20 August, 2009

YouTube pumps more Ads into lineup in effort for profit

Google, which hs struggled for nearly there years to turn YouTube into an advertising platform , is aggressively pushing new adv formats and ramping up deals with media companies for the online video site. YouTube said Wednesday it will distribute a rand of short clips form Time Warrner properties such as CNN and other Cartoon Network. The agreement flows similar deals struck with Walt Disney Company’s ABC and ESPN and a number Hollywood studios earlier this year.

Such as content is one piece of YouTube’s new money-making emphasis—a sweeping effort the company has tapped Google veteran Salar Kamangar to oversee.

YouTube has recently added larger ad formats , shown a greater variety of ads against user-uploaded content and promoted videos that draw higher ad rates more than other videos.

While YouTube continues to lose money, Google Chief Financial Officer Patrict Pichette recently told analysts the was “really pleased” with YouTube’s revenue growth and said it will be profitable “ in the not long ,, too long distant estimate YouTube ‘s revenue will roughly double to about $500 million this year.

Kamngar, who joined Google in 1999 fresh out of Stanford University and helped build Google’s AdWords search-ad system, has pressed YouTube to be more aggressive with online ad s and advocated promotion more content from media companies on YouTube’s homepage.

Advertiser are noticing a difference. YouTube is “definitely being more creative” said Nick Bomersbach, vice president of ecommerce for JC Penney Company. The is making YouTube “ a much more important component of our marketing companies, “ he added , after a campaigns it launched in July to promoted its new clothing line from profession skateboarder Ryan Sheckler was more successful in directing traffic to the retailer’s Web site than its previous YouTube campaign.

Last year, Google Chief Executive Eric Schmidt admitted that making money form YouTube was “taking longer than I thought”. Schmidt made turning around YouTube a company-wide goal and Kamangar was chose to jointly run YouTube with Hurley.

“We’re going through the process of still learning the ins and outs [with Google], even though it has been two years, and he’s helping us navigating the waters,” said Hurley. Kamngar has pushed YouTube staffers to take more risks. Last November, he overrode some executive ‘s concerns about whether a feature that allowed people to watch video in high-definition was ready to launch . The feature went live three hours later.


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