Has Google Finally Figured Out How to Monetize YouTube? I Think Not..

Published by on October 8, 2008

So Google purchased YouTube, and it cost them $1.6 billion. How much have they made off the deal so far? Not much.

Estimates put the CPM value on YouTube at $1. So that means your video has to be viewed 100,000 to make you $100, and 1,000,000 views, surely something that sounds pretty big only yields you $1,000.

The Sarah Silverman video which people are proud to say has received 7 million views has only netted YouTube $7,000. Pretty much chump-change in the video space.

So what is Google’s master plan?

Affiliate Links for Music and Merch!

The lifeblood of most music sites, affiliate links to Amazon and iTunes will soon be adorning YouTube videos everywhere.

Now users will be able to download their favorite songs instead of listening to and watching them for free on YouTube!

The Small Pieces May Add Up

While this certainly won’t spell any major revenue for Google, I think it’s a step in the right direction. With Adsense, Google was able to tap into the local markets and bring all of the long-tail online.

Starting with just affiliate links, I think YouTube has the opportunity to bring on smaller revenue generating pieces that together will make YouTube valuable.

So are you going to be purchasing any songs after watching videos on YouTube? …Yeah, me either, but somebody will!