Michelle McCree Computer Science 49SDiscussion Report The Acquisition:Google officially acquired YouTube in November 2006 for approximatlely1.65 billion dollars. Although Google officially owns YouTube, the two companies have decided to remain independent websites that still portray different images and goals for themselves. So Google Video and YouTube will continue to play their respective strengths in that Google will remain a company driven to improve the quality of search and YouTube will continue to remain a domain where people can go to watch, share, and upload videos at their leisure. Being that Video Search is still in it’s infancy and Google is striving towards becoming as comprehensive as possible as it evolves into a service where you can search the world’s online video content; Google’s acquisition of YouTube was simply part of their goal to bring the highest search results possible to their users. 1.65 Billion dollars may seem like an over rated investment but in fact YouTube has a lot to bring to the table.It is a huge database of continuously growing content, and also has tremendous potential to be a great source of income for Google. YouTube’s success has mainly been attributed to their slogan “Broadcast yourself”, and the fact that people can make and share their own video content. This attraction factor is solidified when looking at YouTube’s statistics. As of right now more than 65,000 videos are uploaded daily as well as more than 100,000 video streams daily. So obviously the traffic on the site is ludicrous, which is why it is seen as an advertisement attraction. Advertisement:More than 67 billion dollars were spent on TV advertisement in this past year. However, with new technologies and various studies/observations advertisers have begunto realize that there is no guarantee that the money they are spending on advertisements isproducing results. There are 2 reasons for this:1. They cannot assure that the costumers are actually watching the commercials. Whether they are not paying attention, fast forwarding through them with Tivo, orsimply switching the channel it is really difficult to target and audience and make sure they are watching the advertisement. 2. Since advertisers realized the lack of guarantee, they have reduced the amount of money they spend on TV advertisement, so 67 billion dollars is actually lower than the amount of money spent on television advertisement the previous year. When television advertisement decreases the quality of the TV shows decrease because they have less funding to hire good directors and actors, which then subsequently leads to a lower viewer percentage, which then again discourages advertisers from paying for TV Ads. So basically Advertisers are being turned off of Tv advertisement as a whole.Now in order for Google Video ( or YouTube essentially) to capitalize on this potential 67 billion dollar market, two things need to happen. First and foremost a business model needs to be created to convert YouTube from a fan site to an actual advertisement medium. Secondly, there would need to be a change in the world wide media economy. Instead of looking to the TV for advertisement, society would need to look to the internet. As the author of the Wired article discussed the line between television and internet would need to disappear.The main mode of advertisement discussed that could be implemented on to Google Video is Video Advertisement. There were several options as to wear to post the ad…- Pre- Video commercial: In this case there would be an advertisement shown whilethe video content was loading, so previous to the wanted video. The problem withthis placement of advertisement is that it could be seen as intrusive to the publisher of the video or even worse as a turn off to the viewer, because as of right now YouTube does not have any advertisements on their page. In the readingit is discussed how the typical 30 second commercial could be pushed down to 10 seconds to possibly be less of a turn off to viewers. - Post roll commercial: In this case the commercial would be shown after the video,which is obviously extremely problematic because there is nothing stopping the viewer from simply closing out the window.- Sponsored Videos: Done similar in style to the sponsored listings versus organic listings in the regular Google search results, except video infomercial, and or advertisements would be bidding for a particular Adword or positioning in the produced results. Difficulty being that it would be hard for Google to produce a quality score without actually watching the video. - Popularity based advertisements: Advertisements would only be posted on the most popular videos, and in that case more times than not The popularity of the video would void the annoyance of an introductory Ad. The down side to this is placement of advertisement is either the publisher or the advertiser, depending on who exactly is choosing the advertisement, could risk the possibility of being associated with content they don’t want to be. For example the most popular video could easily be a pornographic clip, which a lot of advertisers would not want to be associated with.Obstacles:So obviously one of the obstacles in implementing video ads would be the actual placement and methodology of the video on the website. Another problem would be who exactly would be making the decision about the Video advertisement.. If the Advertisers are choosing which videos they would like to post commercials on then essentially the publishers have no right in discussing what advertisements are associated with their videos, and on the other hand if the Publishers are choosing the advertisement, then maybe the advertisers are having their commercials associated with video content they donot like or not receiving the exposure they would like. So possibly there could be a shared approval between both parties regarding the commercial.Another problem that arises is who exactly is receiving payment from the advertisers. Obviously Google receives money, but the question is whether or not the publishers should receive money as well. Since it is the publishers’ videos that are popular, is it rightfor advertisers to gain a profit while the publishers simply receive popularity? This country is way to wealth conscience to let that happen. And if there is compensation to the video publishers there leaves the risk that there would be an uploading overload, not