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YouTube AdSense or AdSnore

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[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!

16 Responses to “YouTube AdSense or AdSnore”

  1. Hi
    I know it’s super long time after the original post. But I did try the video ads because on some level it DOES some like a good idea; people love short interesting videos. But what I found was that if Google couldn’t find a matching ad they would just serve up a black screen. So no money there.

    And the reason I wanted that solution to work is because my content matching is SO bad. It’s the search for the fix for that brought me to this site.

  2. 1.I think it is indeed a big deal, YouTube and AdSense combined together is a vast network. Also Google is a “No Evil” company, the program will be further extended to small and mid size artists / publishers, just wait.

    2.AdSense so far is the best available product in the market when it comes to delivering context sensitive ads. AdContext & AdCenter are good for nothing.

    3.The product as a whole lacks Google’s WOW factor, but for sure they are going to monetize it now.

  3. @Sramana – Rhona Mitra on your website is definitely funnier than Adsense putting M&A and VC accountant ads on my blogger blog for digital media(350 plus entries with digital media topics – only input into that “adsense-less” alogrithm is one word in my profile for private equity)- and they keep serving up those useless ads day after day.

    Yup – I have made a whole $7.02 from that “money machine”. My grandkids might get a surprise check for $100 when it hits that limit in a few decades!

  4. Yes, AdSense has the most ridiculous targeting and monetization engine, Om. I don’t know many people other than you, who makes any money off them.

    Now they are advertising “Rhona Mitra” on my site. LOL!


  5. rakshan

    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.

  6. 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.

  7. 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.

  8. 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..!