Article Archive by Sonya Wood

November 26 2008

Google Announces YouTube Sponsored Videos

by Sonya Wood

Google announced earlier this month that YouTube Sponsored Videos would be their new advertising program. We have heard the talk of Google expanding its reach and its “drill baby, drill” efforts. This announcement is just another example of how Google is introducing more ads on its properties, and in the process gaining more of our advertising dollars.

YouTube Sponsored Videos will allow users to surface their videos on YouTube, the third most visited website on the internet. You can create your video, choose keywords, enter your budget and maximum cost per click, write an ad and then pick your video to be served on YouTube. You can even use your Google Adwords for billing. Best of all, there is no minimum spending requirement and you will only be charged on a CPC basis.

Now, most of you are asking yourselves, “Why should I pay for a YouTube video when I can upload them for free”? There are several reasons why paying to have your video displayed on YouTube is a good idea. The most obvious reason is that by having a sponsored link, your video will be more visible and easier to find. According to The Official Google Blog, these are 13 hours of video uploaded to YouTube every minute and it can be difficult to ensure your video will be seen.

Many advertisers are already experimenting with YouTube Sponsored Videos and are taking advantage of the prime real estate being offered at low costs due to limited competition. Others are still hesitant to pay for something they can get for free. Well, if you are a current Google Adwords advertiser you are probably are doing just that. You do not have to pay to be on Google’s natural or organic searches, but you still pay to have sponsored listings. According to, competitive mix allows advertisers additional visibility when surrounded by competitors. In other words, everyone wants their name to be more prominently displayed than their competition.

If you decide to give YouTube Sponsored Videos a try, don’t forget that your video needs to have a strong call to action and a reason to follow through with that call to action. For example, at the end of your video, you might invite viewers to visit your website for a free download, more information or percentage off purchase.

With nearly 63 million US-based visitors in October 2008, there is no doubt that YouTube is the frontrunner in online video. Until now, advertisers have chosen from banners, rich media and in-video formats priced on a CPM-basis. With the roll out of YouTube Sponsored Videos, advertisers can benefit from most of the things we, as Google Adwords users love; CPC-based pricing, targeting capabilities, and of course more visibility.

November 13 2008

Can MySpace Capitalize From Its Popularity?

by Sonya Wood

The time has finally arrived. MySpace, the social media phenomenon, launched its self-serve advertising platform last month. With an overwhelming 78% share of the top searched terms on the internet, according to Hitwise, I say, it is about time. The big question now is, “Can MySpace monetize from its immense popularity?”

MyAds lets marketers quickly and easily create ads and serve them on MySpace, potentially reaching millions of customers. Just like any typical pay-per-click program, MyAds allows users to create an ad, select a target audience, choose a budget, and even track your results. 

Similar to Facebook Ads, MyAds lets advertisers tap into the MySpace network based on interest, demographics and location. MyAds currently allows display ads only.  Create an ad with pre-built templates and Flash tools or upload your own. You can choose between 728×90 or 300×250 ad unit. Facebook only allows text ads. MyAds operates on a cpc basis, while Facebook gives the option of cpc or cpm. There is no activation fee; however there is a minimum budget of $25 and a minimum cpc of $.25. Advanced hypertargeting technology is another feature that sets the two social media giants apart. MySpace builds out a profile for each user based on what they do on MySpace over time. With 1200 different ways to categorize each user; advertisers can target very specific groups with particular interests in a geo-targeted area. Facebook’s targeting capabilities are limited to what information the user actually enters.

There is no doubt that users are familiar with MySpace and spend a lot of time there. Now that advertisers have the option to reach this expansive network, MySpace is experiencing dramatic results with average daily revenue of $140,000 – $180,000, all within 3 weeks of launching! According to a recent article in TechCrunch, this advertising platform is poised to be a $50 million a month business. MySpace CEO, Chris DeWolfe believes this will be a significant revenue source. Some even estimate that MySpace revenues for the fiscal year ending in June 2009 will reach $1 billion. So, the question remains, can MySpace continue to capitalize on its popularity and the massive audience it attracts by monetizing its success?…only time will time.

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