On Wednesday, the Associated Press reported that Google’s subsidiary video sharing website, YouTube, will begin hosting sponsored advertisements alongside its organic search results.
Google purchased the popular video streaming website two years ago for a total sum of $1.76 billion. Since then, the search company has tried a variety of techniques to make an adequate ROI (return on investment), but so far has failed to make an impressive profit.
Google’s newest tactic will involve integrating its masterful online advertising platform into YouTube, giving advertisers the chance to create PPC ads for the site’s estimated 300 users from across the world.
YouTube product manager, Matthew Liu commented on the new platform which was launched Wednesday: “We are trying to blend the best of Google with the best of YouTube.”
Indeed, YouTube’s advertising platform works very much like Google’s popular AdWords service: advertisers bid on certain keywords which match to their ad content; when a browser enters those keywords into a search query, the ads will be displayed on top of or alongside the organic video search results.
This type of platform stands to benefit video-making advertisers in a more specific way than advertising through AdWords alone. YouTube is an extremely popular website, with hundreds of new videos uploaded every day. The competition to rank in a top position on the organic SERPs is steep, to say the least. But if advertisers/video-creators would be willing to pay enough for their PPC campaign, they could push their video links to the top of the sponsored section.
This is one of several attempts made by Google to create a profit on YouTube through advertising. Other techniques have involved running short commercials before or after video clips. Google has benefited enormously on its AdWords advertising platform, so here’s hoping it will prove just as successful for YouTube.
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