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Discussion Report Google and YouTube

Raquel Peters
raquel.peters@duke.edu

This report summarizes the class discussion on “Google and YouTube”. The assigned readings for this discussion were the articles “YouTube vs. Boob Tube,” by Bob Garfield “How Google Should Monetize YouTube with AdWords and AdSense,” by Jennifer Slegg, and “A Look Ahead at Google and YouTube” by Salar Kamangar, Vice President, and Product Management.

[1] YouTube vs. Boob Tube

Google paid $1.65 billion in stock for You Tube. Today, TV advertising is starting to break and while there are still some benefits to advertising on TV, a lot of companies like Google are realizing that the Internet is a gold mind for economic opportunity. They started to realize that people were using the Internet as a way for them to share with other people and have something to talk about with friends. YouTube gets 65,000 hits a day and with heir popularity it was no wonder, Google wanted to take advantage of it.
Google would need and believes they can have:

• A business model to convert the site into an advertising medium
• A big change in the worldwide media economy.

And since fixing their own advertising avenues and gaining revenue of $9.3 billion dollars, it seemed possible that they could do the same with YouTube. Chad Hurley and Steve Chen started out of a garage, and wanted a way to embed videos on other sites. They tried to get advertisers to fund them, but little did they know that problems were already going on in the advertising industry. People were not watching commercials so advertisers were pulling out and show quality was suffering. Some companies like CBS tried to curtail this spiraling dilemma by putting shows online, but these show were hurting local affiliates.
YouTube had refused to place ads in videos in an attempt to preserve the viewer experience, but Google needed a way to make some revenue from ads. The only spot left for ads was the area next to the videos, and advertisers could wait until there ads made it onto YouTube, and then went viral for maximum exposure. Google also tried to use metadata to help place relevant ads to videos, but it was hard for YouTube to control what descriptions people put on the video, and the met data was limited, problems could arrive such as:

1. A company for meow mix could want their ads under cat related videos and then the ad could appear under videos of people killing cats.
2. An advertiser’s ad could appear at the front of a naughty video when they did not want it to.

YouTube has the basic problem of not being able to control the content on their site even with the flagging system they have in place and it just is not practical fro one person to go through and look at all the videos for appropriate content. They also have to deal with trying to prevent copyright infringement and people posting material that they have no rights too. There demands a big level of trust with the users to keep this kind of material off.

An example was explained abut Napster, and the fact that they were just uploading material they did not own or have the right to post, and YouTube is simply just transmitting information so they have some protection from the Digital Millennium Copyright Act.

[2] How Google Should Monetize YouTube with AdWords and AdSense

Google began experimenting with video ads and has done a lot to promote them, for advertisers to begin using them in their ad campaigns as well as publishers, encouraging them to use video ad friendly ad unit sizes and enabling image ads. They have a lot of videos running on the AdSense network, but they haven’t said how much.
Putting 30 second ads at the beginning of videos runs the risk of being intrusive to the viewer. Some solutions to the problem are:

1. Advertisers could choose what videos they want their ads too show up under, like AdWords
2. They could pay for better positioning of videos, and it could be similar to the sponsored listings versus the organic listings in the regular Google search results, but with videos
3. The members could put in keywords to match with the video, but they runt he risk of spam and irrelevant keywords and descriptions.
4. They could have the video just show up on YouTube and not the whole Google or content network, for example:

-Snowboard company targets just YouTube visitors who search for snowboarding videos by keyword, having the only appear on YouTube.

5. Google could allow publishers to monetize from YouTube videos they post to their blog or website, like AdSense
6. They could allow those who upload original videos to YouTube, to use their publisher ID to make money when someone views their video right on YouTube.

[3] A Look Ahead at Google and YouTube

Google and YouTube have remained separate entities since the acquisition and they both have continued to play to their strengths. Google has its search and innovation of new services and YouTube is a leading content site with a user base that uses and shares videos. Google provides the monetization platform and the support that YouTube needs to continue to be successful. Google already has result links for videos that when clicked will take the user directly to YouTube to watch the video. They realized that people want videos, websites, and pictures in their results, and they have continue to try to address these desires and future develop their search capabilities.

References

[1] YouTube vs. Boob Tube
[2] How Google Should Monetize YouTube with AdWords and AdSense
[3] A Look Ahead at Google and YouTube

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