Google and Korea Daum are in talks on YouTube and ad deals partnership. MarketWatch reports: Google Inc. may share YouTube video content and cooperate in online advertising, the Korea Herald reported, citing unidentified industry sources.

Google Chief Executive Eric Schmidt will meet with Daum's President Jong-Hoon Seok during his visit to Korea Tuesday to discuss details on mutual cooperation, the newspaper said. Under a potential contract, Daum would be able to use all video content of Google's YouTube, while the U.S. company will use Daum as a channel for its online advertising, it said.

"Daum is Google's longest-standing partner in Korea, and we are pleased to build on our alliance by connecting Korean Internet users worldwide to a wealth of new content," Google Vice President Sukhinder Singh Cassidy said. "Our investment underscores our recognition of Daum as a leading Korean search portal and valuable strategic asset, whereby together we can offer a credible and viable alternative for Korean advertisers and users," Cassidy added.

Kim Nam-jin, head of Daum's search listing business, said Daum selected Google because the latter promised better conditions than those of Overture Korea. "Although I cannot reveal the specific terms of the deal, Google offered a bigger portion for the keyword ads revenues in comparison to Overture Korea. In addition, we expect the contract with Google will boost sales of our keyword ads. In other words, our profits from keyword ads will increase in two ways -- bigger sales and a bigger share," he said.

Asia Media reports: Contrary to the colorful banner ads that sometimes cause visual distractions, keyword ads are typically all-text ads comprised only of a title and a brief description. When specific keyword phrases are searched by Internet users, for example, the ads may be delivered on the top of regular query results and companies pay when they actually click on the site. The model is called cost-per-click (CPC) and is currently the hot ad feature. Korea's CPC keyword ads market is expected to surpass 500 billion won this year.