Billion $$ Question: YouTube Ads?

August 22nd, 2007 by Annkur

Ever since Google acquired YouTube i was puzzled as to how they willmake any money out of it? Till recently there were no Ads on the site,which has been the prime revenue fetcher for the big G.

But now after a long debate as to how Google can convert YouTube’simmense popularity in to $$, without affecting user experience seems tobe answered.

Google will show semi-transparent ads that appear as strips across the bottom of videos on YouTube.

YouTube was collecting a bare fraction of video ad spending when Google acquired the startup in November 2006. Throughout the entire year of 2006 YouTube’s revenues totaled $10.6 million – less than what Google paid in licensing fees to a single copyright holder in order to close the deal.

The costs for Google have continued to mount. YouTube currently accounts for about 10 percent of all Internet traffic. According to company officials, it streams 1.9 billion minutes of video a month, a growing expense for Google.

Read the full story here


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