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Video advertising to appear on YouTube

In a move to address investors' concerns, Google has unveiled that a new form of transparent video advertisements will appear on YouTube next year.

Social media site YouTube is to introduce advertising in its video clips for the first time in a bid to justify its hefty purchase price and generate some meaningful revenue.

In the adverts, a semi-transparent animated overlay covering the bottom 20 per cent of a video will appear around 20 seconds after each clip begins and will run for a further 15 seconds. Users can click on the adverts to show the full advertisement or make them disappear.

Google bought the video sharing site for $1.65 billion (832 million) last October and has been under pressure to show a return on the investment. YouTube will be working with advertisers and content providers including 20th Century Fox, Warner Music and BMW. The revenue produced will be shared between YouTube and the broadcaster.

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