YouTube is taking a page out of Google's book and hoping that search ads can bring the video portal's revenue up to its parent company's standards. YouTube is the second largest search engine online, trailing only Google, but its advertising revenue comes mostly from homepage ads and video campaigns, formats that can only rake in so many dollars before profitability levels out.
However, more revenue might come if the online video giant can court small advertisers that will use self-serve tools to bid on keywords, according to Ad Age.
In October, promoted videos were integrated into Google's AdWords, showing advertisers how they could expand their campaigns onto YouTube. Additionally, YouTube offers a tool that lets advertisers target specific content and demographics.
Search ads on YouTube work a bit differently than those on Google, which could be one reason for YouTube's slow start on revenue. While Google search ads aim for click-throughs and conversions, YouTube's search ads come in video form, which may or may not induce viewers to click.
