YouTube began it’s quest at making money by introducing video brand advertising on the site. YouTube has been placing movie trailers on the site for a couple weeks now, but yesterday launched the model of having a “Brand Channel”

They started this off with Paris Hilton, who will do videos exclusively for YouTube. And since Paris Hilton can’t spit out her gum without Entertainemtn Tonight and Access Hollywood covering it, this is a pretty good move for YouTube.

The channel is also sponsored by the Fox TX show, Prison Break. This is interesting because Fox owns the YouTube rival MySpace.

This could be a good move for YouTube. It’s an interesting way of providing revenue, without interrupting the videos of members. But, we will see if they stick to their guns as traffic increases, along with expenses.

Here is the problem, this is a business that must grow, so they hire a lot of people. Despite their efforts, most of the people will not “get it”. There will be quarterly meetings about how to make more money, and someone will always bring up ideas like more banners, or ads before the videos. And they will be able to back those ads up by some insane revenue numbers. And eventually they will be calculate how many users they will actually lose, and they will find the numbers work. But that will be the beginning of the end. But, I hope YouTube can shake the trend here and keep this type of original advertising model going. The market is ready for new ideas in the video space, so I hope to see them take advantage of it.

This entry was posted on Wednesday, November 8th, 2006 at 10:47 amand is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.