Generating Revenue off an IMS Aug 22, 2007 15:41:01 GMT -5
Post by Terryfic on Aug 22, 2007 15:41:01 GMT -5
wilycoyote100 said:is a 1-2% click rate on an ad going to attract the big guys?
I think a 1-2% click rate is about average across the board for internet ads - as long as they don't try to trick people into thinking they are content, in which case the click through rate jumps but so does the bounce rate so in the end it doesn't help the advertiser. All other forms of advertising rely on just showing the consumer an image, 1-2% of people clicking to get more information is huge bonus for them.
Without seeing how this works, it is hard to pass judgment on it. There are a LOT of sites waiting in the wings if the general public stops liking YouTube. Based on Google's history I think the ads will be forced to be tasteful and non-distracting (i.e. not constantly flashing) but allowing the advertisers to use animation might make it hard to prevent this. But even with Google's past, I really don't like the idea of ads on top of videos, I'm not sure if this is what they are talking about, but it sounds similar (and looking at E's example) to those ads TV networks overlay shows these days. I hate those and there is no way to say you don't respect the content of this video then my putting something on top of it. I will be surprised if this is not followed soon with a new kind of YouTube account where you can pay a yearly amount to not have the ads play.
I think this might make video sites financially viable, although I don't think they will last themselves, despite their usage growth increased by 120% last year (compare that to social networking sites which grew about 40%) I think they are little more then a spot gap solution before internet and television merge into something of a singular entity. There is also the worrying fact that online video usage is going to out run the physical infrastructure of the internet very soon, and I can't think of many telecom companies willing to beef it up out of their pocket for no gain of their own. But I'm starting to get way off topic.
Anyways, even if this earns money for YT, I can't see it earning very much for the content creators. I think the real money will be product placement like KM is doing. I'm looking forward to the episode where while Kate runs from the Order in her Nikes (which for some reason the camera keeps focusing on ) and in front of that is a YT ad for Adidas.