Monday, July 17, 2006

Monetizing YouTube and MySpace's monster Traffic

While YouTube is continuing to break it’s own traffic records, this week announcing that they have hit a milestone of 100 million videos served every day and MySpace has hundreds of millions of users, and ridiculously high monthly traffic. They both provide proof that traffic just isn't enough anymore. Can these companies find a way to monetize these millions of mouse clicks or are these highly talked about start-ups just more Silicon Valley one million-click wonders?

In recent months, YouTube has experimented with Yahoo and Google text-based ads, and last week it launched a banner ad campaign for Disney's “Pirates of the Caribbean: Dead Man's Chest,’’ (financial details have not been released). News Corp. has only been able to sell a few banner ads for MySpace and that problem is further compounded by the fact that they don't even get the lucrative blue-chip brand advertisers to buy those banner ads despite the fact that its member demographic is the young and malleable crowd after which marketers lust. Links: 07/16/06 - YouTube serves up 100 million video per day, 07/12/06 – How will YouTube make Money, 07/14/06 – Is there Money in MySpace

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