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YouTube Ups the Advertising Ante

Posted on 11.13.2008

You don't need to be reminded about the proliferation of online video and what it can do for your business. The trick has always been how to get those millions of eyeballs on your video and, ultimately, to your website. YouTube - the world's most trafficked video site - has a solution ... pay for it.

Google is ready to cash in on their $1.3 billion investment in YouTube. This week they announced two important developments in their plans to monetize on the world's most popular online video portal. First, video publishers are now able to purchase sponsored search results on the YouTube home page with YouTube Sponsored Videos. Based on a cost-per-click basis, publishers can set maximum bids on keywords in an automated online auction to appear next to user search results.

There is a reason this is so significant. YouTube accounts for an enormous portion of Internet traffic. And the numbers continue to grow. In terms of search, perhaps its time to reconsider the "Big 3" of search and start talking about the "Big 4." The chart from Compete below shows why. And take a look at the numbers at the bottom - YouTube is outpacing every one of the "Big 3" in the past year. In fact, YouTube is on pace to supplant #3 on the list. After all, when people come to YouTube, they search.

Also announced, YouTube will start including AdSense with video embeds. Previously limited to YouTube's website, AdSense ads will appear on the bottom 20 percent of videos that are embedded on other websites - a very large, previously untapped marketplace. This is separate from regular AdSense accounts, but available to YouTube partners. This is certainly welcome news to video publishers, who were undoubtedly missing out on revenue when videos were embedded on other websites. The revenue generated from these ads will be split between YouTube and the YouTube partner. To get involved, you can submit an application.

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