Google is planning to carpet YouTube videos with semi-transparent "overlay" advertisements which appear in the bottom fifth of the streaming videos on the site. The adverts expire after a few seconds or can be closed manually.

YouTube cost Google US$1.65billion last October, and some investors have been concerned about profits. However, another key worry for Google is that YouTube's non-commercial persona will be tarnished by advertising. The search engine giant claims that the new ads will keep YouTube users happy whilst appeasing investors as well. Apparently, users are five or ten times more likely to click an overlay ad than a banner, as many internet users develop "banner blindness" and fail to even see flashing, colourful advertisements.

Google marketing representative Eileen Naughton said, " What we have come up with is a user-controlled ad format that is engaging. We want our users to be able to accept and choose what type of advertising they engage in."

At the moment, the advertisements will only be placed on the videos of YouTube content partners. This is to give YouTube users time to "acclimatise" to the new advertising before Google considers using it on user-submitted clips as well. One possible problem is that companies might then find their advertising being displayed on top of content of which they do not approve.