The Web Money Machine… Beyond Adwords

Om Malik, Tuesday, October 17, 2006 at 2:31 PM PT Comments (5)

The media industry is in the middle of a massive change, thanks to the ubiquitous presence of broadband everywhere. Fast pipes are enabling niche networks, venture capitalists are investing in new media properties. The online video market resembles an old fashioned bubble, and companies are sprouting up like mushrooms after a fresh monsoon. All of this is predicated on one business model: advertising. Google bet $1.65 billion in chips on YouTube, betting that it can profit from this shift to online video. Their confidence is understandable: Google now accounts for 25% of all online advertising dollars. We have a special report on the future of advertising in this online world.

Rating: 50% Thumbs Up Thumbs Down
Print

5 comments so far

October 17th, 2006
7:14 PM PT
Rick said:

No offense to you Om, but everyone has labeled Google’s purchase of YouTube as a bet or gamble. This is petty cash, better yet, vapor stock $$$. One percent of their market cap on a venture with at least 50% chance of an ROI for the Goog machine is just a bigger iron in the fire.

October 17th, 2006
7:18 PM PT
Rick said:

Sorry, just a bad day for me.

October 17th, 2006
7:27 PM PT
Om Malik said:

Hey I always have one of those - bad days. sorry to hear about that.

specifically to your point, — gamble or just a masterstroke - either way we shall see. of course, i have been wrong so many times before, so might have to eat my words.

October 18th, 2006
4:20 PM PT
broadstuff said:

Online Advertising Revisited…

There is a good series of 3 pieces on GigaOm todat about Online Advertising.

Om Malik notes that:

The media industry is in the middle of a massive change, thanks to the ubiquitous presence of broadband everywhere. Fast pipes are enabling niche ne…

October 18th, 2006
7:32 PM PT
Vijay said:

If you guys are thinking about the google adsense of mobile…check out http://www.admob.com. Our network has over 300M mobile page views per month, over 2X as many as other mobile advertising networks.

We even offer a free mobile advertising campaign. All the details are on the site.

Great posts above!

Leave a Comment

Get the comments RSS feed, instant notification of new comments

Most Comments

10 Reasons Enterprises Aren’t Ready to Trust the Cloud
Stacey Higginbotham, July 1, 44 comments
Inside Microsoft’s Internet Infrastructure & Its Plans For The Future
Om Malik, June 30, 25 comments
Bandwidth Barons Want More Money for Fewer Bytes
Allan Leinwand, July 3, 21 comments
State of U.S. Broadband: Demand Hits Speed Bumps
Om Malik, July 2, 16 comments
The Real Reason Powerset Sold (Out)
Om Malik, July 2, 15 comments

Highest Rated

Bandwidth Barons Want More Money for Fewer Bytes
Allan Leinwand, July 3, 70%
10 of the Biggest Platform Development Mistakes
Marty Abbott and Michael Fisher, June 30, 66%
Inside Microsoft’s Internet Infrastructure & Its Plans For The Future
Om Malik, June 30, 65%
No More AT&T Callvantage?
Om Malik, July 3, 71%
Meebo’s Jen: How to Find Hard-to-Find Talent
Carleen Hawn, July 5, 73%
Close
E-mail It