Thursday, April 24, 2008


goog says its 68 million unique visitors spend an average of 54 minutes on the site every month. that means americans spend 748 million hours watching youtube videos each year. by comparison, the Texas Transportation Institute reports traffic annually wastes 4.2 billion hours and costs our economy $78 billion.

if goog ever figures out how to effectively monetize youtube's dedicated eyeballs, msft and yhoo better watch out.

the future monetization of youtube will be stunning. frankly, the $1.6 billion or so that goog paid for youtube may look like some of the best money spent in silicon valley for a long time.

if i had to guess how this will play out will be in multiple streams. first, we could see specific ad supported content like tv shows, movies or various forms of premium content. this would allow advertisers to rifle shoot ads to specific content. second would be fairly simple billboard type ads on pages that contain general content. i think the billboard type ad placement is an under appreciated form of ad spend on the internet currently. third would be search related queries that pertain to specific video content: say a search for a movie, book or music related to a youtube video.

and i could dream up three or four more forms of internet-related ads that could be tailored to youtube content.

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