Google's YouTube purchase
YouTube didn't invent online video, but the portal that's responsible for millions of hours of wasted productivity is now synonymous with streaming entertainment. As the site grew and attracted more attention, established web giants like Google and Yahoo! made concerted efforts to join the web entertainment action with their own video offerings. But the small start-up maintained its supremacy and even managed to further distance itself from the competition. When Google announced its acquisition of YouTube late in 2006, it didn't necessarily represent capitulation. Rather, it signaled a new stage in the growth of online video for audiences, content creators and even marketers.
Why it's important:
- Google is working hard to offer advertising within YouTube videos. In April YouTube announced that it plans to experiment with the length, form and placement of ads by launching the service this summer.
- Context will be key. Google/YouTube will need to assure clients that ads are being served with the appropriate content and to the desired audiences.
- DVRs have wreaked havoc on the formerly linear format of TV. Understanding audience behaviors online makes deciphering time-shifting look simple in comparison. How will users react to advertising? Will they pay attention or just tune out?
