YouTube Monetization: Let Users Sell Ads
Partner Program not working out? NewTeeVee reports that YouTube will begin allowing content creators to sell their own ads, with the Google-owned video property taking a cut. The YouTube Partner Program, which gives top producers on the site a slice of ad revenue, opened to all last December. Now, at least one major content creator -- Revision3 -- is already handling some of their own ad inventory on YouTube, according to Advertising Age, and the plan is apparently to extend that option to other top producers.
In April, Google CEO Eric Schmidt promised new ways to monetize YouTube. "We believe the best products are coming out this year," he said. "And they're new products. They're not announced. They're not just putting in-line ads in the things that people are trying." Is letting users sell their own ad inventory the first of those new advertising products?
Monetizing YouTube, which dominates the online video space more completely than Google dominates search, has become a main priority for Google this year. Estimates on YouTube's revenues for 2008 range from $70 million to $200 million. Even on the high end that's just 1% of Google's yearly revenue.
Earlier this year, Google launched a free viewer analytics program for YouTube content creators, which should be helpful in selling their own inventory.
When Google launched video ads last August, we predicted that "AdSense for Video" was inevitable. "Google can offer two things to advertisers: a huge pre-built distribution network (via YouTube), and sophisticated bidding and campaign tracking tools (via AdSense)," we wrote. "For publishers, Google can offer a sophisticated monetization strategy, and they can also offer hosting (though they need to offer a non-gallery option -- i.e., videos that are hosted by YouTube, but not displayed on YouTube.com)."
The Partner Program was halfway there, and letting content creators sell their own ad inventory is one step closer. The next step would be letting producers manage their own Google handled inventory.
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There are many reasons why Youtube is not successful in its monetization quest:
1. I can't make money out of my videos (not enough video views), but I can distribute random, barely relevant-to-my-content videos of other video producers. I don't use something I can't control.
2. The partner program lets you in if you're a popular channel. I do quality videos for a niche: I'll never be a popular channel, but I make an impact in my niche, and youtube should capitalize on those niche producers instead of supporting mainstream producers only.
3. The player is not professional-looking enough: The still image of the player is blurry and the player is customizable only if you're a developer.
Many disadvantages that made me switch to Revver recently. Youtube is leading only because they score higher in Google's SERPs. In terms of service, they are way far back.
I wish they would open it up to everybody. I'm in such demand that any video that I put on YouTube would be viewed by millions of people.
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The Masked Millionaire
This is going to cause some really serious legal issues. Probably that's why it's not open to everyone.
This is the question for 2.0's future.
How could a company privatize in the long term, the work (even if it is done with the flame of passion) of people without permitting them to earn money (even micro-money)?
The promise of becoming famous is a part of a response... but how long?
S.
Hi, Josh:
As I mentioned in a couple of other spots, we've actually had this available to all creators at Revver for several months now, and it works well for the folks who are able to take advantage of it. In our model, the creators get to keep their half of the revenue split, and also get a commission for selling the ads. It works with our syndication network, as well -- meaning that it's not limited to content displayed only on Revver.com.
Wonder if the take will be similar to Adsense?
It really makes the most sense to the channels with the largest viewers, as it has made sense for bloggers with the largest number of visitors. Small frys will of course make small change, but it will give the false impression that you are reaching a larger demographic with your ads for all those media buyers out there.
Adsense video units which are ads embedded withing adsense pay very little.
As far as advertising revenue goes.... just using youtube as free advertising should be a valuable enough reason as far as users go to use it.
The real question is what will google do with youtube in the future to increase their revenue and how will that effect the users.
producers want to make money? Try product placement within the videos... no technology required, weplace.net is a product placement agency connecting producers to advertisers. the more popular you are the more money you earn, simple as that.... unfortunately.