YouTube: Too rough for advertisers?

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Finding the right way to advertise to its audience has San Mateo, Calif.-based YouTube scratching its head.

"That's why we're taking our time," said Julie Supan, YouTube's spokeswoman, referring to why the company has yet to post ads on its site. "The model we bring forward is going to be a new model because this is a new market."

She notes that the site has already proven itself a powerful promotional tool for companies, including digital-tools maker Logitech and rock bands such as the Red Hot Chili Peppers who have seen their commercials or music videos posted on the site.

Regardless of the kind of ad YouTube opts for, it's going to irk some viewers, Stein said.

"It's going to be jarring experience the day they turn the ads on," Stein said. "I question whether they should have included ads from the beginning. Now, you're shifting the proposition after the audience has gotten used to an ad-free site."

And there's no guarantee that an ad won't be matched up with something unseemly or downright offensive.

Most of the sites prohibit pornography or anything that violates the law. Yet, one video featured on eBaum's World Thursday showed a multi-car crash on an icy road. As cars continue to slide into each other, up comes a banner ad for Bridgestone tires.

Is that the kind of content the tire company wants?

Heberger acknowledges that sometimes the video doesn't quite fit the advertiser's message or image.

"The problem is advertisers want it both ways," Heberger said. "They want to be in front of that 18 to 34, but they don't want to be associated with much of what that demographic finds entertaining."

What upload sites will do to draw the more squeamish advertisers is create dedicated areas where the sites can guarantee clean videos, said Stein, adding that such safe zones can't be too clean.

"We'll likely see video sites establish protected areas," Stein said. "That's where you'll find Chevy and Proctor & Gamble. But YouTube can't say we're shutting all the iffy content down because it becomes one more control of the man. You eventually kill the reason for being there."

[gggg sssss]

not 15 seconds

The ads dont need to be 15 seconds. 3 - 5 seconds is enough when the whole program is only 50 seconds. The bigger problem is the technology that buffers the pre-roll for 5 seconds, and then breaks for another buffering session for the actual content. Make it seamless and there will be no problem. Or put a banner under the content for as long as the content flows. I claim a patent on that delivery method!!!!!!!

[alansegal]

Video Quality sucks

Why would any advertiser pay? The video quality is so poor; it amazes me how this company got funded by a VC (then again the VC's really don't know much in anycase, do they?)

[BMR777]

Ebaum's World = Bad News

EBaums World is heavy on the adware. Their toolbar has a variation of the ISTBAR parasite in it.

Details: http://www.siteadvisor.com/sites/ebaumsworld.com

They have also been a Gator/Claria ad partner in the past.

127.0.0.1 ebaumsworld.com

BMR777

[Guillaume123]

Why is no one mentioning....

The fact that YouTube is a place for egregious copyright violations
and that advertisers on the site would be held libel for these
offenses. Have we not learned any thing from Napster? Do you
really think an advertiser from Madison Ave. is comfortable with
advertising against stolen music videos, TV clips, and other
copyrighted content? I am perplexed at the lack of
concern....hmmm

[Don_Dodge]

Billions of page views vs. billions of advertising dollars

Advertisers are willing to spend billions in on-line advertising. Google has more advertisers than they have quality inventory. Google reportedly had a billion dollars of ad commits that they couldn't book this qaurter due to lack of quality page inventory. MySpace, YouTube, and others have billions of page views and lots of buzz...but how can the advertising be targeted? Remember, Google and other CPC companies only get paid when a user clicks on an ad...not just a view. Advertisers are also worried about being associated with unpredictable, and perhaps objectionable, content from uncontrolled user generated content sites.

Advertisers could opt for simple banner ads and pay much lower CPM rates for page views rather than CPC clicks. Google doesn't want to engage in display banner ads. They prefer targeted text ads that pay per click. There are billions of dollars on the table so there will be a solution...it is just a matter of time.

I wrote an in depth blog article on MySpace and YouTube advertising potential at http://dondodge.typepad.com/the_next_big_thing/2006/04/myspace_youtube.html

[g4e]

YouTube is another league and shouldn't be compared w/ ebaumsworld

I'm pretty sure, that YT will implement a very smooth and elegant way to include ads (or whatever). they won't disturb the users.

check out a comparsson of 40 online sharing communitiees: YT smokes clearly the competition in every aspect and thus can and will implement completely new models far away from the classic ads scheme!

Comparison of 40+ online video sites
http://www.mustseeblog.com/?p=68

[zwebusa]

Ad/Content matching

We see ads for products next to content about accidents and tragedy everyday. It's called local news and it's big business. Why not on the web...

[smpfilms]

Break.com steals from it's users

On YouTube, My videos over the last 7 months have reached 1.6 million plays under the username: SMPFILMS but when I went to post a video on break.com, they took my video.. removed my company logos and hosted it on their main page (this is refering to the video titled "Broken Leg"). They offer anyone whos video makes it to the main page $250.00 US, but when I went to collect my money, they denied me my profits, even after all the paperwork was completed. I have been contacted by other victims of break.com so I know I'm not the only one. My username on break.com was SMPFILMS as well.

[VivekBhargava]

You tube is an effective advertising medium in most of the emerging markets. In emerging markets only 5 / 10 % of the population have internet access, furthermore due to disparity of socio economic status, this internet population controls significant portion of the disposable income.

If one adds a further filter of Broad Band internet access, one is talking about crème de la crème, this makes advertising on you tube in a country like India worth it's weight in GOLD.