Is Google Earning or Losing Money with YouTube?
Analysts, reporters and other spectators keep on brining up the issue of how much money Google is actually losing on YouTube? Or whether they can afford it or not? But it seems that the lingering question that mostly affects the Internet marketers is that – what will happen if Google actually admits that they cannot afford it? If you are using YouTube as a marketing platform then should you be worried? Well, to think about it, no one actually knows how much YouTube costs Google or the exact amount of the revenue that it brings in.
Considering the overall cost, which includes the cost of storage, servers and bandwidth for streaming huge amount of video files over the Web, it is likely that YouTube costs Google more than they had expected when it started off. On the other hand, in case of the popularity of YouTube among worldwide video watchers has exactly been what Google had expected. But, Google has overlooked the fact that YouTube would also appeal to the advertisers, whose money equivalents the costs. Advertisers generally have been keener on getting their ads side-by-side with a service showing Hollywood videos rather than getting it placed on the sides of amateur contents.
Despite the fact that they have not yet found out the right formula, Google, however continues to squeeze in its offering. But the question is how long Google will be able to support this loss? Will they continue to bear the cost until they find the right formula? Google, as most people believe can afford to lose this amount of money for a while. But what nobody knows is that whether the company is ready to do it or not.
YouTube apparently seemed to be a huge advertising success – at least that’s what most people, including Google expected, as videos are probably the most popular form of media. On top of that YouTube offers to host videos for absolutely free. So, the question is what could probably resist the advertisers from getting tempted? Whatever the reason maybe, it seems that advertisers have indeed made YouTube a huge disappointment for Google.
On the contrast listing off other free content plays like Gmail, Google Docs and the upcoming Google Wave has never occurred in anybodies mind so far. Actually they were never expected to disappoint Google.
If Google remains a bit more patient and change its attitude about YouTube, then in the long-run the company can emerge as the leader in video and eventually figure out a way to utilize YouTube as the ideal advertising platform and also find out a way to make money out of it.
So, if you use YouTube for marketing purpose, don’t worry! Keep yourself focused and continue to do so. For backup, you can always post your videos to Vimeo and other sites – just incase.
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