How YouTube will make billions

News:  Google officially announced the deployment of its new internal pop-up ads within YouTube videos.  According to one report, “it is charging $20 per 1,000 times the banner ad is presented.”  Furthermore, “the ads will be paired with videos supplied by YouTube‘s professional partners, such as Warner Music Group, as well as a select number of user-generated videos. Those clips were produced by about 70 amateur filmmakers who were chosen by YouTube and who will share the advertising revenue.”

Also, the NYT reports:  “With 51 million users in June, according to Nielsen/NetRatings, YouTube now attracts an audience that is larger than the combined audiences of its three nearest competitors, MySpace, AOL and Yahoo. Its adoption of overlay ads for online video could turn the format into an industry standard, advertising executives said. The video ad market, which is expected to nearly double from last year to $775 million, has been projected to grow to $4.3 billion by 2011, according to eMarketer, a research firm. ”

Analysis:  Not to toot my own horn, but I reported on this development on YouTube back on July 3rd and July 26th.  The mainstream media are close to two months behind.

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