Sunday, October 08, 2006

Google Set to Net YouTube

Not contempt with winning the search engine wars, providing free e-mail, letting people look around the world and a whole host of other goodies, Google looks set to purchase the popular online video sharing site YouTube.

Reports vary, but it appears Google will make an offer of around $1.5 Billion to purchase the tenth most popular site on the Internet, according to Alexa.

You can see a mini-report into the finances of YouTube at my Computer & Internet Blog where I suggested YouTube may wait to sell out, instead of raking in the cash themselves.

Google are no strangers to the world of online advertising, serving millions of ads daily across search engines and through their popular AdSense program for webmasters around the world.

Targeting text based ads to video content looks like it will be a slightly different challenge for Google. Unlike when their ads are placed alongside search results, on private webpages or alongside e-mails there will be little textual content to use to search for keywords.

However tagging systems, video titles, descriptions and reviews may provide enough details for Google to generate sufficient revenue to pay the estimated $1.5 Million a month which YouTube now spends on hosting.

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