Posted May 14, 2008 4:07 pm by with 9 comments

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Monday we mentioned that Google was pondering new ways to monetize YouTube videos. And today, Silicon Alley Insider and MediaPost have some details on the new “Buzz Targeting” program, announced yesterday.

The buzz targeting program uses an algorithm (surprise, surprise) to determine which videos are about to go viral. YouTube says that “The algorithm looks at several factors, such as acceleration of views, favorites, and ratings activity, and then allows advertisers to target their ads specifically to these videos on YouTube.”

“Every advertiser hopes that their campaign will to be the next big viral hit online, and they come to YouTube to reach the millions of video viewers who are on the site everyday,” said Rajaraman. “Buzz targeting lets them do both at the same time. They associate their brand with the hottest content of the day, while reaching the most engaged users in our community.”

The approach should allow for greater advertising audiences—and thus, revenues—than the current ad targeting options employed by YouTube.

SAI points out a shortcoming for most of us trying to make money from YouTube: “the only videos YouTube includes in the algorithm are produced by ‘YouTube content partners’–largely professional producers of content from the studios, record labels and TV networks.”

However, on that note, a year ago YouTube began opening up the Content Partners “club” to selected users, and in December, they expanded this further, with open applications for popular UGC content providers in the US and Canada.

Naturally, there will be resistance to this type of advertising, just as there was resistance to YouTube’s overlay InVideo ads. What do you think—is this the wave of the future or is this sure to fail?

  • seo dude

    I don’t quite get it. Sure they have to generate maximum revenue form every video all the time rather than the time when it goes viral. I would also say that the quality of traffic would actually go down as the video goes viral. But yet again, I guess its quantity rather than quality when it comes to viral marketing.

    seo dude’s last blog post..Why affiliate marketing is better than Adsense, PPC marketing.

  • Wolf Nibori

    I certainly think it has a chance to succeed. I understand people being resentful of advertising, but it’s got to happen if they want their favorite media (entertainment OR informative) to flourish. I can handle some advertising so long as it’s not just completely inane and irrelevant. Half the time the ads end up even more entertaining than the show/magazine/etc.

    Wolf Nibori’s last blog post..The Mist (2007) – Theater Review

  • Search Engine Optimization Journal

    This type of advertising my not work that well for advertisers, but time will tell!

    Search Engine Optimization Journal’s last blog post..Search Engine Optimization For Your Whole Site

  • Wii Guy

    Is Google actually making any money from YouTube? The hosting must cost a huge amount and the money they make from advertisers at the moment is never enough to cover it.


    Wii Guy’s last blog post..13 year-old boy involved in high speed car chase

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  • Musashi

    I think that could be a big cash-cow in the future. And google knows this. A small 5-second ad at the beginning of every video. I dont see how they can loose money with this.

  • Youtube downloader

    I think google has a long plan for how to make money from youtube.

  • Zalm

    Great post, thank you for your effort. Google Is a mean money making machine

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