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Jun 10, 2008

NEWS: YouTube's Self-Serve Ad Deal Terms. Got 670,000 Views?

Ed: Google, Apple, Facebook, and AOL lever their online distribution to help Long Tail affiliates make money. Microsoft and Yahoo have not. LinkedIn, Blogger, Wordpress should take notice.

Revealed: YouTube's Self-Serve Ad Deal Terms. Got 670,000 Views?

youtubead.jpgBig announcement from the weekend: YouTube (GOOG) will allow creators of videos to sell their own ads on the site, rather than accept whatever ads YouTube is able to sell.

In theory, this is a pretty big deal for video creators, and makes YouTube a much more attractive distributor for pro and semi-pro video producers. Sites like blip.tv and Viddler already allow creators to sell their own ads. But since this is YouTube, producers get a much bigger audience to sell, potentially allowing some to tap bigger brand advertisers than they otherwise might. YouTube takes 45% of the revenue, compared to a flat $5 per thousand on blip.tv.

A source tells us YouTube is requiring that do-it-yourselfers sell ads for at least a $15 CPM, which is what YouTube generally gets for the stuff it sells itself. That's a lot less than the going rate for professional content -- like CBS's broadcast shows that it distributes on its Audience Network -- which can be $25 or more. It's also less than some niche Web video content targeted at verticals like mothers or car buyers. But it's a lot more for Web content without a targeted niche. The popularAskANinja, for example, sells for a $12 to $13 CPM.

Also, YouTube is demanding that anyone participating commit to selling a minimum of $10,000 (paying Google no less than $4,500) per campaign, which comes to 666,667 impressions at a $15 CPM. Over time, that's an easy hurdle for a lot of YouTube producers. But the key here is time. To put it in perspective, only four videos from YouTube's partner program cleared that bar of 670k views over the past week, and this video was one of them. After a month, only 44 videos had accrued at least 670k views.

We also hear some YouTube producers are busy thinking of ways to game the system. Specifically, report a $15 CPM on a $25 CPM sale and pocket the difference. Want to read YouTube's fine print? We have a copy of the contract below:

YouTube_Content_License_Agreement_Provider_Ads_2-5-08[2] - Free Document Templates

With AIM 6.8, AOL begins revenue-sharing plan

from CNET News.com | Tech news blog by 

AOL plans to launch a new program called AIM Money on Tuesday that lets programmers write applications that run in the AOL Instant Messenger buddy list--and lets programmers get a cut of any resulting revenue.

The move is made possible through use of an open interface in AIM 6.8, ...

Getting Set for the iPhone App Department of iTunes



One factor working in the iPhone developer community's favor is that Apple so far hasn't asked to share in the potential ad revenue. And for applications sold by subscription or with a one-time download fee, developers will keep 70% of the money, more than they usually get when wireless service providers feature their applications on other cell phones.

Based on Bailey's estimates, download fees alone will line developers' pockets with nearly $34 million this year and $280 million in 2009. That's impressive growth compared with other segments of the mobile application market. For example, U.S. sales of personal productivity applications such as health-monitoring tools, currency converters, and to-do lists are expected to increase just 19% this year, to $285 million, according to consultancy IDC.

Since Apple will be taking a smaller cut than distributors of applications for other mobile devices, many App Store downloads may be priced cheaper than comparable versions for rival platforms. Lingolook's iPhone application, for instance, will likely retail for $4.99, vs. $5.95 for the BlackBerry and $7.95 for the Windows Mobile versions. Yet rival mobile applications retailers don't see the App Store as a big competitive threat. "The issue we've had is building awareness to the end customer that you can use your phone to do all these things," says Bill Stone, CEO of Handango, a leading online vendor of mobile applications.

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