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YouTube Claims Incremental Success On Selling Ads Against Video Views

YouTube may be on track to lose $500 million this year, but the Google-owned video site is at least trying to claim small victories wherever it can get ’em. YouTube told AdAge’s Michael Learmonth that it’s now selling ads against roughly 9 percent of its video views in the U.S., compared to 6 percent a year ago. The secretive video site wouldn’t offer details on the precise rate at which it is selling ads. Shishir Mehrotra, YouTube’s director-product management, did tell AdAge that the company is selling ads against “hundreds of millions of views” every month.

And if that still doesn’t impress, YouTube claims it’s still doing better than nearest competitors, Fox Interactive Media (NYSE: NWS), parent of MySpace and IGN Entertainment, though again, it didn’t offer much in the way of specifics. While Mehrotra credits content partnerships with helping drive the slight rise in ad placements, it’s not just relying on film studio and TV deals to bring in revenue. “Mehrotra: We’re not saying we don’t want them; we’re very proud of our agreement with Disney (NYSE: DIS). But we aren’t hinging our strategy around it. If it’s great for our users, it happens to be good for monetization as well.”

One Response to “YouTube Claims Incremental Success On Selling Ads Against Video Views”

  1. Numbers do not lie, the future of Video online will be a pay for content model as http://www.WeC2.com makes it way on to web this summer. Google will have to create a true business model for You Tube if they want to earn back the investment which now is around 3 billion dollars, 1.6 they paid, 1.5 they have invested in cash to keep it afloat.