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YouTube Dives Into Advertising

YouTube has launched an advertising strategy with online video billboards to give marketers and businesses more than contests and banners to reach consumers.

Branded content channels and "participatory video ads" will allow companies to advertise products and services on the YouTube site.

Warner Bro. Records, unit of Warner Music Group Corp., is the first to use the brand channel to promote Paris Hilton's debut album "Paris" that arrives in stores Tuesday. As of nearly 10:30 a.m. PDT (Aug. 22), Hilton's video had been rated 3,918 times, and commented upon 527 times.

Fox Broadcasting Co.'s "Prison Break," which began its second season this week, sponsors the Paris Hilton Channel. Users can subscribe to the brand channels they like.

The branded content channel is where advertisers can customize their own space on YouTube to attract people with contests and videos. Some channels could operate as television, with advertisers offering programming as a sponsor.

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