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Nov 2009

Full HD to make YouTube profitable?

Posted in Business tactics, News, Web 2.0 | 0 Comments

YouTubeHD-verticalGoogle’s much-publicised efforts to turn YouTube into a profitable entity may be nearing an end with the company announcing that 1080p full resolution HD videos are on their way.

Earlier this year Credit Suisse analyst, Spencer Wang said that he believed Google was on course to lose $470.6 million this year mainly because of YouTube’s inability to generate revenue from advertising.

Surely YouTube’s irresistable global presence is enough to make Google an absurd amount of cash via advertisements? Apparently not.

According to the advertising experts, it is YouTube’s video quality that is holding it back in the advertising world.

At a recent press conference that hosted some of the leading minds in advertising, CEO of marketing giant GroupM Interaction, Rob Norman, put it bluntly when he described the technical quality of YouTube, and sites like it, as “complete crap”.

Media agency executive Robert Davis of OgilvyInteractive viewed it similarly, saying, “If somebody put that on TV looking that way, they’d be fired…Why is that acceptable online?”

Last week YouTube blogged the news that should change all that.

“We’re excited to say that support for watching 1080p HD videos in full resolution is on its way. Starting next week, YouTube’s HD mode will add support for viewing videos in 720p or 1080p, depending on the resolution of the original source, up from our maximum output of 720p today.

As resolution of consumer cameras increases, we want to make sure YouTube is the best home on the web to showcase your content. For viewers with big monitors and a fast computer, try switching to 1080p to get the most out of the fullscreen experience.”

While YouTube’s announcement focus’s on the benefits for its users, there is no doubt they will be licking their lips at what the change will mean for them.

Advertisers have applauded YouTube’s latest move. After hearing the announcement, Mr Davis told Beet TV that “this is very good news for the industry”.

“As the visual experience becomes more satisfying, the greater the interactive potential becomes for brands ready to play in the content space. For years, we have been forced to build interactive experience around severely limited, technologically inferior video. Not any more.”

So YouTube has given advertisers what they’ve asked for. Now, can they turn this phenomenon into the cash cow it probably deserves to be?

Check out one of YouTube’s full HD videos below

Or click through and watch the Official Toy Story 3 Teaser Trailer in HD

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