It has been around two years since Google paid $1.65bn for buying YouTube, which is the popular video sharing website. Is it that they haven't included online advertising effectively or they have still not found the right idea for making money from it.
Google bought YouTube around two years back. After the whopping $1.65bn deal, Google still not seems to be generating money from this video-sharing site. Google's chairman and chief executive confessed it, besides the fact that hundreds of millions of visitors the website sees every day. It raises a question that, Isn't Google's YouTube seeing the desired share of online advertising pie?
Eric Schmidt said that Google while wants to change the world, it had yet to transform YouTube into a money-spinner. "The goal of the company is not to monetise everything, our goal is to change the world – monetisation is a technology to pay for it," he added.
Recently, there have also been a lot of debate about Google's dominance in Internet and online advertising market. Google boasts of a huge 85 per cent share in search advertising. In addition, it also responsible for around 50 per cent of the UK's total online advertising spend, which encompasses all the three of display, search and classified.
The other major developments like DoubleClick acquisition for $3.1bn, Yahoo's $300m purchase of BlueLithium and Microsoft buying Acquantive for $6bn are denoting that the future of online advertising will be competitive. Till now, Google leads online advertising in search and Yahoo in display. But everyone gearing up for the battle, it is yet to be witnessed that who pioneers in video ads.
Resource: Rupiz Ads
