So YouTube started displaying advertisements on video clips in the US a week ago. Before long, this will roll out everywhere. The first question on my mind is what took them so long? Backlash be damned, I think this could be a small step towards something brilliant.
Sometimes their activities seem pretty random, but I’m going to go out on a limb and credit Google with having a Grand Plan. It doesn’t strike me as a coincidence that Adobe is adding H.264 support to Flash while YouTube is converting its entire library to H.264 (essentially for iPhone, but I digress).
Higher quality means higher operating costs (ie: storage and bandwidth), which Google will want to pay for somehow…
Google are in the business of selling advertisements
Call them what you want. Search Engine. Rival to Microsoft Office. Mapper. Google are in the business of selling advertisements. There’s a fundamental difference however with putting ads on YouTube and pay-per-click services like Adwords.
A search result is an abstract thing, a function of the engine which no one website can own. A video however, is the sole property of whoever made it. The current ad approach doesn’t seem to give due respect to the content creators.
Matt Harding, mentioned in the linked CNET article has a legitimate complaint. He should not only be able to choose whether to have adverts in his own content (even if no-ads means settling for low quality), but what adverts to allow. Existing services like Text Link Ads already provide this level of control.
Most importantly, he should get a piece of the action, damnit! His video has been viewed almost eight million times. Even if YouTube got the majority of revenue for providing the platform, as little as a $1 cut on a 1% clickthrough rate should send him almost $80,000. I think he’d feel much better about that.
A move like this could create a revolution in user created content. If an individual could make some pocket money (or even a living) from their creativity, then all sorts of new things are possible, not only in terms of variety but also production values.
Successes like Wine Library TV show us that niche audiences are the future. As Robert Llewellyn points out in his rather entertaining video blog, the missing link is how to make something self-sustaining. WLTV exists as a brand reinforcement exercise for an online wine shop, but ads may be the key for Joe Public.
When a car enthusiast can create his own Fifth Gear, when a gallery can create their own South Bank Show, that future will be here.