Google is still experimenting with ways to make money off of YouTube. So far,
the company has tried text ads, pre-roll ads, and leveraging its Video ID content monitoring to spur more ad buys. Now it's taking a different tack--making YouTube a launching pad for e-commerce. The company announced that it is adding click-to-buy links to several YouTube videos that let users purchase anything from songs to movies to video games. And the move looks far more promising than its previous ad-focused strategies.
Via partnerships with Amazon, Apple's iTunes and Electronic Arts, so far, users can purchase songs or music videos they watch on YouTube by clicking buttons that take them to Amazon.com or Apple's iTunes music store. They can also buy video games, such as EA's Spore, via the Amazon link as well. Both Amazon and iTunes will share revenue with YouTube when users click to buy via the site. The result? YouTube could become a huge e-commerce site. As Google says in its blog announcing the move:
This is just the beginning of building a broad, viable eCommerce platform for users and partners on YouTube. Our vision is to help partners across all industries -- from music, to film, to print, to TV -- offer useful and relevant products to a large, yet targeted audience, and generate additional revenue from their content on YouTube beyond the advertising we serve against their videos.
It makes a lot of sense. Google has been trying to figure out a way to make money from YouTube ever since it bought the site for a cool $1.65 billion in 2006. And now, rather than focusing on ads, Google has hit on a method that fits the instant-gratification aura of the site. You hear about a great new band, go to YouTube, and view their latest music video. Like what you see, and click to buy their CD, or eventually, tickets to their next concert. Google's been waiting a long time to make serious money from YouTube. Maybe this time, it's hit on the right winning formula.
The Google Subnet blog is the official blog of Network World's Google Subnet community. Google Subnet is the independent voice of Google customers and is your gateway to daily Google news, blogs, tips and more. Visit the Google Subnet home page daily.
The Leader in Network Knowledge
Monetizing YouTube... The answer.
To make money with YouTube, this is what Google has to do...
On the most viewed clips (clips with, let say, already 1000 views) (doesn't matter who posted them) YouTube automatically implements a 5 seconds overlay ad that appears over the player and blocks out (darkens) everything else. (It gives a bit of time for the clip to load in the background as well).
This overlay is a 5 seconds spot (can't be longer than that and it doesn't link to a company website if you click on it. It's like a really, really short TV spot. It can be a still picture for outfits with very little budgets...)
Now, people don't like ads... but they like GAMES and they like to COLLECT stuff.
Each overlay ad is a mini 5 seconds GAME. You have three colored dots on the overlay. The viewer clicks on ONE of them. One is a winner, two are duds. If you're lucky to pick the winner (you only have one chance) during the 5 secs, you receive a TOKEN that is automatically added to your YouTube account. (It encourages you to stay registered...)
Now, you COLLECT these tokens. If you win a certain number of similar tokens, you can EXCHANGE them against full-length HD Hollywood Films or TV shows on YouTube. The fun part could be that you have different categorires of tokens. (Some would be for specific film genres or just for one TV show and some could be really hard to find, worth maybe ten tokens, etc.) (Tokens are generated randomly by the system.)
Now, you have the problem of guys posting shows and seeing Google make money off their film. Well, they need to be rewarded too. For a succesful posting (ie lots of viewers) they also receive TOKENS... to be exchanged to watch high-quality HD movies or TV shows.
Now, these HD movies or TV shows in the "HD Theatre section of YouTube" can also be sponsored with a longer lead-in spot... That's even more money for Google.
Now, we have the problem of big brand names not wanting to have their spots stuck on "Jimmy and his weird cat"... Well, they could "control" where their 5 Secs. spots go by teaming with content suppliers through YouTube. Example, a Coca-Cola campaign with Viacom clips... Viacom takes all the succesful shows they own like, for example, "Spongebob". They cut out little "gems" (two to three minute clips) and they post them on YouTube to watch for free... Viacom via Google sell their 5 second spots to Coca-cola. Everybody is happy. The viewer, who enjoys these mini-clips, can even link to the full episode of Spongebob on YouTube. He can pay by redeeming TOKENS or he can pay with real money for the full episode or combine both. (It's all streaming anyway! It's like TV a la carte.)
Now, what about the "Jim and his weird cat" clips. Who pays for these 5 secs ads? Well, it's like Google's Adsense, it's small outfits who purchase so many spots. You can buy a thousand spots or ten thousand spots to be randomly placed on clips or based on the clip's TAGS and on the clip's level of viewership. The outfit supplies the spot or the still and pays Google directly up front.
A system like this is not that difficult to implement. (If they're real smart, they can have it work just the same on imbedded videos on other sites) Anyway, it's fun for all involved and all get something out of it. Everybody is a winner especially Google who makes tons of money from the big guys but also... most importantly...from the long, long tail of all the little guys. Viewers are hooked to YouTube forever! Even if they're just there to click on ads and forget about the clips... the most important is done. Money!
Here, you have it.
Twowan,
(If Google wants more ideas like this one, they can contact me. I'm the guy behind laboratoryfilms.com)