Beet.TV Bulletin: Google Gobbles YouTube…Why is This a Smart Buy for Google? Forrester’s Charlene Li Has Figured it Out

By on 10/09/2006 11:02 AM @

The Wall Street Journal (subscription) just (4:25 PM EDT) issued an alert stating that Google has acquired YouTube for $1.65 billion. 

To understand the market dynamics of why this makes a lot of sense, get the download from Forrester’s Charlene Li.  She thinks YouTube has gotten it right in many ways, specifically as an advertising platform.  She says that YouTube has created communities around clips — a great enviroronment for contextual advertising.  She outlines some of these points in a recent post.

I spoke with Charlene about YouTube in Palo Alto in July.  She explains why the YouTube business model works.

Here’s the Valley’s Latest Zillionaire, Chad Hurley, Co-Founder of YouTube – I caught up with Chad at Stanford in July. 

BTW: Congrats to WSJ Google-beat reporter Kevin Delaney for breaking this story.  There sure were a boatload of skeptics out there in the blogosphere. 

Google Inks Big Music Biz Deal — In addition to the mega deal with just announced for YouTube, Google continues building alliances for more video content.  They just announced a big music business deal with Sony BMG Music Entertainment and Warner Music Group to distribute music videos.  The videos will be distributed both in an advertising-supported model and via pay-per download.  Here’s a report from The Financial Times.

Andy Plesser

, , , ,

Recent Videos
image
Branded Content Needs Measurement Strategy from Start

CHICAGO — Brands should development a measurement plan when embarking on branded content, says  Tom Weeks, SVP and Group Brand Director at SMG’s LiquidThread  in an interview with Beet.TV. Knowing what to count from the start can set expectations for branded content campaigns, especially when ...

image
Weather Company Pairs Marketers With Moods

CHICAGO — Weather often affects consumers’ moods, and that means it can impact purchase behavior, says DJ Reali, SVP MultiPlatform Sales at the Weather Company, in an interview with Beet.TV. As such, the Weather Company often looks to pair consumer data with weather conditions to deliver ...

image
Enhance the Experience, SMG’s Hoffman Advises for Branded Content

CHICAGO —  Placement on a site and or media channel is vital to ensuring branded content actually reaches consumers and can be viewed, says Jonathan Hoffman, President at ZeroDot/President Experience Design at Starcom MediaVest Group, in an interview with Beet.TV. In addition, brands should think ...

image
No More Ratecards? Sky’s West On Addressable Ad Pricing

LONDON — If every TV ad campaign can be individually targeted, what good is fixed ad pricing anymore? UK satellite and telco provider BSkyB, which this year launched its AdSmart addressable ad initiative, envisages a spectrum of prices for different advertisers. “The conversation has moved on ...

image
For News Video, Go Long: HuffPost Live’s Sekoff

For serious news video, forget Vine’s microscopic content, says the co-creator of Huffington Post’s live streaming video network, HuffPost Live. “The average video being watched on mobile devices is getting longer,”HuffPost live president and co-creator Roy Sekoff tells Beet.TV in ...

image
Branded Content Works Best for Awareness, Agency Execs Concur

CHICAGO — Branded content still plays best as a brand awareness tool, rather than as a direct sales driver, says Vincent Geraghty, EVP and Executive Director of Production at Leo Burnett, in a panel discussion for Beet.TV. “Purchase and sales is a tough thing. When you’re talking about ...

image
Video Not Ready For Programmatic Primetime: GroupM’s Wanck

Digital video won’t follow display down the “programmatic” ad-trading route until publishers are ready and willing, says one of GroupM’s digital division chiefs. “For video to truly become programmatic, the reach will have to increase, there needs to be more ...

image
Facebook Targeting A Boon for Marketers, Havas’ Social Lead

CHICAGO — Facebook is a marketer’s dream for video, but brands need to be smart about how to use the targeting, fan base, and types of video on the social network, says Len Kendall, Director of Social Marketing at Havas Worldwide, in an interview with Beet.TV. “Because of segmentation and ...

image
TouchCast Useful To More Than Just Publishers: Schonfeld

TouchCast, the interactive video platform co-founded by former TechCrunch editor Erick Schonfeld, wants advertisers to start using its new video format as an engaging new ad format. The startup counts broadcasters and newspapers amongst early adopters on the editorial side. “Their people on the ...

image
Brands and Distributors Should Look for Shared Goals in Branded Content

CHICAGO — When embarking on branded content, a marketer should consider what part of its story fits best in that format, Cristel Turner, Director of Brand Advertising, Strategy and Business Marketing at U.S. Cellular, in an interview with Beet.TV. “What doesn’t lend itself as easily to a ...

image
Ziff Davis Enjoying ‘Renaissance’: CEO Shah

When Vivek Shah took over at the helm of PCMag.com publisher Ziff Davis, the company was still recovering after emerging from Chapter 11 bankruptcy protection, continuing to sell off properties. If he says so himself, Ziff Davis under Shah may has turned a corner. “Ziff is probably one of the more ...

image
Comcast Sees Big Growth in C3 VOD Viewing

While TV Everywhere tends to dominates the chatter about non-linear viewing, many cablers are actively marketing and delivering viewers for their existing VOD services. Comcast, for instance, logged its 30 billionth program viewed on demand in the last year and has seen 100% growth in time spent viewing in ...

loader