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Google Pushes Advertising on YouTube

22 Feb 2010

GILLETTE has become the first Australian advertiser to launch pre-roll advertising on video content on YouTube following the company's renewed push into display advertising as reported in The Australian.

Google acquired YouTube for $US1.65 billion in December 2006.

At the time, local pundits predicted Google could come from nowhere to be a top-three player in the Australian online video advertising market within six months.

Whilst it has taken longer than expected, according to Shailesh Rao, regional boss of media and platforms; YouTube is "building towards a really viable business".

The comment echoes global Google chief Eric Schmidt's comment that Google is pleased with the direction in which YouTube is heading, although it is still believed to lose millions of dollars a month.

Schmidt has said that display advertising is the company's biggest opportunity.

Last week, he appointed Barry Salzman as head of media and platform for the Americas, charged with overseeing all non-search advertising on Google's content network of third-party sites and YouTube as well as its DoubleClick ad serving products. Rao has a similar role in the Asian region.

In Australia, Google says YouTube, which has 6 million local users a month, is "monetising millions of views each week" through banners, search ads, click-to-play video, banners, leaderboards and rich media formats sold to advertisers.


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