eMarketer senior analyst David Hallerman is skeptical of the pre-deal statements from YouTube executives that the site will not insert videos into the clips. Right now, advertising on YouTube is banner and text advertising. Whether video ads will be inserted remains to be seen, but David believes that Google made the acquisition to maximize the advertising opportunity of the YouTube world. He has a vision of how this might work.
He says that inserting consumer brand advertising into homemade video clips will not be appealing to all marketers. So, he envisions a scenario where consumer generated content draws an audience, but the monetization is made by presenting professionally produced content with video ads inserted. These videos would be presented in an environment that mixes professional and CGC video.
David predicts that Google will make many deals with television networks and various video content development companies. Business Week just published an article on this topic by Jon Fine.