Google has announced its genius solution to conundrum of how to get a return on its $1.6bn purchase of YouTube in 2006. They have decided that the current rate of £25,000 a day for homepage advertising on the video sharing site is too cheap! And so they are putting the daily advertising rate up by 28% to £35,000. Genius! OK, so they are making the homepage advertising options a little more interesting with expandable videos and potential full homepage takeovers but really, is this the best Google come up with?
Homepage takeovers and sponsorships are going to be the last thing on brand advertisers minds in times when return on advertising spend is more critical than ever. Surely a more innovative and flexible advertising solution would have been a better option and attracted a broader range of advertisers rather than the few who are willing to fork out £35,000 for a days advertising.
The success of the latest Facebook and MySpace solutions is built on the fact they are flexible and accessible to all. There are thousands of businesses out there who are dying to tap into the social media masses and they now can, through the latest Facebook and MySpace platforms. This will keep the two networks going in a time when large budget advertisers are tightening the purse strings. Who is going to be buying a £35,000 homepage takeover on YouTube when times are tight?
Unfortunately Google have dropped the ball with this one for me, it wouldn’t surprise me if they were heading back to the drawing board in 6 months time due to a lack of uptake on their latest proposition.