Hey guys, Maybe this was asked before somewhere, but anyway, I was really wondering how on earth does YouTube generate revenue? I mean, with all that traffic, I never see ads or anything (excuse me if I'm blind to them...lol) But seriously, don't they monetize anything at all? Or is it just because Google doesn't need to? Any feedback would be appreciated. thanks
If you go on YouTube's website you will see that they monetize traffic with ads on the right side of the screen. They use video rolls before and after the video plays, sponsorships, and other various ways. You can visit their website and look where it says advertising on the bottom. That will show you all the ways they monetize their site.
They have video ads, so they earn very much from them. And I`m sure they have many other "secret ways".
Youtube is trying to capture and own the market at the moment and has not tried to monetize until recently (knock out the competition). Now they are looking into online ads in the videos
The biggest source of revenue would probably be partnerships with some of the big media companies (at least that's my guess). They do show ads in the videos and on the sidebar which would bring in money but probably not a 'significant' chunk.
Youtube uses corporate partnerships, content ads (on the right side of the page) and, video ads for monetization. However, I think, I read in an investor conference paper, that the return on investment for YouTube is poor, and probably it is still not profitable..not sure though.