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COOPER ON SEARCH

Google must get YouTube right before it starts on TV

Fri, 19 Mar 2010 | By Will Cooper

Google bought YouTube in October 2006 but, despite multi-billion-pound investment, has yet to deliver for advertisers.

This week’s new media age Search Special included a vox pop of leading UK search agency heads, including Mindshare, MediaVest, and I-Spy Marketing. One of the reccurring comments was how YouTube is the second fastest-growing search platform but has yet to be successfully monetised by Google.

Despite the launch of an AdWords-like offering for videos on YouTube last year, agencies are still telling me it’s not that much more effective as an ad platform than it was a year ago.

While video search has long been cited as the next big growth area, is it not worrying that we’ve yet to see it properly monetised?

The rumours emerging this week that Google is developing a set-top box to deliver web content, including ads, straight to the TV are unsurprising due to the convergence of traditional TV and web platforms, as well as Google’s goal of applying its ad model to other formats.

But how can anyone be confident Google can do this if it hasn’t managed to monetise the leading online video platform there is?

There has always been a belief that YouTube will be an ad success story for Google, but it has been part of its family now for almost four years and brands and agencies are still asking questions.

Although being the dominant player in both the search and video markets will mean ad spend will continue to be pumped Google’s way, I can imagine there are plenty of agencies asking tougher questions about when YouTube will start to deliver.

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Readers' comments (2)

  • Roy Murphy | Fri, 19 Mar 2010 4:05 pm

    Moving into the TV medium could work well for Google. it does create another avenue for good quality content and a possible host of new, influential early adopting viewers and consumers - As well as the ability for Google to become a creator of content.

    A new channel platform with fresh TV and video talent vying for space on a shiny new area could be worth a look for advertisers, companies and agencies.

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  • Ian Wright | Sat, 20 Mar 2010 7:29 am

    Generation free are responsible for YouTube's massive
    growth over the years Google have the worlds most powerful and arguably most recognized logos in the world. Just think about the datacapture and consumer measurement they have in place for Google andYouTube combined it's a goldmine. Just like any old loss leader advert the trade up effects and other business related connections they get from this deliver significantly for them.

    Just think how much would it cost any global brand via SEM or traditional advertising to get the exposure they do globally everyday.

    One final point when it goes into global living rooms things will change dramatically.

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