Three years after Google bought YouTube it’s now monetising one billion of the 7 billion videos viewed each we...
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.