EON

With the daily increase of advertisements across the internet, many internet giants try to benefit from advertising their website for advertisement revenue. This revenue can be either allocated by linking to affiliate sites or by getting commissions from any purchase done through that advertisement. Google is considered the biggest internet advertising giant with a daily net profit of $2.1 million.

Recent unnamed sources at Youtube, a major internet video sharing database, stated that big media companies will be given a cut of the advertisement revenue from Google if their videos are published, regardless of the identity of the publisher. TechCrunch, a technology blog, also reported that Google will expand its program, where it allows big media companies to advertise their videos, by the end of the first quarter. This deal came as a solver of many problems since Youtube had a long and contentious relationship with big media companies and some, like Viacom, have actually sued Youtube for letting people host unauthorized copyrighted content on its site. This deal will definitely benefit both Youtube and the big media companies as they are offered an olive branch for posting their copyrighted content like many other media companies, like CBS, that already sell advertisements for videos hosted on their channels as well as videos singled out by YouTube’s Content ID system that recognizes copyrighted content.

This advertising program is part of a larger effort done by Google to control content posted on YouTube in an attempt to turn YouTube, the web’s number 1 video site, into the “cash cow” that many once expected it would become after acknowledging that Google was struggling with difficulty to earn significant revenue from YouTube. Giving big media companies the capability of selling their own advertising, for videos that they post as well as others, on a site visited daily by millions, will surely aid them to improve profit for their produced content. And of course, this deal will also benefits Google that will be getting a share of these advertising revenues.

This program was also accompanied by the announcement made on Wednesday by YouTube which stated that it will be expanding its click-to-buy program to viewers in Spain, Germany and Netherlands after previously offering it to U.S. and U.K. only. This program uses embedded transparent overlays in the videos directly linking to its media partners in order to buy the product rather than just posting Amazon links on the bottom of the video page.