You watch YouTube — everyone does. Whether it be some new product or a funny montage, we all use YouTube on a fairly regular basis. It’s the hosting site many turn to when they launch a product, find something cool, or want to share something potentially viral. The onslaught of Twitter, Facebook, and others like Twitter-owned Vine are having an effect on YouTube. According to The Wall Street Journal, YouTube raked in about $4 billion last year, but there was no profit. The answer might be a new ad system.
The reason for the lack pf profit is cited in cost, where YouTube reportedly paid for “content”, as well as new equipment.
Rather than seeing ads that make no sense to you, sources claim Google is entertaining the thought of targeted ads on YouTube. Much like you find with banner ads that show things you search for, so might YouTube. The ads may come int he form of bottom-dwelling banner ads, or commercials that play before the actual video.
It’s a move to keep everyone happy. Major content providers will likely want to monetize their channel beyond chance clicks, so Google will have to make ads work for the end user.
It’s also reportedly part of their initiative to get users subscribing to channels, where original content streams like a TV station. Again, monetization for everyone except you.
There’s no word on when the new targeted ads might show up on YouTube, but Google has reportedly earmarked it for later this year. When it does happen, you might not even notice the difference.
Source: The Wall Street Journal