Google’s YouTube Revenue Dissapoints
Jul 9th, 2008 by Shaun Carter
I believed when Google announced their purchase of YouTube that they would be able to monetize the video sharing site very well and make considerable amounts of cash, however I was a little too optimistic.
Google is reporting that the income from YouTube is much lower than its initial estimates used when valuing it’s buyout of the company. Revenue on YouTube will total approximately $200 Million this year, despite the site showing over 100,000,000 videos daily back in 2006! I can only imagine what that number is today.
I really thought that Google would place Adsense text or video ads before or after each video clip, however they have decided that advertisers do not like their ads being attached to content they can’t approve.
But wait, that’s exactly what the Adsense content network does to Adwords publishers. Adsense units are simply displayed on sites based upon keywords pulled from the content of the page, so how is that different from targeting ads on YouTube based upon video keywods and descriptions?
This revelation from Google is quite dissapointing and it seems they have found a way to squander a potential goldmine of profitability simply because they can’t figure it out. I highly doubt that users will just stop using the free video uploading service YouTube provides simply because there will be a short ad displayed either before or after a certain percentage of videos when played back.
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Which one is better, before or after google take over?
Well I think from a user standpoint there hasn’t been much change at all. But from an investment standpoint, Google has failed to deliver on its expectations of profitability with regards to YouTube.