YouTube expands types of advertising

updated 10:32 a.m. ET Aug. 22, 2006

NEW YORK - YouTube Inc., which allows users to watch and share videos online, said Tuesday it is rolling out participatory videos and branded channels as part of new advertising strategies.

The channels and videos allow companies to advertise specific products or services on YouTube’s site. Warner Brothers Records is the first to use the brand channel technique to promote Paris Hilton’s debut album “Paris,” which arrives in stores today. The Paris Hilton Channel is being sponsored by Fox Broadcasting Co.’s “Prison Break,” which started its second season on Monday.

Hilton’s channel includes an original video that appears on the YouTube home page. Above the Hilton video is the participatory “Prison Break” ad, which allows users to see “surveillance footage” videos, blogs and message boards.

The participatory ads must be clicked on by users to be activated and allow individuals to rate, share and comment on the videos.

Users can receive subscriptions from brand channels that they like, which will notify them when new videos are added to the channel.

YouTube’s advertising components also include banner ads, promotions and sponsorships.

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