Google uses AdWords model to profit from YouTube

Nov 13, 2008 | Uncategorized

Google is bringing in a variation of its AdWords model to YouTube in an effort to raise revenues from the leading online video site, writes The Financial Times. The new YouTube Sponsored Video service will allow YouTube users to promote their videos in a special sponsored video section. Users can then bid on keywords to […]

Google is bringing in a variation of its AdWords model to YouTube in an effort to raise revenues from the leading online video site, writes The Financial Times. The new YouTube Sponsored Video service will allow YouTube users to promote their videos in a special sponsored video section. Users can then bid on keywords to promote their sponsored videos, paying for them on a cost-per-click basis. The service has no minimum spending requirement and users can specify a daily budget. If the service takes off Google can look forward to a whole new search-based profit stream: recent figures from comScore found that YouTube received more search queries in September than any other website other than Google and Yahoo!.
YouTube is also going to start offering ad-supported full-length feature films. The site has announced a new deal with studio Metro-Goldwyn-Mayer (MGM), which will see a number of branded content channels offering free-to-watch films and TV shows including “Bulletproof Monk” and “The Magnificent Seven”. The news follows the deal announced with CBS reported in last month’s Digital Intelligence.
From The Financial Times: http://www.ft.com, 13/11/2008
YouTube: http://www.youtube.com

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