• August 19, 2008

Google has begun testing display ads on the YouTube mobile site in the U.S. and Japan, according to a post Monday on the search giant's mobile blog.

"This is our first step in testing mobile advertising for YouTube--it will give you a new way to interact with content on the go, while allowing us to learn how video viewers engage with mobile advertising," wrote Christine Tsai, product marketing manager at YouTube. "Our test advertisers will also have an additional branding tool at their disposal and the opportunity to reach the millions of people who visit YouTube every day on their phones."

Google is actively seeking new ways to monetize content on YouTube, which it purchased for $1.6 billion in 2006--but so far has failed to meet ad revenue expectations. It's estimated that will generate $200 million in ad sales this year, according to a recent Wall Street Journal story. The bulk of that amount will come from display rather than video ads.--Mark Walsh