Watching YouTube

By | December 12, 2007

Something to watch is YouTube/Google’s experiment sharing ad revenue with partners who produce videos that they upload to YouTube. These videos, the ones with over one million views, earn the partner several thousand dollars per month. Link.

PerezHilton is a great example of an individual brand doing it. He’s getting paid because of the ad (for Ask.com when I went there) that’s playing next to his video.

YouTube, like Videoegg, is also overlaying ads on top of videos. The beauty of that is that communites/blogs/apps can play the video locally because the ad travels with the video, for their own audience.

The combination of placing these videos in context (think dog videos on Dogster or fashion videos on Glam) in front of a local audience, with higher quality ads, which overlay ads tend to be, the views (and click-throughs) could be very, very significant and partners could generate a real revenue stream, which can not be said for text-based ads.

Partners will be devoted. Advertisers will flock.