I asked my family at dinner the other night what they would say to this statement: “Time Magazine has included YouTube among the most colossal tech failures of the decade.” I must admit I got some weird and intrigued looks. The statement doesn’t seem to resonate with people, that YouTube has been unable to post a profit. Google, the owner of YouTube, paid an outrageous amount of 1.65 billion (U.S) for the company. Of course with hopes that this internet company would be posting major advertising profits. The question becomes how has arguably one of the most accessed websites / market shares in the world not been able to post a financial profit? The answer is two-fold:

  1.  Companies do not want to necessarily be linked to “edgy” videos on YouTube
  2. 70% of YouTube users close the video when an advertisement pops up at the beginning.

So whats the answer? In my opinion advertisements need to be placed on people’s YouTube channel. Why? Well the reason again is two-fold:

  1. Companies will understand what type of content the YouTube channel holder normally puts up
  2. People who go to this channel will be willing to watch an advertisement before the video due to the fact that they want to see this specific person’s video.

Look at Shane Dawson for example. A well-known and watched YouTube video maker. His fans are avid fans and would without a problem watch a 30 second coke commercial before they see their YouTube hero. How do I know this? I asked one of his big fans, my brother and he said he wouldn’t care about the precluding advertisement.

Yes, that is a small sample size (1 person) and everyone is different but that’s the point. As of right now they are losing money and they have to do something. I would argue less that 70% of people will close the channel if an advertisement precludes someones Youtube channel.

Maybe I am wrong, but its a thought. We all want YouTube to stay around so it’s in everyone’s best interest for these corporations to figure how they can most effectively brain wash us with their advertisements, but then again that goes against everything YouTube stands for.

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