions" provide brands a persistent way to stay
    connected with consumers who are engaged with their content.  Whenever a
    brand adds new videos to their channel, subscribers are notified, helping
    the brand build an audience.
    
--  Brand Channels include an auto-play video on the main channel page.
    This video allows marketers to provide users with video content immediately
    upon visiting the channel.
    
--  Contest functionality can be added to Brand Channels to allow
    marketers to host contests and encourage users to submit their own user-
    generated. content
    

"Consumers are increasingly programming their own entertainment and content experiences," added Hurley. "We believe it is important to embrace this change and have developed new advertising strategies that will help marketers more effectively connect with consumers."

For inquiries regarding the new Brand Channels and Participatory Video Ads, please email advertising@youtube.com or visit us at http://www.youtube.com/advertise.

About YouTube

Founded in February 2005, YouTube is a consumer media company for people to watch and share original videos worldwide through a Web experience. YouTube allows people to easily upload and share video clips on www.YouTube.com and across the Internet through websites, blogs, and e-mail. The company currently delivers more than 100 million video views every day with 65,000 new videos uploaded daily. With investment support from Sequoia Capital, YouTube has quickly become the leading destination on the Internet for video entertainment.

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