A new Adwords Ad Extension is imminent – expanding videos with sponsored links. Just as location search and product extensions function via a plus box, the video extensions will also open via an expanding plus box and the advertiser is charged the same CPC as the text ad but only once the user has watched the video for 10 secs.
The applications of this are endless but because there is a charge for interaction it is highly likely that money can and will be wasted on this – e.g. for companies for which users may not necessarily be interested in a video. Also, users may click on a video and leave it running whilst they scroll down the search results page. It will also not be useful for services, e.g. insurers.
It will be useful for some advertisers – e.g. video advertisements/video demonstrations/trailers, however they will be charged the CPC for the video. Potentially, the a click through will then double the cost.
Video must not be sound-reliant as not all users will have the volume on/be able to listen when they are searching (e.g. at work). Rather the call-to-action should be in both the visual image and the audio.