Google Finds Solution to YouTube Profitability With Ads

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Google Finds Solution to YouTube Profitability With Ads

engine

11:42 am on Aug 22, 2007 (gmt 0)

Now Google believes it finally has found the formula to cash in on YouTube’s potential as a magnet for online video advertising and keep its audience loyal at the same time.
The company said late Tuesday that after months of testing various video advertising models, it was ready to introduce a new type of video ad, which it said was unobtrusive and kept users in control of what they saw.
The ads, which appear 15 seconds after a user begins watching a video clip, take the form of an overlay on the bottom fifth of the screen, not unlike the tickers that display headlines during television news programs.

Google Finds Solution to YouTube Profitability With Ads [nytimes.com]

It surprises me it took them this long.

blaze

1:28 pm on Aug 22, 2007 (gmt 0)

"Google would charge advertisers 20$ for every 1000 times the ad was displayed"

Do you think they're referring to the banner the bottom of the video or the ones that actually get clicked? I'd say the former..

This could be amazing money for YouTube movie makers. It could completely revolutionize the world as we know it.

Think about it -- take your $500 camera and go record some newsworthy event, and get a couple million impressions .. you just made yourself 20Gs like that (assuming a 50% rev share).

Ok, maybe it won't be that easy, but still... People can suddenly make money shooting amateur movies.

News gathering will be completely thrown on its head. The world is suddenly about to change, massively.

Maybe I should go buy some google stock...

skweb

1:46 pm on Aug 22, 2007 (gmt 0)

Blaze, G will put these ads only on the licensed content from their partners. That way you can make sure that the content is not "unacceptable" by advertisers. Definitely there are a lot of objectionable videos on YouTube by amateurs and many advertisers may not want to see their ads on these clips, but I wouldn't be surprised that if another company might offer a way to do this with "inappropriate" clips.

pontifex

2:46 pm on Aug 22, 2007 (gmt 0)

There is still the liability issue to solve, if the content turns out to be stolen. But I am sure they solve that over the long run... maybe they will introduce something like "trusted publisher" or a ranking process...

europeforvisitors

3:01 pm on Aug 22, 2007 (gmt 0)

News gathering will be completely thrown on its head. The world is suddenly about to change, massively.
Maybe I should go buy some google stock...

Or some stock in a company that makes video cameras.

Petra Kaiser

3:46 pm on Aug 22, 2007 (gmt 0)

“for fear of alienating its audience”

can cluttering the site with ads be more alienating to the audience than cluttering the site with b o o b s?

jcoronella

3:46 pm on Aug 22, 2007 (gmt 0)

>> News gathering will be completely thrown on its head

News CREATION will suddenly be the norm.

europeforvisitors

4:17 pm on Aug 22, 2007 (gmt 0)

News CREATION will suddenly be the norm.

That and "America's Funniest Home Video"-style clips, which started out being real and were later created on purpose by viewers who wanted to be on the show.

No big deal from an advertiser's point of view, I guess, though a CPM of $20 sounds high for scrolling ads across the bottom of video clips that are viewed by a mass audience.

Quadrille

5:30 pm on Aug 22, 2007 (gmt 0)

News CREATION will suddenly be the norm.

Sadly, not so. Copyright theft will be the norm.

Instead of 45 clones of Charlie The Unicorn, we'll have 45,000 - most losing quality each time as the idiots wrestle with technology and fail.

loner

4:44 am on Aug 23, 2007 (gmt 0)

Think about it -- take your $500 camera and go record some newsworthy event, and get a couple million impressions .. you just made yourself 20Gs like that (assuming a 50% rev share).

Share- that's funny.

jeffgroovy

1:08 pm on Aug 23, 2007 (gmt 0)

Revver.com Metacafe.com and others already have video profit sharing, this one dude kipkay on Metacafe does over 6k a month from his videos since January of this year, he's been rocking and rolling at those figures, with very very little financial investment on his part, only brain power + time + the original cost of his camera. YouTube should move on that idea. I uploaded 3 short mediocre not quite worth watching type videos to revver back in January and I've made a grand total of $6.47 since then, Yippie, now back to work on my domains.

idolw

1:26 pm on Aug 23, 2007 (gmt 0)

Maybe I should go buy some google stock...

considering the fact that they will start charging a commission to all googlebuy merchants starting January 1, 2008 it might be a good move.

balam

11:22 pm on Aug 23, 2007 (gmt 0)

PCWorld: YouTube Fans Threaten to Leave Over Ads [pcworld.com]

YouTube might need to rethink their new InVideo advertising scheme based on initial feedback to the popular video sharing Web site.
Most users responding to a YouTube blog post asking for feedback gave the idea a resounding thumbs down, and one even made a video to share his displeasure.

europeforvisitors

5:59 am on Aug 24, 2007 (gmt 0)

Most users responding to a YouTube blog post asking for feedback gave the idea a resounding thumbs down

Makes sense. YouTube users who don't care aren't likely to respond. (It's like anything else: When a magazine or a newspaper changes its typeface, format, or section titles, who writes letters to the editor? The people who are unhappy. Ditto with Google changes that result in lengthy threads on Webmaster World.)