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Wednesday, March 07, 2007

No Ads, No Video Search

Video search sites are finding making money a challenge, and that's because they haven't found an effective method of integrating advertising. While Google (via YouTube) has traffic and Blinkx has great technology, but not enough exposure, they both have no choice but to integrate pre-roll or post roll ads.

Writing for MediaPost, Aaron Goldman suggests that Google would be smart to buy Blinkx, which has relationships with legitimate media companies and superior video search technology. While Blinkx would make Google better, partnering with a video ad network would bring either company's video search to profitability much sooner.

YouTube users are accustomed to watching video ad free, but those days are numbered. Think back to online music - Napster and Kazaa and others convinced people for a time that music could be had for free, and publishers were slow to start selling their archives online. Along came iTunes, and now it's cool to pay for downloads.

The same thing will happen with video. While users won't love watching a 5-10 second clip before during or after a video, they won't stop watching entertaining clips just because they have ads. While the first video sites might temporarily see a downturn in traffic, the crowds will return if the only way to see exploding soda bottles, news, or clips from The Daily Show.

People will adapt to the TV model relatively quickly if the content is worth it, so finding a strategic partner to deliver ads is the way for Google, Blinkx, and their competitors to go. Someone has to "blink" and start consistently delivering ads, and the rest will follow.

By John Gartner at 02:27 PM | Comments (0)

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