Despite one billion video views on most days, YouTube hasn’t been popular with big corporate advertisers. Worldwide revenue from YouTube ads has fallen short of Google’s expectations this year, and is likely to total about $200 million for the full year, according to reports in the WSJ.
YouTube is heading Google’s campaign to extend its advertising reach far beyond text ads tied to Web searches, its revenue powerhouse. But Google Chief Executive Eric Schmidt has acknowledged that the company hasn’t yet found the best formats for video advertising. Most blue chips are nervous of their ads appearing next to amateur content.
Copyright litigation has also complicated the YouTube ad push. Viacom is suing Google in connection with clips of television shows and films posted without authorization by YouTube users.