Will YouTube Ads Bring Bucks To Google?
August 27, 2007 – 9:10 amIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
That’s what Wall Street has been trying to figure out, ever since Google announced it would be running new video ads on YouTube. The basic consensus seems to be that ads might not generate significant revenue this year, but the numbers should be impressive down the road.
And while online video-ad spending initially will likely come out of Internet ad budgets, the category could get a major boost earlier if advertisers begin shifting even a small fraction of their TV ad budgets into online video ads.
Though Google’s video ad launch has invited a wide range of speculation about how much the new format can bring in, most estimates have been paltry, considering Google’s size.
Much remains to be seen concerning the program, including finding out if advertisers are willing to spend the $20 CPM to have their ads displayed on “user-generated” media. So far estimates range from $120 million in revenue up to $1.2 billion for next year. Google’s share price is probably riding on this news.
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2 Responses to “Will YouTube Ads Bring Bucks To Google?”
I don’t think YouTube will be raking in the money with their current TV copy cat scheme of distracting overlay ads.
I was really disappointed when YouTube didn’t play to their strengths with online video. For instance, they could offer more control on the publishers end of picking where ads should be inserted. Google’s main strength is connecting people with content, so why not offer a pay per click model for related videos like it does for related links on the web. Finally, YouTube could offer more features like higher video quality and downloads to premium publishers that pay an annual fee, similiar to a Pro account from Flickr.
You can read more on these ideas at my blog -> http://www.russellheimlich.com/blog/how-google-can-turn-youtube-into-another-adsense/
By Russell Heimlich on Aug 28, 2007