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September, 2010

  1. YouTube in money making shock

    September 17, 2010 by admin

    If you know me, you’ll know I’m a real Google fan (cannot bring myself to use ‘fanboy’). I’ll bore you stupid with the facts and figures of their unbelievable and meteoric rise. You’ll probably try to edge towards the door when I talk to you about Jeff Jarvis‘ inspirational book ‘What Would Google Do?’.

    To be fair, they are very impressive. In search at least.

    They have always said ‘do one thing well’. And they do do search very well. The email, browser and maps are also excellent. And of course the reason they can do all this other stuff is due to the revolutionary way in which it monetises search. The self-serve ad platform AdWords helps them control a majority share of the world’s paid search market. And AdSense further increases reach.

    They have had a few flops of course. Like Google Answers, the video player, Google Catalogue, the recent demise of Wave (which I thought was going to be excellent), Buzz (yet to flop but surely will) as well as several others.

    One of the larger acquisitions was their buyout of YouTube for £883 only 18 months after its launch. I understand it wasn’t all cash but still, a good deal for those who started it.

    It must be amazing to have a company which can swallow up fledgling, loss making businesses simply to stop others beating you to it. And then not to have to worry about making a profit or even any revenue. Just so as they don’t start making money and therefore less open to a take over. Anyway the subject of YouTube’s monetisation continues to spark conversation and presumably more and more head scratching and navel gazing at Mountain View. How can earth’s largest video sharing site and one which is increasingly being used more by brands, still not make money? The fact that it doesn’t matter if it doesn’t make money isn’t the point. The point is that it should be making money given its profile and following.

    So when I saw this video I felt something similar to relief. Not that I stand to gain anything from Google adding to their profitable business but for a while I’ve been waiting to see what they’ll do. YouTube is simply a media platform and those have been monetised successfully for hundreds of years. Sides of buses, billboards, magazines, tv and even good old fashioned websites. I have no idea how much Tippex paid for the takeover but I think it was brilliant and like most things that are so, it was simple. And presumably, significantly cheaper than making yet another tv ad.

    So hats off to Tippex for trying something new and I hope that poor old Google made a bit out of the deal too.

    I can’t embed but here’s a screengrab. Click it to view the takeover.

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