Yes, You Too Can YouTube
YouTube, a video sharing website, has greatly succeeded with enormous stock of videos and users account. For YouTube is open free to the users and visitors, it has mainly depended on the advertisements, letting their clients post up their banners, pictorial display ads, and text ads on its site. So far, the company has got their revenue based on pay-per-click, but now it is trying to turn it other way by implementing a new tactics called "in-stream" advertising. The video ad clips or pictorial ads will be overlaid on videos so that it would be more eye-catching. For this "in-stream" advertisement, YouTube is now releasing a set of free software tools to the Web developers and let them create fully functional YouTube players on their own sites. By doing so, there will be more and more people watching YouTube's video clips with the in-stream advertisement, even if they do not visit YouTube site. Yet since it is new, there will be some turbulence and will take a few years to be adopted. It might be risky but it also might be a great chance to renovate the world of advertisement.
Original Text: http://www.forbes.com/technology/2008/03/12/youtube-Tivo-Spore-tech-personal-cx_ag_0312youtube.html
Since internet became a part of our life, everything changed. I can look up the news from far away, from some country that I never have heard of instantly. I can meet the people that I would have seen or talked to otherwise. I also can find the information at the speed of light, the information that I would have looked up in the library for three days, and nights and still wouldn’t be able to find. In short, internet is just so amazing.
Not only for my own purposes, for the business, the internet is just a great opportunity for every single business: even a small shop, the mom-and-pop shop as Professor Lee says, can advertise locally or get a better supplier by searching and contacting online. Now that small shops are actually using internet as a key to success, then why wouldn’t the big firms? It is just obvious that they would be eager to use the internet as a new business opportunity, as a great information center, and as a great advertisement tool.
For YouTube, this era is just perfect. There are thousands and millions of people visiting YouTube everyday and the company’s clients, eager to show their products or brands to those people, are ready to give whatever it wants as long as their products are recognized by those users. It’s just perfect.
YouTube has been a great success in terms of revenue through advertisements so far, and with this new “in-stream” advertisement, it’s just going to be bomb. There would be tons and tons of clients. Also since the advertisement is within the video clip, YouTube would charge more for advertisement.
Yet there are some concerns. First of all, YouTube has to remember that users are sometimes impatient and disturbed easily. It is rare the web-surfers click on the pop-ups. It’s just disturbing. If YouTube puts too much advertisement on the video, or the advertisement play time is too long, they are not going to come back. I have seen many of my friends stopped using Pandora TV (http://pandora.tv/) after it put in three ads that take about 30 to 40 seconds. It’s just that simple. Advertisement is good as long as it doesn’t disturb the users. Secondly, YouTube has to remember that there are many other rivals and substitutes. There are many ways to advertise for the clients and there are other sites that offer the same system that YouTube has. Right now, YouTube may be the number one but it doesn’t mean that it is going to be number one.
20500419 Entry #1
