YouTube Gets On Content Producers Who Are Inserting Ads

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YouTube is telling some of its content producers that they are in violation of the site’s terms of services by including product placement and commercials within their videos. The reason for this is that YouTube is trying to make money with its own advertising, and advertisers typically don’t want to have to compete with other ones, particularly when they are paying and the others aren’t.

YouTubeMediaWeek reports that YouTube has issued written notifications to producers who are doing this, and telling them they are not to do so without YouTube’s permission. MW’s Mike Shields writes:

The subtle implication is that YouTube could yank down these users’ videos if it so chose. But the bigger issue is that the Google-owned video giant needs to monetize as much of its content as possible. And as more brands engage in the practice of paying popular video bloggers to integrate their products into videos—rather than purchasing advertising on YouTube—Google needs to find a way to balance its revenue needs with keeping its most prolific talent happy. Officials said the company will soon announce a new formalized process for branded integration videos.

"We have a policy, and if we discover they are embedding stuff we will definitely let them know," YouTube’s Tom Picket is quoted as saying. "We have tried to take a more hands-on approach to see if we can facilitate deals. But they shouldn’t be fearful of getting booted off the site."

It will be interesting to see if YouTube is able to turn the new formalized process into a successful moneymaker. YouTube is trying more and more monetization methods. Recently, the site has even begun experimenting with a Hulu-like model.

YouTube Gets On Content Producers Who Are Inserting Ads
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  • http://youtubemarketmeltdown.com Christine

    This has been very interesting and it was very informative.

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