The YouTube manual is unhappy that independent analysts are trying to evaluate their business, publish calculations about the number of visitors, number of views, revenues and expenses of the site, based on the prices of hosting and traffic. Today, whoever you ask for Habré, everyone knows that YouTube only pays a
million dollars a day for its traffic (you can see other interesting statistics via this link).
We all know that the service is terribly unprofitable, while it hosts a low-quality amateur video, and it’s never possible to monetize such content. These are the well-known myths about YouTube. However, the management of the service decided to “put things in order” and
debunk these myths . We translate almost literally the message in their official blog, providing it, however, with
comments by independent analysts.
Myth 1. On YouTube, only short amateur videos.We have thousands of partners providing premium content. The site has thousands of full-length
feature films . At the world premiere of "Princess of Nebraska" the film was watched by 165,000 visitors of the site in the first 48 hours, this is the
15th largest viewing in the world , if you use the standard Hollywood technique in terms of the number of viewers in cinemas.
Comment. I wonder what percentage of “professional content” on YouTube? Hardly more than 1%. Under the link, which they cite as an example, we see 12 videos, seven of them are trailers, not full-length films.')
Myth 2. YouTube videos are grainy and low quality.Just eight months ago, we launched the
HD video section, and today we already have more HD videos than on any other website on the Internet. Hundreds of thousands of HD videos are uploaded to us every month, and tens of millions of views are recorded every day. In one of the blogs, we even deserved the title of the
best HD video service in the entire web.
No one doubts, most of the poor quality videos are not YouTube’s fault, the authors themselves simply do not know how to shoot or use poor cameras in cell phones. However, the problems of the YouTube Flash Player, which loads content too slowly and slows down, are well known. The quality of this player has not changed at all for the better in three years since Google bought YouTube.Myth 3. Traffic, hosting and growing popularity bring serious losses to the owners of the service.How much we pay for traffic - nobody knows. Independent analysts take from these figures from the head. But in fact, our entire infrastructure is made by ourselves, so standard cost estimates are not applicable to us at all. And the growth of popularity brings us profit, not loss.
There is nothing to even comment on. It is clear that no one knows the exact numbers, everyone has different sources of information and different assessment models. Google could easily put an end to these conversations, if it simply took and announced how much it actually pays for traffic. But no.Myth 4. Advertisers are scared of YouTube.More than 70% of the list of the 100 largest US advertisers were posted on YouTube in 2008. They bought our homepage, promo videos, banner ads and video sequences into the content. Many created corporate channels on YouTube and organized contests for users, inviting them to publish an amateur video on a given topic. We even had an exclusive ad that was not posted anywhere else. As you can see, the possibilities of the sea. Advertisers simply want more control over advertising, and we solve this problem by developing additional tools for managing advertising campaigns on YouTube.
Without information about the amount of contracts, a figure of 70% is meaningless. In addition, YouTube will not be able to monetize due to banners. They will have to find a viable model of monetization of the videos themselves, but there is no such model yet. Again, we are not told what percentage of advertising is received from “video inserts”, but how many are from banners. It is clear that selling the first page can be expensive, but it will never pay back the huge expenses of the portal.Myth 5. YouTube monetizes only 3-5% of the site.This figure is taken from our own statistics, and very old and unreliable. In fact, you need to take into account not the percentage of monetization, but the absolute number of ad views. Now we are helping partners generate hundreds of millions of ad views every week in the US (and billions in the world), and this is more than content views from any other video service on the Internet. Monetized views have more than tripled over the past year.
And here it is, the moment of truth. The main curse of YouTube is the impossibility of making a profit. However, they hint that the percentage of monetized views has increased. However, they still hide all the numbers. If the service did not work at a loss, they would have said so directly. But it is clear that they cannot say this.The percentage of monetization shows what the ratio is between viewing an advertisement and viewing a regular video. If last year the service monthly shipped 5 billion videos with a monetization percentage of 3-5%, then it provided about 250 million advertising impressions per month. Now this figure is several times higher.
According to experts AdAge, the monetization of YouTube in the US has now grown to 8.7%. The number of video viewing equals
6.8 billion per month . You can find yourself.