“Google Chief Executive Eric Schmidt said in an interview late Thursday that a new killer ad format—which he dubbed “interactive video ads”—is coming. Such ads, which could appear anywhere on a Web page not just inside a video, would allow users to interact with the ads in new and more engaging ways, such as asking users to click on a video to learn more about a product. He said he has encouraged Google’s ad teams to think along those lines, but didn’t comment on any specific plans.”

http://online.wsj.com/article_email/SB10001424052748704075604575357180763918638-lMyQjAxMTAwMDEwNjExNDYyWj.html#ixzz0wlyxBvKs

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With the introduction of Google television I definitely feel that they are using YouTube as a testing ground for interactive video advertisements, and therefore depending upon the response received could be used to a larger extent on Google TV. With statistics from other sites showing that an interactive video is far more successful in creating sales, I think that it is only common sense to say that it will also do well on Google’s video products too.

Reelseo interviewed Jimmy Healey, Senior Manager of E-Commerce for Onlineshoes.com, one of the first companies to actively use online video to advertise their products in 2006. He considers how video has evolved, and how it has adapted how they use it in their advertising, to begin with it was primarily used to increase info on the products on sale on the website, to now actively using interactive video as a major advertising resource.

“I think the greatest insights we’ve gained is, one, just doing it – taking the willingness to make the business decision to actually invest in it.” Says Jimmy. “We didn’t invest heavily at first, but we did do a lot of testing with it. And with testing we found that we made a strong business case for investing considerably more into it.”

http://www.reelseo.com/video-ecommerce-onlineshoes

Though interactive video is still quite new it is definitely set to boom in the online advertising market. As Mr Healey points out, it was perhaps a risk plunging money into this relatively untapped resource, though as shown in the comScore statistics it is definitely going to play off for any advertisers that do so. I think therefore somewhat like what Mr Healey did with Onlineshoes.com using video as a test resource, Google are also doing the same with their interactive video on YouTube, of which I definitely feel will be increasingly effective. What is now especially interesting is to see what Google choose to do with Google TV and online interactive video.