• The New York Times, Tuesday, May 24, 2011 11:39 AM

The New York Times' Stuart Elliot examines First Watch -- YouTube's latest ad offering, which lets brands buy a pre-roll spot on most people's first view of a YouTube video each day. "If the sponsorship of a commercial on the home page catches computer users when they are going in the YouTube front door, so to speak, First Watch is to intercept them when they are going in the YouTube side door," Elliot explains.

"For instance, if they click on a link to YouTube video that a friend sends, or if they type youtube.com/theonion into their browser rather than youtube.com and then search for videos from The Onion. Advertisers are so happy with the placement opportunity that they're "starting to sell out," Baljeet Singh, senior product manager for video monetization at YouTube, tells Elliot.

The initiative, according to Elliot, represents a sort of second act for pre-roll ads, which YouTube shied away from for years at the behest of finicky consumers. Leaving user-generated videos alone, First Watch ads will only accompany professional content. To date, tests of First Watch have involved Tommy Hilfiger, Hotels.com, the Lifetime cable channel, the Macy's unit of Macy's Inc. and Virgin Mobile.

Read the whole story at The New York Times »