Finally, a possible good YouTube revenue model

When Google acquired YouTube for $1.65 billion just 3 years ago, many argued about the value of this purchase, with YouTube’s high running costs and the lack of any revenue model. And it did fail to stop losses for the past 3 years as well, and all Google got from it was new lawsuits, now that the video service is under the big G umbrella.

Eric Schmidt wasn’t showing any concerns, to the press at least, claiming YouTube monetization is not really a big problem. But when they started their attempt, this is how the YouTube page looked like:

First, most people going to YouTube are mostly interested in watching videos and won’t click non-related ads on the side. Second, this ad popping at the bottom of the video is more than annoying, and people are less likely to click it (intentionally). Not to mention Arabic ad text is unreadable as it’s showing disconnected characters.

But now finally, YouTube is offering YouTube video ads on the side of YouTube search results, thus enabling YouTube publishers to delivery targeted ads and spread the word about their videos. Now as to why people might wanna do that, I bet many would love to have their video spread and are willing to spend few bucks for the sake of it. Others are trying to reach for wider audience to attract attention to their skills through this media.

I hope this really picks up as it will eventually mean better YouTube service, and result in removal of those silly ads showing above the videos we see now. See the video below to familiarize with the service.

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  • MBH

    You know, I don’t understand why they won’t enable ads within the videos themselves. Short ads (5 seconds tops).

    People are tolerating 5-10 minute videos, so buffering 5 extra seconds won’t harm.

    The ad itself doesn’t have to be a video. It can be a still picture shown for 5 seconds.

  • Bashar

    MBH: You know I personally don’t mind it, but I find out other people do. But if their concern is the user, then I wonder how they thought the overlapping ad is more convenient!