Google has been searching for a way to make money from YouTube ever since it bought the company for a cool $1.6 billion in 2006, but it has yet to stumble upon the right formula. So far, it offers quick video ads before and during YouTube videos, as well as text-based search ads alongside YouTube search results. Now, it’s trying yet another way. Google has tailored its popular AdSense program to YouTube via a new auction-based sponsored video program. Maybe this time it will hit pay dirt.
As YouTube’s Matthew Liu wrote in the Official Google Blog announcing the program, the video sponsorship will work much like AdSense:
“Easy-to-use automated tools allow content owners to decide where they’d like their videos to appear, place bids in an automated online auction, and set daily spending budgets. Then, when people search for videos, YouTube will display relevant videos alongside the search results. These videos are clearly labeled as “sponsored videos” and are priced on a cost-per-click basis.”
While the new program is promising, Google continues to hedge its bets by keeping all monetizing options available. As Liu says:
“We do not believe there is one advertising solution for YouTube, but lots of valuable ways for advertisers to engage with our audience. The scale of YouTube Sponsored Videos — with the branding power of InVideo ads, the engagement of our contests, the analytics of YouTube Insight, etc. — should create exciting opportunities for users, partners, and advertisers.”
Let’s hope so. With Google’s stock price falling yesterday below $300 for the first time since 2005, it can use all the revenue help it can get.
