YouTube Monetization: More to Come

Wednesday, December 3rd, 2008 by Jordan McCollum

YouTube Monetization: More to Come

Cue the theme music from Jaws. First it was the InVideo ad layovers, then it was AdSense-monetized video players. Then the real genius began, with Click-to-Buy and Sponsored Videos. But it’s still coming. More monetization from YouTube!

YouTube’s Director of Content Partnerships, Jordan Hoffner, laid out their further plans for monetization and encouraged professional content providers and advertisers alike to turn to the site during his keynote at the OnScreen Media Summit Tuesday.

First, as if to combat the rumors he knew his address would generate that YouTube’s shying away from UGC, he highlighted a video of a skateboarding cat. No, really. Why, you ask? He pointed out that lots of advertisers are afraid of the cat—or rather, afraid of advertising on user-created videos on the site. However, he points out:

[The cat] is your friend, because the cat on the skateboard is what gets you your traffic. The trick is, how do you get the premium content in front of the audiences watching the UGC?

Hoffner had some ideas for that one, too, and not just VideoID, YouTube’s fingerprinting technology that allows content owners to control and even advertise on their content—whether they posted it or it’s been pirated by another user.

He also cited the example of a Monty Python DVD set that was languishing in Amazon’s rankings (in the five-digit range). The comedy troupe posted clips from the set on YouTube with a click-to-buy style referral to Amazon—and a week later, the set was #5 in Amazon’s rankings.

So despite how Hoffner began, his ultimate conclusion was that

“YouTube is a great place for premium content,” was the “bold idea” Hoffner presented during his keynote. “But we need to do a better job of creating areas where the user can go and know what they are going to get.”

I’ll definitely agree that as YouTube brings in more premium content, their site structure will need to adapt. Will their monetization efforts require a radical change, too? What do you think?

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15 comments on “YouTube Monetization: More to Come”

Online-Marketer Says:

December 3rd, 2008 at 6:39 pm

i think it will probably require a radical change. i suppose in case of that issue comes to real, youtube will be ready for it.
as a addition, thanks for the article. it really is informing…

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Ted Murphy Says:

December 3rd, 2008 at 6:58 pm

That Monty Python stat is an excellent metric. Those guys may find themselves in an HBS case study soon — like next week.
Matt Helphrey Says:

December 3rd, 2008 at 10:47 pm

Of course. Those types of sites are changing so much it is inevitable that their monetization will change right along with it.

Matt Helphrey’s last blog post..Creating a Sales Funnel for your Online Business
iphone Says:

December 4th, 2008 at 7:55 am

I like the cat discussion
Patrick Says:

December 4th, 2008 at 8:17 am

I hope that these changes don’t affect the usability of youtube. So far, the changes that they have made have little affect on the use of youtube. If they decide to start adding too much premium content or too many ads, people could be swayed away from using it.

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Nicole Price Says:

December 4th, 2008 at 8:40 am

Could not agree more. Hope they are listening.

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Donald Rush Says:

December 4th, 2008 at 8:54 am

Great post. I’m not sure where I heard it but I thought that Youtube was not making any money of the site. That they are loosing money. I am sure this is away to make the site profitable. While youtube is great. If they don’t start making some money their generous hosting of so much video may stop. Have you heard the same thing? Or am I way off?
Building Links Back Links Website Seo Nashville Online Brand | Rush Design Blog Says:

December 4th, 2008 at 8:58 am

[...] Youtube Monetization: More to come This post talks about the success businesses have using youtube. Every business should have at least one video on youtube regardless of how boring. Because if you ever upset the wrong person you may find an angry customer video slandering your good name with nothing up to say otherwise. It has happened to clients of mine. [...]
Ken @ Money From Home Blog Says:

December 4th, 2008 at 12:14 pm

YouTube is really doing some amazing things. Very interesting ways of monetizing the site and their content. Or should I say Google is doing a great job.
PS3 Says:

December 4th, 2008 at 4:57 pm

If YouTube can get rid of the sub-prime content at the same time, then it would certainly be on to a winner !
George Nobles Says:

December 5th, 2008 at 7:06 am

This is really a good news for us.
Viktor D. Huliganov Says:

December 5th, 2008 at 2:01 pm

What do you mean, Mr PS3, “get rid of the sub prime content”? What about people like me who spend a long time and put a lot of work into uploading their sub prime content onto YouTube?
Goran Web Design Says:

December 8th, 2008 at 3:17 am

it’s unfortunate… YouTube being a free sharing site is what’s brought it as far as it is, but we might lost YouTube if they don’t find new ways to make money, and monetisation of the site is possibly the only way they’ll pull it off
JT Says:

December 11th, 2008 at 2:19 am

Somehow it’s a bit hard for youtube to making any money. Or let’s say making enough money for the expense.

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thinkflick Says:

December 17th, 2008 at 2:04 am

Youtube is doing great job and definitely making money more than we imagine. It will not lose because of google upper hand

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