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Oh, and YouTube is Good for Advertisers
Over the lunch hour I played squash with a buddy of mine who continually ribs me for the "Why I'd Short Google" post, now that Google's sitting at $450/share. (I like to point out that if you search for "short Google" we're still getting natural search traction, to which he says, "Yeah, because you're the only one talking about shorting the stock." Touche.) He and I were talking about what YouTube does for Google's advertising model.
For Google the YouTube acquisition is transformative from an ad model because, unlike the search product where Google's job is to keep you in front of advertisers for the shortest time possible, GoogTube's job is to keep you there for as long as possible. That's a gigantic difference in corporate religion for Google. As a result, I think you'll find that agencies who focus on brand metrics will -- or should -- transfer dollars from paid search to YouTube because the latter translates better data to those measurements. Paid search advertising dollars are better suited to lead generation or direct e-commerce transactions. Paid search has always been problematic for brand metrics. So, now YouTube offers a new model for Google to legitimize brand advertising dollars.
So, short Google? Am I taking it back???
Let's wait and see...
Posted by Andrew at October 23, 2006Web Results eNewsletter
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