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Summary:

[qi:004] Google’s (GOOG) new initiative to distribute YouTube videos through their AdSense network, wrapped and nicely packaged inside AdSense ads seems to be such a big deal, but it really is not. In fact, it is not quite smart, and shows that Google is still struggling […]

[qi:004] Google’s (GOOG) new initiative to distribute YouTube videos through their AdSense network, wrapped and nicely packaged inside AdSense ads seems to be such a big deal, but it really is not. In fact, it is not quite smart, and shows that Google is still struggling to figure out how to make money from its YouTube acquisition. And that doesn’t change with this new effort, which in my opinion has four major challenges.


1. Google will share the AdSense $$$s with video creators and web site owners (who place the AdSense-boosted videos on their sites.) Is this going to get video type CPMs or the same pennies you typically see on an AdSense ad-unit? This won’t add up to much if it is the later.

2. The program is limited to some specialized video content creators, as the New York Times points out.

3. The new offering will match content of the video and the website the AdSense units. Given the debatable accuracy of AdSense just in text ads, I am skeptical of this claim.

4. How about website visitors: will they really care of these video AdSense units? Text ads worked because they were less intrusive than the monstrosities that passed for display ads back in the day. Video-enhanced AdSense seems to be a rerun of that story!

  1. since this is such a intricate mix of content and ads (as opposed to adsense, which was purely ads), site owners will need a lot more control over what’s in the content.

    if google is suspect about matching the ads to content (as adsense does), i don’t think it’s a good idea to attempt to match content to content! site owners are very picky about the content, and even mighty google even with all it’s brain-yard probably isn’t quite there to please them just yet.

    it would’ve been nicer if they let the publishers browse the sponsored videos and pick the ones that they wanted to play on their site. i for one would be willing to do it..!

  2. Om:

    I think there are several more challenges with this:

    -Google continues to believe that ultimately the big media companies will accept disintermediation of their business models-not going to happen.

    -Google continues to view publishers as simply raw material for their business models. Publishers will demand control over what content gets shown on their site, and Google will be very slow to provide them with any sort of control. As a result this will see slow adoption by publishers.

  3. Rough Type: Nicholas Carr’s Blog Tuesday, October 9, 2007

    The YouTube-AdSense death toll

    Over at the Techmemeograph, the news that Google is going to going to slap banner ads above some YouTube videos and syndicate them through its AdSense network is being duplicated endlessly. “Here comes the money,” declares Marshall Kirkpatrick. Maybe…

  4. OM – you are on point!

  5. No one is lining up to buy this offering. I hope they aren’t working these sales into any long term sales projections. They might not crack $1000 in stock value if they keep coming out with crap like this.

  6. Agree with your points. I always thought this was the way for Google to monetize YouTube:

    http://www.stockmarketbites.com/2007/10/google-tries-again-with-youtube.html

  7. Apogee Weblog Tuesday, October 9, 2007

    google.com/videounits – AdSense Video Units Launch Glitch

    … seen how they perform for AdWords advertisers. In the meantime, I think Om Malik has some of the most interesting commentary on the launch: YouTube AdSense or Add Snore.

  8. New From Google Labs: Google Big Friggin’ Video Ad | Digital Daily | John Paczkowski | AllThingsD Tuesday, October 9, 2007

    [...] and Google Video in violation of copyright (though Daily Motion apparently has), but it may have finally figured out something far more important: how to advertise on it. This morning, the company announced a new service that allows publishers [...]

  9. YouTube + AdSense makes total sense.
    What you’ve got in YouTube is a cool video delivery infrastructure, and it would work well for one of the largest advertising mediums : TV ads. Imagine tapping into that sort of ad network and making it available over the web. Take that one step ahead and open it up for user-generated ads (for just about anything) and you have a very cool way of distributing rich-media ads (and im not talking flash) over the web.

  10. Google Links YouTube-AdSense With “Video Units”

    At long last Google has taken a major step toward monetizing it’s $1.65 billion YouTube acquisition. The search giant announced this morning the launch of “video units,” a program that allows websites to embed relevant video content from YouTube in…

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