Will Google use Runner to monetize YouTube?

Published on July 21, 2008

Will Google use Runner to monetize YouTube?

Original author: Ernst-Jan Pfauth
  • Transfer
A few weeks ago we wrote a sarcastic article about Google’s attempts to gain popularity in Russia. Local search engines, Yandex and Rambler, dominate the market, which naturally did not suit Google. So, from the first week of June, the search giant launched an outdoor advertising campaign in Moscow, which was regarded as a step of despair. Today, Google took a much more serious step by buying the Russian contextual advertising service Begun for $ 140 million from Rambler.

The most likely reason for the deal is to gain access to more than 40 thousand advertisers and 143 thousand sites, but could there be a second, more important reason? Maybe this acquisition is associated with the Spaghetti Project - Google’s plan to monetize YouTube.
A month ago, the Runner presented a solution for contextual advertising in videos. On June 30, the Runner integrated contextual advertising for video on the Rambler.Vision community. Since this month, 1.3 million visitors per month can see this ad. Tag-based advertisements are sold on a CPC basis.

This experience can be useful when Google integrates video ads on YouTube.
YouTube desperately needs an advertising strategy. Last week, the Wall Street Journal published an article based on two anonymous sources about YouTube’s inability to create a successful advertising model. Video giant shows 10 billion videos a day, but receives only $ 200 million from advertising. Therefore, they say in a publication, Google can launch pre-roll and post-roll commercials on YouTube.

Now do you see the connection? Not only Google will get the Russian market, but he also acquired a company that knows how to make money from advertising. Google will gladly welcome these guys in Silicon Valley to turn Youtube into a profitable business.

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