Posted 10/08/08 at 06:15:21 PM by Alex Castle
It’s no secret that YouTube has yet to turn a profit. Despite steadily growing advertising revenue, the massive bandwidth costs required to stream a bazillion videos a day has kept the video giant out of the black. However, the company has announced an ambitious plan to monetize all those page-views by embedding their watch pages with “click-to-buy” links to retailers offering products related to the video.
YouTube is starting small, with iTunes and Amazon links on videos posted by certain record labels and trailers from Electronic Arts, but it plans to “slowly but surely expand the program to additional content and product partners.” They also plan to allow their advertising partners the opportunity to attach retail links to copyright-infringing videos posted by users, as long as they allow the video to remain on the site.
The program will initially only effect viewers in the United States, but if you live elsewhere and feel like you’re not seeing enough advertising in your daily life, don’t worry; YouTube plans to expand to other markets soon.
Links:
[1] http://www.maximumpc.com/user/atcastle
[2] http://www.youtube.com/blog?entry=-y_3IbT8mJU
[3] http://www.maximumpc.com/article/news/lights_camera_commercial_google_rumored_sell_preroll_and_postroll_ads_youtube
[4] http://www.maximumpc.com/article/news/citi_analyst_google_tip_displayadsrevenue_scales_with_youtube_video_ads
[5] http://www.maximumpc.com/article/news/revenue_sharing_deals_new_technology_make_youtube_hollywood_friendly
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