Youtube offering PPC ads. Now Number 2 Search Engine Also!
YouTube plans to sell search-based ads a la Google - Los Angeles Times
At its headquarters here Wednesday, YouTube officially unveiled its latest effort: an auction-based advertising system, similar to the one Google pioneered, that promotes sponsored video clips alongside regular search-engine results on the website. The move tries to take advantage of YouTube's new status as the No. 2 Web search provider. It recently passed Yahoo and now trails only its corporate parent, Google, in terms of searches conducted. |
Research firm EMarketer Inc. estimates that U.S. advertisers will spend $5.8 billion on video ads in 2013, up from $505 million this year. Investment bank Piper Jaffray found that the number of videos with ads on YouTube is already increasing and that YouTube appears to be suffering less from the economy-related ad slowdown than others. Investment bank Collins Stewart predicts YouTube's revenue will double next year to about $400 million. "If you can engage people with sight, sound and motion, they are more likely to remember your message," said Shishir Mehrotra, YouTube's director of advertising. Some analysts questioned why it took YouTube so long to try the formula that made Google so profitable. Liu said YouTube took care and time in developing a search product geared to YouTube users, who are more interested in browsing than searching. |
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