Comments on: Google, YouTube & the Future of Video Advertising http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/ The Business of Technology Sun, 23 Nov 2008 10:51:42 +0000 http://wordpress.org/?v=MU hourly 1 By: Manish Jaiswal http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-609482 Manish Jaiswal Fri, 12 Oct 2007 18:27:46 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-609482 <p>Great to read Bob's note. (May be too late to comment, but I though I should)</p> <p>However, it is always good to talk about the Headline News and do the post event Analysis, but I really need to know or want to read if there is an authentic data to prove PPC Ads in Google or Video Ads at YouTube is working for SME / SMB segment or a small company.</p> <p>Predicting future of YouTube as great money spinner, is alright, but is it really changing the landscape / revenue potential for any known SME/SMB companies. Honeslty, we spent over 100K on Google (PPC) for InsuranceMall with limited or no success, where as traditional Ads are doing just fine. However, I am fan for SEO or Graphic Ads as they work well and adds to the brand, but PPC, is an absolute No-No.</p> <p>So, may be the future of Google or Youtube is not as strong as what is being predicted here. Indeed, Google is a path-breaking company, because of mosty Free Service, but other than Ad revenues (which I must agree is huge, due to PPC as new phenomenon), they still have to show another lateral working revenue model.</p> <p>Cheers !!!</p> <p>Manish K Jaiswal manish@bonsaiinternational.com http://www.insurancemall.in http://www.manishkjaiswal.com</p> Great to read Bob’s note. (May be too late to comment, but I though I should)

However, it is always good to talk about the Headline News and do the post event Analysis, but I really need to know or want to read if there is an authentic data to prove PPC Ads in Google or Video Ads at YouTube is working for SME / SMB segment or a small company.

Predicting future of YouTube as great money spinner, is alright, but is it really changing the landscape / revenue potential for any known SME/SMB companies. Honeslty, we spent over 100K on Google (PPC) for InsuranceMall with limited or no success, where as traditional Ads are doing just fine. However, I am fan for SEO or Graphic Ads as they work well and adds to the brand, but PPC, is an absolute No-No.

So, may be the future of Google or Youtube is not as strong as what is being predicted here. Indeed, Google is a path-breaking company, because of mosty Free Service, but other than Ad revenues (which I must agree is huge, due to PPC as new phenomenon), they still have to show another lateral working revenue model.

Cheers !!!

Manish K Jaiswal
(manish@bonsaiinternational.com
link)
(link)

]]> By: Manish Jaiswal http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-609481 Manish Jaiswal Fri, 12 Oct 2007 18:27:22 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-609481 <p>Great to read RY's note. (May be too late to comment, but I though I should)</p> <p>However, it is always good to talk about the Headline News and do the post event Analysis, but I really need to know or want to read if there is an authentic data to prove PPC Ads in Google or Video Ads at YouTube is working for SME / SMB segment or a small company.</p> <p>Predicting future of YouTube as great money spinner, is alright, but is it really changing the landscape / revenue potential for any known SME/SMB companies. Honeslty, we spent over 100K on Google (PPC) for InsuranceMall with limited or no success, where as traditional Ads are doing just fine. However, I am fan for SEO or Graphic Ads as they work well and adds to the brand, but PPC, is an absolute No-No.</p> <p>So, may be the future of Google or Youtube is not as strong as what is being predicted here. Indeed, Google is a path-breaking company, because of mosty Free Service, but other than Ad revenues (which I must agree is huge, due to PPC as new phenomenon), they still have to show another lateral working revenue model.</p> <p>Cheers !!!</p> <p>Manish K Jaiswal manish@bonsaiinternational.com http://www.insurancemall.in http://www.manishkjaiswal.com</p> Great to read RY’s note. (May be too late to comment, but I though I should)

However, it is always good to talk about the Headline News and do the post event Analysis, but I really need to know or want to read if there is an authentic data to prove PPC Ads in Google or Video Ads at YouTube is working for SME / SMB segment or a small company.

Predicting future of YouTube as great money spinner, is alright, but is it really changing the landscape / revenue potential for any known SME/SMB companies. Honeslty, we spent over 100K on Google (PPC) for InsuranceMall with limited or no success, where as traditional Ads are doing just fine. However, I am fan for SEO or Graphic Ads as they work well and adds to the brand, but PPC, is an absolute No-No.

So, may be the future of Google or Youtube is not as strong as what is being predicted here. Indeed, Google is a path-breaking company, because of mosty Free Service, but other than Ad revenues (which I must agree is huge, due to PPC as new phenomenon), they still have to show another lateral working revenue model.

Cheers !!!

Manish K Jaiswal
(manish@bonsaiinternational.com
link)
(link)

]]> By: Harry Mower http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70334 Harry Mower Mon, 30 Oct 2006 17:27:57 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70334 <p>Isn't the value of Google's advertising model the fact that it allows SMBs to accurately target ads within the context of things that are relevant to their business? Unlike Text, video is not self describing. You're relying on people to accurately tag the content. Have you ever seen the metadata associated with a UTube video? It's barely relevant to anything let alone what is actually in the video. I think this is ultimately the flaw in the entire Google model. The more they move away from their core-competency of selling ads in a highly accurate search domain the more they will dilute their effectiveness opening up opportunities for other players.</p> Isn’t the value of Google’s advertising model the fact that it allows SMBs to accurately target ads within the context of things that are relevant to their business? Unlike Text, video is not self describing. You’re relying on people to accurately tag the content. Have you ever seen the metadata associated with a UTube video? It’s barely relevant to anything let alone what is actually in the video. I think this is ultimately the flaw in the entire Google model. The more they move away from their core-competency of selling ads in a highly accurate search domain the more they will dilute their effectiveness opening up opportunities for other players.

]]> By: Rahul Pandhe http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70332 Rahul Pandhe Fri, 20 Oct 2006 08:24:10 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70332 <p>The YouTube acquisition is a prime example of Google trying to squeeze their ad-click model for the last dollar. Nothing wrong with that.</p> <p>What I am afraid of is this: Majority of the ad-clicks Google gets, I bet, is during prime business hours. Which means people are supposed to be working at that time. This is all great for static pages with content to read but when you throw in Video in the mix, I would like to see how a boss can justify having his employees watch video at work. The Work-Life-Balance ends at reading news, research, shopping products. With video we are crossing the limits and also pushing the employers networking infrastructure due to bandwidth requirements. I am already seeing many companies prohibiting streaming video from the web. So most of the video viewing will still have to happen during prime TV time, so Google will be competing with the big networks to keep folks on their computer watching amateur video. That brings up a question : are the users popularizing/watching YouTube 24 hours just kids without credit cards?</p> <p>Its interesting where this will all lead to.</p> <p>Thus Google can only pat their ego by YouTube acquisition but it would be unwise for them to bet their future direction entirely on this acquisition. They obviously know better.</p> <p>Keep focusing on ideas that get new dollars to keep the Wallstreet happy and the stock price inflated, everything else is a community service that must happen.</p> The YouTube acquisition is a prime example of Google trying to squeeze their ad-click model for the last dollar. Nothing wrong with that.

What I am afraid of is this:
Majority of the ad-clicks Google gets, I bet, is during prime business hours. Which means people are supposed to be working at that time. This is all great for static pages with content to read but when you throw in Video in the mix, I would like to see how a boss can justify having his employees watch video at work. The Work-Life-Balance ends at reading news, research, shopping products. With video we are crossing the limits and also pushing the employers networking infrastructure due to bandwidth requirements. I am already seeing many companies prohibiting streaming video from the web.
So most of the video viewing will still have to happen during prime TV time, so Google will be competing with the big networks to keep folks on their computer watching amateur video.
That brings up a question : are the users popularizing/watching YouTube 24 hours just kids without credit cards?

Its interesting where this will all lead to.

Thus Google can only pat their ego by YouTube acquisition but it would be unwise for them to bet their future direction entirely on this acquisition. They obviously know better.

Keep focusing on ideas that get new dollars to keep the Wallstreet happy and the stock price inflated, everything else is a community service that must happen.

]]> By: C http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70330 C Thu, 19 Oct 2006 13:02:26 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70330 <p>small business owners are hesitant to try new marketing platforms with which they know little about (I used to be one). TV is one of those. Like the one poster said, you need to PRODUCE a creative ad that will get the attention of these younger viewers. Most bar/restaurant/retail places don't want to go thru the cost and hassle of learning this. They JUST are now starting to get comfortable with the internet, now we're expecting them to quickly migrate over to video?</p> <p>Not gonna happen.</p> small business owners are hesitant to try new marketing platforms with which they know little about (I used to be one). TV is one of those. Like the one poster said, you need to PRODUCE a creative ad that will get the attention of these younger viewers. Most bar/restaurant/retail places don’t want to go thru the cost and hassle of learning this. They JUST are now starting to get comfortable with the internet, now we’re expecting them to quickly migrate over to video?

Not gonna happen.

]]> By: Carlos Granier-Phelps http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70328 Carlos Granier-Phelps Wed, 18 Oct 2006 23:03:09 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70328 <p>Sorry for the typo… on my last comment it should be "I wrote an article about this…" and not "I wrote about an article about this…".</p> Sorry for the typo… on my last comment it should be “I wrote an article about this…” and not “I wrote about an article about this…”.

]]> By: Carlos Granier-Phelps http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70326 Carlos Granier-Phelps Wed, 18 Oct 2006 22:13:44 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70326 <p>Great post. I wrote about an article about this before the actual purchase took place - it's on my blog: http://red66.com/blog/2006/10/why-google-should-buy-youtube/</p> <p>GoogleTube must have the traditional big players really worried. Not only is Google ready to monetize user-generated-content (which the big players can't) but it's also ready to dominate both the online and traditional playgrounds of old media.</p> <p>Google has the technology to store content, play it back, contract and display advertising on it and, most importantly, measure the reach and effectiveness of these ads.</p> Great post. I wrote about an article about this before the actual purchase took place - it’s on my blog: (link)

GoogleTube must have the traditional big players really worried. Not only is Google ready to monetize user-generated-content (which the big players can’t) but it’s also ready to dominate both the online and traditional playgrounds of old media.

Google has the technology to store content, play it back, contract and display advertising on it and, most importantly, measure the reach and effectiveness of these ads.

]]> By: george http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70324 george Wed, 18 Oct 2006 21:09:16 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70324 <p>I think that if they put ads on the videos, users will immediately defect to Yahoo, MySpace or whatever.</p> I think that if they put ads on the videos, users will immediately defect to Yahoo, MySpace or whatever.

]]> By: roys21 http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70322 roys21 Wed, 18 Oct 2006 18:20:09 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70322 <p>Chetan, one possible solution to the issue you raise is the use of stock commercials, similar to what Spotrunner now offers. This model has it's downsides, but has some potential for SMBs that can't afford to produce their own video ads.</p> Chetan, one possible solution to the issue you raise is the use of stock commercials, similar to what Spotrunner now offers. This model has it’s downsides, but has some potential for SMBs that can’t afford to produce their own video ads.

]]> By: Robert Young http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70320 Robert Young Wed, 18 Oct 2006 12:39:17 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70320 <p>Bazily, I have to disagree… I'm confident that most SMBs will find video ads to be a unique messaging vehicle for each to convey their selling propositions.</p> <p>Anonymous, I never agreed with Mark Cuban that only a moron would acquire YouTube. The exact opposite in fact.</p> <p>Sramana, I agree, of course, that Google possesses other comparative advantages… and further agree with the factors you put forth.</p> <p>Dave, Thinking of doing the same myself ;-)</p> <p>Chetan, You raise an excellent point. I firmly believe that the videos produced by SMBs will be self-generated (without professional assistance) in most cases… much like the user-generated videos themselves. Doing so, of course, will keep the costs low and manageable.</p> <p>Thanks for the comments.</p> Bazily,
I have to disagree… I’m confident that most SMBs will find video ads to be a unique messaging vehicle for each to convey their selling propositions.

Anonymous,
I never agreed with Mark Cuban that only a moron would acquire YouTube. The exact opposite in fact.

Sramana,
I agree, of course, that Google possesses other comparative advantages… and further agree with the factors you put forth.

Dave,
Thinking of doing the same myself ;-)

Chetan,
You raise an excellent point. I firmly believe that the videos produced by SMBs will be self-generated (without professional assistance) in most cases… much like the user-generated videos themselves. Doing so, of course, will keep the costs low and manageable.

Thanks for the comments.

]]> By: Chetan http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70319 Chetan Wed, 18 Oct 2006 09:17:44 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70319 <p>Maybe I am the first person who tend to slightly differ from Robs opinion. Google is SMB friendly, well said. For adSense, the ads delivery was mere text which could be coined by anybody. For Video ads, SMBs have to create their own content and should be professionally done to attract viewers or will those Ads be another archive of pirated and mashed up videos ? Can SMBs really afford to spend so much on creating their own ads ?</p> Maybe I am the first person who tend to slightly differ from Robs opinion. Google is SMB friendly, well said. For adSense, the ads delivery was mere text which could be coined by anybody. For Video ads, SMBs have to create their own content and should be professionally done to attract viewers or will those Ads be another archive of pirated and mashed up videos ? Can SMBs really afford to spend so much on creating their own ads ?

]]> By: Dave McClure http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70318 Dave McClure Wed, 18 Oct 2006 07:51:14 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70318 <p>now that's a pretty darn interesting post. great writeup robert.</p> <p>almost makes me want to go long Google again.. at north of $400 / share.</p> <p>(almost ;)</p> now that’s a pretty darn interesting post.
great writeup robert.

almost makes me want to go long Google again.. at north of $400 / share.

(almost ;)

]]> By: Sramana Mitra http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70317 Sramana Mitra Wed, 18 Oct 2006 07:39:44 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70317 <p>Robert, </p> <p>I like your analysis. Is it, however, the SMB edge only that places Google well? Is it also not the fact that they are the only large company with the technical horsepower and financial muscle to develop the video equivalent of Adwords / Adsense? And with YouTube, they have a massively compelling experimentation platform. With enough trial, error, and computer science, this problem, I believe can be solved. But it still remains a difficult problem, and probably, it will remain out of the reach of the rest of the big old media players. Sramana</p> Robert,

I like your analysis. Is it, however, the SMB edge only that places Google well? Is it also not the fact that they are the only large company with the technical horsepower and financial muscle to develop the video equivalent of Adwords / Adsense? And with YouTube, they have a massively compelling experimentation platform. With enough trial, error, and computer science, this problem, I believe can be solved. But it still remains a difficult problem, and probably, it will remain out of the reach of the rest of the big old media players.
Sramana

]]> By: Anonymous http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70315 Anonymous Wed, 18 Oct 2006 03:23:57 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70315 <p>And you bloggers didn't realize this before they bought YouTube. Everyone was saying how no one should buy YouTube and if anyone does, they are a "moron". Well now you guys are changing your tune and saying how great a deal it was. Saying that it paid for itself because their stock price went up and raised their market value 2 billion.</p> <p>Doesn't make sense to me how you all can do a 180 on the issue especially when you do not have any facts and are only speculating. Not trying to single you out as many other bloggers are saying the same thing.</p> And you bloggers didn’t realize this before they bought YouTube. Everyone was saying how no one should buy YouTube and if anyone does, they are a “moron”. Well now you guys are changing your tune and saying how great a deal it was. Saying that it paid for itself because their stock price went up and raised their market value 2 billion.

Doesn’t make sense to me how you all can do a 180 on the issue especially when you do not have any facts and are only speculating. Not trying to single you out as many other bloggers are saying the same thing.

]]> By: Bazily http://gigaom.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70313 Bazily Tue, 17 Oct 2006 23:26:46 +0000 http://gigaom.wordpress.com/2006/10/17/google-youtube-and-the-future-of-video-advertising/#comment-70313 <p>I don't think video advertising of the concept of YouTube translates to 90% of SMB that are selling CPA services or truck parts (http://www.fleetoil.com) online, like it does with Adwords. </p> <p>That's the reason Google has to be on Madison Ave with the bigger consumer brands that are selling products to the younger demographic. I doubt anyone will ever find their lawyer (unless it's personal injury) on a YouTube ad (right before a car crash video).</p> I don’t think video advertising of the concept of YouTube translates to 90% of SMB that are selling CPA services or truck parts (http://www.fleetoil.com) online, like it does with Adwords.

That’s the reason Google has to be on Madison Ave with the bigger consumer brands that are selling products to the younger demographic. I doubt anyone will ever find their lawyer (unless it’s personal injury) on a YouTube ad (right before a car crash video).

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