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Google Launches Sponsored Ads Model For Youtube - The World’s No.2 Search Engine
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Well the slowdown seems to be a time for Google to build alternative revenue streams so yesterday we broke the story about them working on a new premium ad platform for orkut and today we are blogging about the fact that Google has introduced sponsored ads model (much like google search) into Youtube (http://ads.youtube.com).
Youtube which has overtaken Yahoo and is now the number 2 search engine in the world is now letting advertisers promote their commercial clips alongside the search results of youtube videos. In short a google monetization model for youtube.
The new platform is as of now targetting only users in United States. But I expect this to be rolled out to Indian users soon as Indian content creators are upbeat on the Youtube platform and companies like Rajshri plan to release full length movies on youtube. Even Zoom recently tied up with Youtube for a bollywood hunt contest.
The sponsored ads model for youtube is exactly like google’s sponsored ads on its search engine i.e. a combination of pay per click amount thats bid by the advertiser and whether the ad is relevant enough for users to click on it.
According to US Analyst Sandeep Aggarwal ‘Youtube will generate $180 million to $200 million in revenue this year’. But he expects YouTube’s revenue to double next year to about $400 million.
If you look at it this makes youtube revenue fall into the search revenue pie and not the online video advertising revenue because essentially this product doesn’t have ads on the video per se but instead is using search sponsored ads to promote certain channels and advertiser videos on youtube.
I expect a lot of brand advertisers to look at this product by youtube very closely. Also another set of users could be entertainment content producers who have a pay per download model. Essentially trailers could be uploaded on youtube with the end of the trailer coaxing the user to log on to the pay per download site. This could be very useful for the likes of Rajshri.com to compound their paid downloads via their site for Indian movie content.
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interesting move. wonder why its only tied to You Tube search (maybe in trial phase). why not just integrate into their search engine and instead of showing text links, sponsored results, banners, they can also present relevant sponsored youtube videos that could be launched from the search results page.
I agree with you amit.. I think thats the future of Google search if you as me i.e. integrating web, video, image, social/opensocial, blog, news etc search on one page.
Hi rajiv,
Do you think advertisers(indian) will be willing to pay 1 rupee per see for a 10 second slot in a 10 minute video.Say the videos target college students and they will watch it without batting a eyelid.
Hey Rajiv,
I love youtube. Thanks for the info!
I personally think this is pretty cool. I know that some people have been complaining out ads on youtube. Obviously Google saw potential with it and so the bought it.