How Does You Tube Make Money?

[richardbhullar]

i was just wondering how you tube makes money, is it just the advertising, or im not sure, can anyone help me

[stand856]

once gootube kicks off their ad campaign, they'll be profitable

[Envydia]

I think maybe word of mouth and advertising

[JohnR]

http://en.wikipedia.org/wiki/YouTube

it will have most of the answers you are looking for in regards to youtube

[Hassman]

it is advertising yes. Now that big companies like CBS have teamed up with them so viewers constantly see their videos, right there is big money.

[RockerOB]

with youtube in google's hands, it has equalized itself with BIG money!

[sicnarftea]

adding to this, Google had introduced "video ads", if you're an adsense publisher you would've gotten a newsletter explaining it, you can also check it out in your accounts.

I am assuming this would be rolled over to youtube soon, but I am not 100% sure how. But if peopel are forced to watch like a 15second ad before each clip.. people are going to be pissed off, and I know i would be, because that is what happens with MSN videos... bloody msn forces me to watch ebay ads everytime a video loads

[NeeJam]

youtube makes money via googles ad's on the site, although i believe they are implementing a video based advertisement before the videos to bring in more revenue and to pay disney etc for their content on there too as they've been striking a few deals over that recently, i believe

[Bugman]

If an ad pops up on a video I was going to watch, I x out the whole window.

[jegan17]

It doesn't.

This is straight from Google's 10-K (annual report):

"Also, the anticipated benefit of many of our acquisitions may not materialize. For example, we have yet to realize significant revenue benefits from our acquisitions of dMarc Broadcasting (Audio Ads) and YouTube."

For those who don't speak US GAAP, this means that YouTube has not made a 1% contribution to yearly revenue to google. That is, for an acquisition of $1.5 billion, YouTube makes less than $200 million per year (1% of 21 billion their 08 revenue) probably a lot less than this but they don't break out YouTube's segment revenue.

Now, run a DCF on that acquisition.

[veikoh]

The question is actually "how does google makes money" and the answer is very simple.
1. We, Internet marketeers are doing SEO and finding interesting topics to get visitors from Google natural seraches to our site.
2. We setup a AdSense boxes to get any money out of it and selling our visitors back to Google.
3. Some idiots are paying to get visitors to their site by purchasing those links.
4. Google is taking 80% of commision out of it as from 5 cents minimum for advertiser, you will earn 1 cent if somebody is willing to click on that link.

[timboj]

youtube is 100% advertising, that is how google as a company makes 95% of their money