YouTube to Creators: Sell Your Own Ads

YouTube has a new plan to make money — let the creators do the work. The company will start allowing professional content producers that have their own sales teams start selling their own ads on their YouTube channels, according to Advertising Age.

Creators will be able to sell spots including video overlays and the display ads on the pages surrounding videos. Producers sell the ads, and YouTube takes a cut.

Despite doing the heavy lifting, the good news for creators is that it gives them control over which ads appear with their content and expands the inventory they can offer to a potential sponsor. According to Advertising Age, Revision3 is selling its own ads on YouTube with GoDaddy already on board.

And YouTube gets more than money out of the deal, it gets exposure in the ad agency world, and offers high-profile content creators another reason to join the YouTube family.

YouTube has always had the “how will it make money?” question hanging over it’s head, but as the site continues to pull ahead of the competition the pressure is on to generate revenue on those 4 billion plays a month. Shashi Seth, YouTube’s ex-head of monetization quit earlier this month, and just prior to that Forbes reported that YouTube will pull in $200 million in revenue this year. We were skeptical, estimating it’s actually more around the $70 – 90 million range. But even if those higher figures are correct, that’s just 1 percent of Google’s total revenue.

Disclosure: Revision3 produces The GigaOM Show.

You're subscribed! If you like, you can update your settings


Comments have been disabled for this post