November 14, 2008 by Matt Thomas
YouTube has revealed a new system to auction advertising on the site. Perhaps unsurprisingly, it’s very similar to the one used by Google. Just like Google, it will promote ‘sponsored video clips’ on the same page as organic search results.
This is merely the latest in a long line of advertising formats road tested by Google in an effort to finally make some money out of what remains a very popular website. In fact, YouTube actually goes far beyond popular, it’s hugely influential as well, recently passing Yahoo to become the second biggest web search provider in the world, in terms of actual searches conducted, beaten only by parent company Google.
It can only be a matter of time until this site makes a huge amount of cash for itself and, of course, Google. However, they are keen to get the profit model right first time which is why they’ve been trying out all these advertising formats.
They may well have hit paydirt with this deceptively simple auction based format. After all, it works okay for Google…
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