The real reason that Google bought YouTube
Today I will discuss a few things. First why did Google buy YouTube? We will analyse an article that has been published by CNNMoney. Second we will discuss a few domain terminologies: CTR
There is one question that has dominated the internet space ever since Google acquired YouTube two weeks ago. Why did Google buy a 19-month old internet site? Good question to ask any internet real estate specialist to answer you. According to the fortune editor David Kirkpatrick, Google acquired YouTube because of its belief in the staying power of conventional broadcast television and cable.
Google makes a lot of money online through advertising as evidenced by an increase in its third quarter earnings from a year ago which reflected on growth due to flourishing sales of search engine related searches. Total revenue for the third quarter rose 70 percent to $2.69 billion, up from year-ago revenue of $1.58 billion. Google is indeed the search engine king.
Many writers recently pointed to the obvious opportunity for a Google-owned YouTube to profit from placing video ads next to the 100 million video streams that YouTube claims users view there each month. That is surely one reason Google can justify paying so much money, but a closely-related reason may be even more important.
IMO Google’s acquisition of YouTube might prove to be one of the best investments made ever by the company. It will be surely interested to see how the ROI turns out by it is certain that it is making good $$$ from contextual ads already through Google adsense. The full article by David Kirkpatrick can be found here.
Terminologies
CTR: it is simply a ratio of clicks to the number of visitors to a website. Better definition still CTR refers to the number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.