YouTube is proving to be a challenging advertising platform for Google. Google acquired YouTube in 2006, signaling big ambitions for online video advertising. However, they are running into a series of problems with copyright infringement issues and the fact that many online agencies and advertisers are still weary of this relatively new medium.
Some of the snags Google is running into include:
- Advertisers are reluctant to put their ads on YouTube due to fear of questionable content of amateur videos. For example, can you imagine a Folgers video ad prior to watching “Coffee causes heart attacks”? Or a Disney family friendly ads displayed before some provocative video of a celebrity?
- Copyright litigation. Viacom Inc. sued Google last year because unauthorized television and movie clips were posted by YouTube users.
- Inefficient sales process. The rapid growth of Google has hindered the sales systems.
Google has launched “Operation Spaghetti” to unclutter the mess that YouTube has been for them. Even if these problems are solved, will advertisers see a benefit to attaching ads to online videos on YouTube? This would be an extremely cumbersome process if we had to evaluate each ad prior to placing a video ad for our clients.
- Will YouTube filter videos for suitable advertisers? Maybe
- Will it rely on the YouTube community? Doubtful!
- Perhaps a combination. We’ll see…
In the meantime, agencies and advertisers running video ads have other options. And knowing Google, they have a plan already in the works to further monetize YouTube. Stay tuned.
44wxc4bl7leu09yg