Don't Miss Out On Latest Posts, Suscribe Now

YouTube to Boost Revenue By Selling Ads On Search Pages

Posted by Shuheb | 10:59 | | Comments

Of course, Google founders - Larry Page and Sergey Brin will not missed any money-making opportunities especially from one of their biggest acquistions - YouTube. Google announced on Wednesday, saying that they are selling ad spaces tied to search results on YouTube, trying to boost revenue of the world's largest social video platform.

Using the same concept of Google Search Sponsored Listing, advertisers can bid for keywords related to their videos and the search results will be ranked accordingly to how much an advertiser bids for or how much he or she is willing to pay for a click.

Currently, YouTube earns money from graphical ads, video ads and text ads. The recent deal with CBS and MGM of posting full-length videos has boosted their profits by a few percentage but it seems that it's no enough to cover the $1.65 billion sum which Google paid two years ago to acquire the video site.

"I personally do not believe that the perfect ad product for YouTube has been invented yet," Eric Schmidt, Google's chief executive, said in a conference call with analysts in July.

With the new ad implementation, YouTube will most probably be as successful as what Google has done with its search results sponsored listing.

However, some advertisers might be reluctant to have their messages shown alongside YouTube results for fear of being displayed along some risque or wacky content that could hurt their brands, said Forrester Research anaylst James McQuivey.