Hello, I saw that YouTube was bought with a large amount of money by Google, but is it worth?.. yes it got millions of impressions.. but i asked my friends if they clicked on google ads, they said none did... so does youtube make profit to recover the amount of money payed. Also several sites like youtube opened so they are losing %.
It is ranked top ten in Alexa so it get's ton's of traffic also big company's pay them to feture their videos on the main page on the side. The only reason youtube is as big as it is, is because of google and google makes money from adsense on youtube.
Traffic = Revenue. It's very simple. Youtube as you know has humongous traffic, which means the profit is sky high.
Look at the big picture. From a brand image point of view it's huge for google. Even if no one clicks on the ads, they get the google brand image forced in their face while they are on the site, thus reinforcing their image and getting more people to use their search engine. Even if youtube costs them money to run, it's cheap advertising for their company.
hi guys well I saw one article regarding google buying youtube. Google actually gave some very good amount of shares to those guys ( 2 of them). I cant remember the number of shares that was given to those youtube guys. Was it around 400,000 shares of google or maybe less??? dont know for sure
I'm sure it's generating money and more upcoming money and more money for other Google's projects. Anyway if it fails (which I doubt) they can easily get money when selling it, hope to see it on DP (Buy/Sell Sites ).