YouTube Takes The MySpace Approach To Ad Sales

from the thx-4-tha-add dept

We've wondered just how YouTube would be able to monetize its traffic and justify the sky-high valuations being tossed around for it, and it's now taking a page out of MySpace's book by selling advertisers the ability to create "brand channels" -- their own pages featuring a particular product or brand. The MySpace influence runs deep, as the first such brand channel (for Paris Hilton, natch) has a look that should be pretty familiar to anybody that's visited MySpace. The channel pages can also have their own "sponsors" -- for instance, the Paris Hilton page is sponsored by a Fox TV show -- and YouTube will split the ad revenue with the brand's owners. YouTube is also selling "participatory video ads", dressing up what many advertisers have already been doing (uploading their own content to the site) with some paid placement on the front page. YouTube says these efforts, which have been well-received by advertisers, are just initial efforts, and there's more to come. But will advertisers really find long-term value in paying for a slightly enhanced version of what they can do for free? One aside: the remarkable similarity between the YouTube brand channel page and the layout of MySpace pages (which, admittedly, isn't hard to mimic), as well as the Fox sponsorship, combined with the persistent "Who's Buying YouTube?" talk, almost makes you wonder if there's something deeper than just a sponsorship afoot between YouTube and News Corp.

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  1. identicon
    Anonymous Coward, 22 Aug 2006 @ 1:13pm

    Re: The YouTubes Baby!

    Adults have their own sets of problems but at least are generally contributing members of society. Adolescents dont have that going for them yet and the only thing that makes them worth putting up with is that they wont be adolescents forever.

    I had conceded the value of youtube in providing a practical public forum for individuals who otherwise wouldnt have it.

    The homogenization and popularization of geek culture would be happening all on its own without youtube, but there are some vehicles of this transformation that are more significant than others.

    I very carefully but perhaps unclearly said that to some degree, true geeks suffer as their community is invaded by lesser geeks. Whether some or many or most true geeks do enjoy youtube is irrelevant. What is relevant is that some do not and the items or memes in question are no longer for them geek-uniters but everyone-uniters in the best case and faux-geek-uniters in the worst cases, and either of these are distasteful to those who would rather not see their lifestyle turned into a vapid trend.

    Regarding my comments on myspace, I still regard them as obviously true. The users of myspace are clearly internet rugrats and so knowing theyre excited and engaged is good as long as I don't have to see them.

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