If YouTube creators want to make money with their channel and they meet the requirements, they can activate video ads and share the revenue from those ads with Google. In order to monetize videos, a channel needs 4000 hours of public viewing in the last 12 months, 1000 subscribers and must comply with a series of policies. For example, advertisers can shop on programs such as YouTube Select, which allows them to purchase videos that are safe for the brand and for certain audiences. Although the company has started many other adventures since then, its business model is still driven by the sale of advertising pages on its services.
In fact, the company generates nearly 90% of its revenue through its AdWords program and other similar marketing adventures. One of Google's many claims to fame is that it has built its position as the search engine that conquers everything without advertising. Just a great product and word of mouth. As purchasing increasingly moves to the Internet, analysts expect advertising budgets to continue to shift from areas such as linear television and direct marketing to search.
The company mainly shows ads in commercial searches, meaning that about 80% of searches are not yet monetized through ads, according to Wedbush estimates. But while search engines like Yahoo were full of clumsy advertisements and mentions of the company's own products, Google simply had the company logo and a field to search for answers. The advertisement referred to by Chow, called “Parisian Love”, tells a story through a series of Google searches. Advertising in older media is becoming less relevant and, by dominating the world of search engines, Google has ensured that companies cannot do without their platforms.
According to Google's DV360 site, DV360 offers a unique tool for planning campaigns, designing and managing creativity, organizing and applying audience data, searching and purchasing inventory, and measuring and optimizing campaigns. In addition, when 1.2 billion searches are made worldwide through Google every year, it would be crazy not to partner with this company. My theory is that Google continues to protect its search product (which generates 97 percent of its revenue), especially as the market stops using computers and more and more people search on their phones, where they may not have the same muscle memory to type on Google before each query. Mark Mulligan, vice president and director of research at Jupiter Research, describes his plans as an attempt to reverse engineer as a full-portal player.
It succeeded as the world's favorite search engine because it was fast and simple to use. The problem, he argues, is that Google hasn't really been as successful outside of its basic search capacity. Instead of relying solely on its search engine, the company has pursued aggressive and innovative strategies ranging from operating systems to smart cars. Google's Super Bowl ad for its search engine was the best commercial of the night, as far as I'm concerned.
While Search and other properties account for the majority of Google's advertising revenue, its YouTube advertising business, which saw an increase of nearly 50% year-on-year in the first quarter, is making more and more money from advertising traditional linear television.