Google Inc. (NASDAQ:GOOGL) is finally winning the monetization battle against its fierce rival Facebook Inc. (NASDAQ:FB) on the advertising front with its video unit YouTube. YouTube stars are becoming valuable in terms of advertising revenue prompting Google to do all it can to protect them from being tapped by Facebook and other video startups. During an interview on CNBC, SunTrust Robinson Humphrey Managing director, Robert Peck, argued that the need for premium content online is what is driving YouTube as a unique video advertising platform.
YouTube is turning out to be a one stop joint for advertisers who have over the years been looking for ways of tapping into the young generations through advertising campaigns. YouTube’s over 1 billion monthly visitors is what is also making it attractive to advertisers despite facing immense competition from video startups and Facebook Inc. (NASDAQ:FB). Google Inc. (NASDAQ:GOOGL) continues to reap a great deal from the fast growth of video ads that advertisers are nowadays preferring for carrying out marketing campaigns.
“What is really interesting is the advertisers, they are looking for premium content online. They are looking to follow the younger generation which is Online. They are going to shift away from the linear TV, so it is amazing when you see this numbers and how much they want to spend. In fact I believe WPP has said that they will buy every single premium impression they can online there is just not enough of it, “said Mr. Peck.
Google Inc. (NASDAQ:GOOGL) is reportedly offering hefty bonuses to video producers on the YouTube channels to prompt them into signing multi-year deals for posting content exclusively on YouTube. The move is intended to block any potential move that Facebook Inc. (NASDAQ:FB) and other video startups may try to make on them.
“The round number from YouTube is somewhere around $4 billion of revenue that goes from YouTube to Google Inc. (NASDAQ:GOOGL). [..] If you can immerse an audience of a million two million three million people or so, the number of this CPM’s this $30-$40 actually justifies tens of millions of dollars being paid out to this producers,” said Mr. Peck.
Google Inc. (NASDAQ:GOOGL) is looking to cement its ads revenue which have reportedly topped highs of $45 billion this year more than tipple that of Facebook Inc. (NASDAQ:FB)’s $11 billion.
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