Ad Execs: YouTube Shows Promise, But Nowhere Near TV Yet

Executives from popular video search and ad companies said at the RBC Capital conference late last week that user-generated videos—like those on YouTube—aren’t drawing any significant dollars from advertisers or agencies, according to CNET News. “Advertisers need to control their brand, and it’s seen as too risky to give up that control on a network with home videos or potentially pirated broadcasts.”

That could be a major impediment in turning the current $1 billion Web video advertising business into something more akin to the $50 billion television advertising market, the report said. Some execs don’t even think that’s possible, though.

“[YouTube] will be like instant messaging. It’s ubiquitous but no one makes money on it,” said Thomas Wilde, CEO of Everyzing, in the report. Others were more upbeat, though. “I don’t think it’s going to be a $50 billion business, but it’s going to be a more efficient business, one that’s targeted and relevant,” said Brandon Berger, an executive at MDC Partners, at the show.

(Image credit: Clipart.com)

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