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Why Google bought YouTube November 23, 2006

Posted by Al in : interesting,Internet,website , trackback

Did you ever wonder why Google bought YouTube? After all they already had Google Video, so did they really need another video sharing site? Especially one that cost them $1.65 Billion – that’s a lot of money for a website. Well the answer to why is, of course, money. But not immediate money, instead this well-written article suggests that Google have been incredibly forward looking and have foreseen the demise of TV, and in particular TV advertising. And when that goes – when everyone has Video On Demand and has Personal Video Recorders built into their TV boxes, or indeed the TV’s themselves – then there will be an awful lot of advertising revenue floating around. And one thing the web is very good at is personalising content, which means that adverts can be accurately targeted to their optimum audiences – something that Google has been working on for the last couple of years through it’s AdSense program. Once the current establishment realise how this is going to work, the audiences they can target worldwide and locally, and the accuracy of that targeting, then I think Google will become a serious competitor for the largest grossing company on the Internet, in the Technology market and possibly worldwide. They already make over $9 Billion per year, and this may rise dramatically with mainstream advertising revenue. And to earn this income they have very little outgoings – so if they don’t become the highest grossing company, I can see them becoming the most profitable company of all time. Google will rule the world.

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