Schmidt: YouTube + ads = 'holy grail'

Google CEO Eric Schmidt has spoken more than once this year about monetizing YouTube, but he showed some signs of patience on Thursday for finding a new, good way to sell ads on the video-sharing site. And when Google gets the mechanism right, Schmidt said he expects to hit the mother lode.

"There will be new monetization forms. That is what we are seeking. That is the holy grail," he said on a conference call after Google reported disappointing second-quarter earnings. "When we find it, it (monetization) is likely to be very large because of the scope and scale of YouTube."

YouTube has tried pre-roll and post-roll adds--those that show before and after a video plays--and "in-the-chrome ads" that are placed in the frame around the ad. So far, Schimdt said, the company is happiest with in-video ads that are embedded across the bottom of the video area itself.

"That looks like a winner. We've also had success with gadget video, and gadget video ads might be successful because they allow you to tell a story," Schmidt said. But don't expect it those to be the last of Google's YouTube ad formats. "We're working on revenue scenarios and newer product. I personally do not believe the perfect (YouTube) ad has been invented."

Google faces an expensive, high-profile lawsuit from Viacom regarding copyright video on YouTube. But Schmidt wants to turn such potential rivals into allies through a program that identifies infringing content then lets the copyright holder share in ad revenue from the video. Studio Lions Gate entertainment just signed such a partnership with Google.

"Lions Gate has good judgment that rather than sue those customers (they'll) show an ad," Schmidt said. "We think those kinds of models are sustainable."

[mattumanu]

Dear Schmidt,

I never look at the "in video" ads, and in fact find them distasteful. This morning I was watching a youtube video from a gay person, talking about gay issues, and the ads were for, I kid you not, Sex offender websites. How stupid is that?

[SmBizMan]

when it says "your comment will be added shortly" it really means it buddy

[mattumanu]

It didn't say "your comment will be added shortly". It specifically said, "Please try again"... Buddy

[jumpjetta]

Why does the second sentence of the first paragraph say "Yahoo?"

Come on. Edit your posts. Or if you somehow meant Yahoo, add some context.

[Shankland]

Thanks for the catch--we fixed it.

[skurewu]

To the guy who posted a million times that he viewed a gay video:

The issue at hand isn't how relevant the ads are, its how they are placed or embedded to generate the most revenue. Moron.

[mattumanu]

Moron... yeah whatever, they'd just changed over the site to this new layout and I was being told that my post hadn't gone through, please try again... so please drive your power chair off the nearest cliff you can find.

And, the issue at hand is not just how they are placed. Let's take a look at what failtard that is skurewu said just now...

"The issue at hand isn't how relevant the ads are, its how they are placed or embedded to generate the most revenue"

So he's saying that Google thinks that placing sex offender ads in videos by gays is a good way to generate revenue? Let me spell this slowly for you so you can practice at home: e-f-f-o-r-t-l-e-s-s f-a-i-l-!

[EZII]

What Google needs to be commenting on and worrying about is that Viacom lawsuit. A loss will result in billions of dollars in settlements from every other media company, sports league, etc.. with a golden ticket.

Worry about that first Google. Who says Youtube will even be around much longer when Google takes on all comers from around the world looking for a handout.

[keeef091]

Dr. Eric Schmidt has very many mafia friends, some of whom produce p_rn, even child p_rn from captive women and children, which is how Google got sued for profiteering from deliberatly promoted child p_rnography & why they withheld the identities of child p_rn distributors from police. http://endmafia.com