YouTube has just started auctioning video positions to the highest bidder – Adsense paid search results for video. (tip o’ hat to Marshall K at Read Write Web ) Along with yesterday’s announcement that full length feature films from MGM are to run on YouTube, that’s another dent in broadcast tv’s audiences, and revenues.

There’s already a good selection of brand commercials on YouTube: there’s a high definition service too. If you were running a commercials agency, wouldn’t you put some budget into YouTube? If only as a hedge against falling broadcast audiences – and with the potential to earn larger production fees on long films.

How long before we see broadcast tv being used to trail long ads on YouTube? It’s a technique that’s already been used by advertisers like the Army (who also offered mobile video, iirc). The idea that TV may not be the prime channel, that it’s just feding others, will make some old Madison Avenue & Soho admen rotate in their graves.

The world’s changing, and fast.

Another dent in tv’s advertsing revenues originally appeared on TheCustomer on November 12, 2008.