Youtube Makes Efforts In Video Advertising

In order to attract advertisers to devote more budgets to video advertising area

, YouTube has developed many new models, improving the promotion effects through interactive and social elements. The companies now still put 38% of the advertising budget into television advertising. The online video advertising budget is only 1%. However, YouTube is trying to change that.

In order to compete with the television advertising for budgets, YouTube is trying to convince major brands to believe that online video is the best channel to contact with the users. This is part of YouTube's evolutionary line. The company is transforming from a free all-encompassing web site into a professional video web sites to attract the attention of advertisers.

The vice president of YouTube online video said: "We hope in the next year and the future, YouTube can occupy a greater share of brand advertising budgets." YouTube has gone through two years of restructuring. It hopes to contribute more revenue for Google through professional video and new ads. YouTube said the site has currently an independent monthly global audience of 800 million. Analysts estimate that YouTube annually contributed more than $ 1 billion of advertising revenue for Google, and it may have been profitable.

While YouTube has been established for six years, its revenue-generating process has just begun. The data show that this year, the online video advertising spending of all the U.S. advertisers is about $ 2.2 billion. The TV advertising spending is as high as $ 60.5 billion. The major advertising companies have now started to recruit talents with online video experience. According to estimates, YouTube this year will contribute 5% of revenue for Google. For brand advertising, television will continue to occupy a large share, but many of the brands began to invest funds in non-traditional areas.

In order to wrest more share from the television advertising, YouTube must attract new advertisers in addition to the existing music, entertainment and technology companies and persuade them recognize the effect of YouTube. Google's majority of revenue still comes from the the search advertising, while advertisers will want to make the brand rooted in the minds of Internet users, so the company must learn the main means of communication with the advertisers in order to develop brand advertising.

The analyst said that YouTube last year opened up the platform, making the brand and the user integrated into the ad through any technology. It has only just begun.

by: Amanda Xia

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