Big media companies have always had a love-hate relationship with YouTube. They don’t know whether to sue YouTube for abetting copyright infringement or get in bed with it because it is the biggest Web video game in town. YouTube is trying to convince them that love is better than war by giving them a cut of advertising revenues from their videos that appear on YouTube, regardless of who put them there.
So far, most of the ads have been contextual overlay ads sold and served up by YouTube. Currently very few media partners are able to sell their own ads on YouTube, but industry sources expect that this program will soon be expanded to more big media partners, possibly before the end of the first quarter. YouTube confirms that a few big partners, like CBS, can already sell their own ad inventory on both the videos in their YouTube channels and any videos with their content uploaded by users that is picked up by YouTube’s Content ID system. But this group is very limited. (YouTube wouldn’t comment on future plans).
YouTube has thousands of traditional media partners, in addition to its Partners Program targeted at super users. The option to bring your own ads to YouTube most likely will not be offered to the super users who come in through the Partners Program. However, it will apply to any videos caught by the Content ID system. YouTube’s content screening technology identifies copyrighted audio and video that can be claimed by media partners. Ninety percent of claimed videos are monetized with YouTube ads instead of taken down.
The ability to sell their own ads on YouTube is a big deal for larger media companies, especially those which are already selling Web video ads across their own sites. Media companies with lots of video tend to have large advertising sales teams that are typically able to command better ad rates than what YouTube can get. The prospect of selling ads against all of their videos on YouTube at those higher ad rates has them salivating, even if they have to share the spoils with YouTube.
As for YouTube, content from media partners represents maybe only 4 percent of all videos on the site, but it is where nearly all of its advertising dollars are coming from. Anything to make that part of the pie bigger would have an outsized impact on YouTube’s revenues.
While YouTube is now pulling every lever it can to get advertising revenues flowing, this could turn out to be one of the biggest levers of all.
This is the smartest thing Youtube has ever done when it comes to monetizing it’s platform. Fantastic News!
BestJobsOnline
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The question is…will these revenues make the purchase seem worthwhile. I’m still looking for the business model that makes online video a billion dollar business—not an acquisition.
Still, sounds interesting.
Exactly. Interesting, yes. Highly profitable, eh, I guess we’ll wait and see.
Youtube is by far the biggest use of bandwidth on the Internet today.
Google will soon make more revenue from Youtube then they will from the rest of their sites.
No Google won’t. There is a good chance Youtube will ever even be profitable (at least while it is the top video site). You must be incredibly naive or just plain stupid.
*never
Google and content providers are missing out on billions and billions of dollars of monetization here.
http://kisalt.net/d2
@ wow,
consider having the biggest televison station in the world…
Can I claim the copy written audio and video and get a complimentary cut of the goods?
What’s crazy is only 4 percent of content, as mentioned above, comes from these major media partners… How do you monetize the user generated content besides contextual advertising? And should individuals get a cut of the love who uploaded their content?
YouTube needs to install a premium membership portion of their site that allows serious content producers to distribute their quality content to the world.
The benefits of the end user would be easy one-stop-shop access to quality TV shows, Sports events, Television Channels, and more.
The key is keeping down the monthly cost. I’d gladly pay a buck a month to view the best TV shows, sports events, and more on YouTube. Right now, all the premium content on various network channels is a pain in the a$$ to access because its lives on tens and hundreds of sites.
You’re so smart. You must make a lot of money.
Google is far from pulling every lever it can to get advertising revenues flowing. This especially pisses off independent video producers who are left without a way to monetize putting their creations on the web.
Google needs to activate overlay monetization on all videos by any content creator which activates the ads. And Google needs to activate referral click-to-buy marketing. Use voice recognition to target the overlay ads the best, use video comments, collaborative tagging, collaborative subtitle translation.
I mean comon, Google is the biggest and best web company out there. They’ve got 90% of the online video traffic. How come isn’t Google doing much more to monetize all that? What’s stopping them? Why do they have to roll things out so slowly, do all these closed beta tests. Why can’t Google just launch all of it right now and adjust it udnerway and perhaps remove the non-working parts of it later.
Google and content providers are missing out on billions and billions of dollars of monetization here.
You said yourself. 90% of the video traffic is in their hands on the Internet. If they start monetizing it all at once, everybody would start screaming unfair competition and they will be sued by the US Government just like Microsoft was sued once before. Google does not want to be like Microsoft and most likely that is the reason why they are not rolling out monetization faster.
Shivers!!
They’ll lose their userbase just as easily as they gained it if they start “monetizing” everything.
{seesmic_video:{”url_thumbnail”:{”value”:”http://t.seesmic.com/thumbnail/iCrwZOaBlO_th1.jpg”}”title”:{”value”:” ”}”videoUri”:{”value”:”http://www.seesmic.com/video/WVXFw2NU0X”}}}
The enormous content of YouTube can not be replicated overnight…
This is BIG news. But two big questions remain:
1) Will they allow the media companies TOTAL control – i.e. bring your own flash player, metrics, and ads. Maybe even YouTube doesn’t host it?
2) Would this pave the way for YouTube to morph in a video search engine and bring in videos from sites like Hulu?
Mefeedia has been done this for years (with partnerships with Hulu, ABC, and others) – any video, any site. Over 20,000 sources now with 100s of flash players in a convenient interface, and content owners can bring their own ads.
http://www.mefeedia.com
Seems like YouTube is heading in this direction. Metacafe, DailyMotion, and Veoh already have done this to some extent.
Your Crunchbase listing has YouTube being purchased for $16.5 Billion.
I believe the proper number is $1.65 billion.
But what’s an order of magnitude between friends…
Remember techno nerd kids, $1.65B in STOCK is very very different than $1.65B in cash.
Hey YouTube hating asspuppets, this isjust the first step.
Just wait until Google gives all content creators the option of running their own ads on embeds on their OWN site.
is this really news? youtube partners have been able to sell their own ads on the site for awhile.
only a handful so far. The news is that this program will be expanded more broadly.
Good thing always happens.
Anyone notice in Gmail’s chat system when you link to a YouTube video it now embeds video into your conversation.
Little off topic, but thought it was cool/worth mentioning amongst this YouTube news
Cool! Will try it out ..
Like many sites, they’re doing nearly anything to make ad money these days, so none of this is a surprise really.
hello
Our site, Swyzzle.com, has IMHO one0upped YouTube on this front–we allow the users to choose if, when, and how products appear in their embeddable multimedia shows–that is, if you are a blogger and would like to recommend a product and point to the item for sale, you can do so with our site at no charge. By February we will also be offering user commissions on each and every item sold from their shows. It’s a much better structure than randomly inserting “related” products into a video. I think users will get tired of the incessant ads, which is why we’re trying a different approach.
…And making the shows is a lot of fun
Check it out and let me know what you think!
Sincerely,
Heidi
http://www.swyzzle.com
blog.swyzzle.com
This move won’t just benefit big YouTube partners. Some individual partners already have their own advertisers, either through product placements in their YouTube videos or banner ads on their official sites.
YouTube has been at this for 7 months
http://adage.co...ticle_id=127619
yep like i mentioned above. not sure why this is exclusive news.
Hopefully this would not mean that now Youtube will be clogged with ads. So far Google have done an excellent job in displaying their ads to be relevant and not overly distracting. The real question still remains open: can these ads be traceable and can anybody create them or only the ‘big boys’?
thanks
Do content partners get a better bandwidth? Is there priority on the content delivery for content partners?
very interesting, thanks for your article
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