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Media

Google (GOOG) Uses Bad Video To Get Better Results

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By Douglas A. McIntyre Published
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Google (GOOG) will begin to allow advertisers on its AdSense network to use selected YouTube videos in their marketing messages. This is a big jump from the simple little text ads that do so well next to search results. But, the video program may not do any better, and it could produce results that are not as good.

Google would like to find a way to make more money on YouTube. It did pay $1.6 billion for the property, but getting advertisers to spend a lot of money on the video sharing site has been tough. And, big media companies have been upset that their premium content is sometimes found on YouTube, posted without their permission.

So, Google’s new program will allow advertisers to take content from 100 video partners and run clips along with ad messages on the search company’s large ad network of websites and blogs, according to The New York Times.  It seems like a good innovation.

The program has two potential problems. One is that the video quality of most YouTube content is pretty poor. How many marketers want to use crummy video in their ads? The other issue, the one that is more important, is the Google’s text ads do so well for marketers that more complex video ads may simply bomb.

Back to the drawing board.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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