The buzz targeting program uses an algorithm (surprise, surprise) to determine which videos are about to go viral. YouTube says that “The algorithm looks at several factors, such as acceleration of views, favorites, and ratings activity, and then allows advertisers to target their ads specifically to these videos on YouTube.”

“Every advertiser hopes that their campaign will to be the next big viral hit online, and they come to YouTube to reach the millions of video viewers who are on the site everyday,” said Rajaraman. “Buzz targeting lets them do both at the same time. They associate their brand with the hottest content of the day, while reaching the most engaged users in our community.”

The approach should allow for greater advertising audiences—and thus, revenues—than the current ad targeting options employed by YouTube.

SAI points out a shortcoming for most of us trying to make money from YouTube: “the only videos YouTube includes in the algorithm are produced by ‘YouTube content partners’–largely professional producers of content from the studios, record labels and TV networks.”

However, on that note, a year ago YouTube began opening up the Content Partners “club” to selected users, and in December, they expanded this further, with open applications for popular UGC content providers in the US and Canada.

Naturally, there will be resistance to this type of advertising, just as there was resistance to YouTube’s overlay InVideo ads. What do you think—is this the wave of the future or is this sure to fail?

Comments

Buzz targeting, as it’s called, was launched in a less-than-subtle manner.  To paraphrase the press release’s introduction: "You know when Eric Schmidt talked about ‘best products’?  Well, this is one of those."

Buzz targeting may deserve the hype, though, as the statement continues, "The algorithm looks at several factors, such as acceleration of views, favorites, and ratings activity, and then allows advertisers to target their ads specifically to these videos on YouTube."

Aside from lower costs, it’s hard to imagine anything else that advertisers could want.  Perhaps buzz targeting’s test subject wasn’t too highly regarded – "The Forbidden Kingdom" received a freshness rating of 61 percent on Rotten Tomatoes – but then again, a better movie might have created questions about carrying its own weight.

Don’t look for buzz targeting alone to turn YouTube into a profit center.  Still, the new product’s sure to generate some interest, and should bring in more money, too.