⬆️ ⬇️

YouTube looking for profit

Every day, visitors to the YouTube site are watching more than 80 million videos. In a month, the server “ships” about 2.4 billion multimedia files. According to independent analysts, YouTube only pays for $ 300,000 to $ 400,000 a month for traffic. The company operates at a loss and gradually spends an investment of $ 11.5 million received from the venture fund Sequoia Capital . What to do next?



About the phenomenon of YouTube say all and sundry. This service for sharing amateur video files is surely one of the most popular Web 2.0 generation sites. Shooting video clips (on a mobile phone, a webcam or a professional camcorder) is now available for almost everyone, and wide access channels to the Web allow you to quickly upload footage to everyone to view. The YouTube site opened a year and a half ago - at the right time, when users just had a need for such a service.



In June 2006, the YouTube audience grew to 19.6 million people, and the founders of the company became real stars: they are even invited to participate in popular talk shows on TV. But the owners of the YouTube service is not enough for its phenomenal popularity. They need a profit that does not exist. It is still unclear what business model YouTube should have. Paid services do not fit into the ideology of the site, the main audience of which are teenagers. Therefore, in the near future, neither a paid subscription, nor retail sales of videos, nor a fee for hosting video materials will appear here. All services will remain free.



Of course, there is another option - to sell your business to a large corporation. In this case, you do not need to look for ways to make a business profitable. But YouTube owners say they are not looking for this option.

')

The only alternative is to display ads. But here, too, you need to be careful not to overdo it. The audience does not have high loyalty, and if possible, users can go to another such site, where there will be no advertising.



Over the past months, YouTube has been experimenting with placing text ads from Yahoo and Google , and last week even graphic banners appeared promoting the new Disney film Pirates of the Caribbean. Dead Man's Chest".



Owners of the service are very careful about the choice of advertising, so as not to annoy users. They say that in no case will they agree to place an advertisement at the beginning or end of each video. “Over time, YouTube will create a new [advertising] model, like Google has created a new model of online advertising,” says Julie Supan, director of marketing for YouTube. Her words make sense. As you know, now becoming increasingly popular this method of advertising as hidden marketing. The YouTube community is ideally suited for the “viral” distribution of videos that may well carry an advertising message. Negotiations on the creation of such "hidden" advertising campaigns are now underway with some large corporations, including with Adidas and Hyundai.



Some film studios have already specially laid out trailers for their latest blockbusters on YouTube. For example, recently the trailer for the movie "Scary Movie 4" hit the list of the most popular videos on the site.

Source: https://habr.com/ru/post/4166/



All Articles