How is youtube profitable

Wise Guy
Soldato
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Looking at the top channels, they all seem to be stuff only teenagers and the developmentally disabled would be interested in, celebrity gossip and things. Then a few are aimed at Russians and the like.

Nobody who would want to watch that crap has any money surely? Teenage girls, the mentally retarded, and Russians aren't exactly known for their spending power. How the hell does youtube make money off adverts when most of the people watching them basically have no spending power? You think someone watching "Smosh" is going to drop 45K on a 2014 Grand Cherokee??
 
With normal TV, you might have the mom or dad in the background partially watching it while they are cooking dinner or whatever. That's why they advertise washing powder or maybe even a car during kid's shows, because mum is probably in the vicinity. But with youtube that isn't happening.
 
You have to get all the way down to #80 (Vice) to find something even nearly interesting (and they sold out all their best content to HBO anyway). And Vice is mostly watched by hipsters with no money anyway.

You have one of the most amazing information dissemination systems ever developed... and it's 99% celebrity gossip, pop music, video games, and pranks.

This planet needs eugenics so badly.
 
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There was a mention about the rise of on demand video and internet advertising last night on Bloomberg West with the gorgeous Emily Chang.

How internet advertising on FB is now more sophisticated and Twitter advertising is just getting started.

Also how new video content providers like Vice are expanding.
 
Do you mean how do the people who advertise make money? Youtube (google) doesn't care who it takes cash off.

perhaps there's some sort of forward-thinking involved. A teenager is going to be driving in a few years time. Brainwash them young and when it comes to getting the parents to pay for a car then they will be asking for a jeep. A year or so of watching the same advert must have some long term effect
 
The power of advertising.

Is that like the power of house prices?

I think the profitability expected from all these adverts are grossly over-estimated, right now it's propped up by the stock market. But when you think about who is actually watching these adverts you have to wonder.
 
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Spending power or not, it's the clicks/views that matter to them.

the power of adblock no more adverts on youtube videos :D

You are the problem!

Doesn't stop Google giving me around ~£90 each quarter though :p
 
Doesn't matter the content, they just want something to pull in the most viewers, which is usually crap that 10 year olds and the mentally deficient would watch since they form the majority on the user base.
 
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