Late yesterday, YouTube annoucned that it will be launching several new advertising products including “Branded Channels.” I believe Myspace first understood that controlling their social networks and profiting from it will bring not only more revenue from their free service but helping the online community grow. Youtube and The Onion are quickly catching on to this growing trend of profiting from Viral Videos.

The first video launched by YouTube with it’s new form of “participatory video ads” features the Paris Hilton Channel. I almost fell of my chair when I discovered this. On the main page of the site on the right hand side (does YouTube not understand the F-Eye Patern study results of proper ad placement?) of the web site exposed to millions per day.