Advertising on Youtube
http://searchengineland.com/google-adsense-revenue-share-42746
For this blog post, I decided to choose to talk about the above article, which deals Google Adsense. Aside from earning revenue from advertisements and search results from the Google search engine, Google also earns a decent amount of revenue from Google Adsense. Google Adsense is tied to Youtube. When Youtube members have a certain large number of views across all their videos, Google will then allow the users to place ads into their videos through their Google Adsense account, and whenever someone views the entire ad while watching their video, the user will earn a sum of money.
This definitely relates to the class topic about how advertisers are assigned to slots and how the advertiser with the highest value per click will receive the slot with the highest click-through rate. In class, we talked about how advertiser who pays a larger amount of money will be assigned to a higher position in the Google search results page. In this case, it is different and the assignment occurs on Youtube.
Allowing Youtube users to earn money from advertisements is actually a good strategy for Google to earn money. If users are able to earn money from their videos, they will be more inclined to allow the placement of advertisements on their videos. The more advertisements there are, the more Google earns. In addition, not just any Youtube users can monetize their videos. Your videos must consistently reach a certain high amount of views before Google allows you to earn money. The higher the number of views the better. This is because if a video has a high number of views (e.g. in millions), then there will be a high click-through rate. The click-through rate is basically the number of clicks on an ad over the number of times the ad has been viewed. So the more video views, the more the ad impressions.
Thus, videos with the highest views will have the highest click-through rate, and these videos will act as the “slots” as we talked about in class. Since Youtube users do not get to choose what kinds of ads are displayed on their videos, this means that Google assigns advertisers with the highest value per click to the videos with the highest click-through rate (most views). This benefits everybody – Youtube users that have videos with millions of views will earn a decent amount of money from Adsense, advertisers are able to expose their product to millions of people, and Google will benefit from all the advertisements across numerous Youtube videos.
– ht293