YouTube + Paris = BoobTube?
YouTube has launched sponsored "Brand Channels," and the first one is for Warner Bros. Records new release for Paris Hilton. Given their bandwidth bills, this is a very smart move.
They serve 100 million videos a day to the tune of a reported $1 million per month in bandwidth costs. Until now, they've relied on text ads as their sole source of revenue.
Do the math. It adds up.
Marshall Kirckpatrick asks Can Paris boost YouTube?
Custom branded channels may create a sufficient partition from the parts of the site filled with copyrighted content and thus command higher ad prices. I’ll be watching the Paris Hilton channel closely and will report further details as they become available. Yes, I'm sure he'll be watching it closely ... And you can too:
Steve Rubel doesn't like the idea of YouTube running additional banners on the sponsored pages, but there are plenty of examples of this in newspapers, magazines and TV. I think YouTube could take it a step further and let advertisers pay for exclusivity or the removal of ads from the pages.
Scott Karp thinks brands will have a tough time. Funny thing is, however, that he points to the Diet Coke/Mentos video on the homepage as one of the examples of why things will be so hard. Yet it is a great example of how advertisers should embrace the trend.
The Extreme Mentos and Diet Coke Experiment is a pure user-generated viral video. Tons of you have seen it. Mainstream media has reported on it. Then, a funny thing happened: Mentos embraced the idea and launched a competition. They understood that YouTube and other forms of social media are allowing consumers to become a driving force in the way advertising and marketing is created and understood.
What's so hard about that, Scott?
More discussion: TechCrunch, Mashable, Publishing 2.0, Bloggers Blog, Clickety Clack, Good Morning Silicon Valley, InterMedia, Frank Barnako, Micro Persuasion and Open Culture. Mainstream media reports: Financial Times, Reuters, and the LA Times.
Technorati Tags: social media, advertising, business.models, youtube, viral
Tuesday, August 22, 2006
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