The monetization of YouTube goes into high gear
The monetization of traffic goliath YouTube has been a hot topic ever since Google bought the online video destination a few years back. This week YouTube made two big announcements in regards to new revenue streams that not only make business sense but more importantly doesn’t impact the user-experience.
On Wednesday YouTube announced YouTube Sponsored Videos, basically the same sponsored links strategy tied to Google web search but specific to YouTube content. “Sponsored Videos is a self-serve advertising platform that will allow you to promote your video to the audience you are interested in reaching in an easy, effective, democratic, and affordable way. Then, when people use YouTube to search for videos, YouTube will display the most relevant, compelling videos alongside the search results. These videos are clearly labeled as “sponsored videos” and are priced on a cost-per-click basis.”
Here is the offical video explaining how Sponsored Videos works:
Yesterday YouTube also announced that they will be serving overlay ads in their embedded partner videos. This obviously wont have the same impact as YouTube Sponsored Videos but is a strategy that makes sense regardless of how much revenue it adds to the bottom line. Up until this announcement was made YouTube only ran overlay ads against partner videos running on YouTube, allowing the monetization of partner videos no matter where the video is being played is a win-win for both YouTube and the content producer.



