Three years after
Google bought
YouTube it’s now monetising
one billion of the 7 billion videos viewed each week.
The high volume of traffic is a magnet to advertisers with 90%
of its homepage ad inventory selling out in the U.S. in the last
quarter. According to Adage, 90% of the top 50 advertisers have
used YouTube to run their ads.
This is impressive given the huge global drop in marketing
budgets caused by the current economic downturn.
Revenues will be further boosted with Sony, Warner, Universal
and EMI all signing up to sell their catalogue of music and videos
on the site.
Amazon and iTunes have also cut deals with YouTube earning them
further commission when users link and buy MP3s.
Google originally paid US$1.65 billion for YouTube before it was
clear how it would re-coup its outlay.
After three years of making a loss it’s becoming clear how it
will turn as profit.