Does Myspace and Youtube make money?
 

I'm assuming they make a lot. They have huge viewership and but also huge bandwidth costs. Are the profit margins large or small? Many on the board have said that mainstream converts better than adult.

are you crunk?

of course

Are the ads pre-paid, PPC, or combination? Anybody advertised on either for your mainstream projects?

no, google bought YouTube to lose lots of money

Ahh man that made me laugh out loud for real.

Mike33: Short answer is yes, they both make alot of dough. A HUGE portion of the online world's eyes are looking at those two sites and that equals big advertising dollars. :thumbsup

They have deals with all the big media companies beside all those google ads

they lose money of course =)

haha, exactly what I was thinking

Anybody know how the smilie advertisements work?

I see a banner for this site: http://smiley.smileycentral.com/down...mk571&spu=true

on myspace and other largely trafficked sites. The smilies are free. How do they make money and even pay for the advertising on such sites?

im am pretty sure both are losing money still...they would be more of a long term project, although myspace may be profitable by know...

YouTube has lost 20 Million dollars to date and they haven't even factored in their upcoming legal costs :helpme


YouTube is worth a lot to google however because they have advertising to push out. Rather than do what they did with MySpace (Pay for advertising space)...they spent a few more bucks and bought the whole shebang with YouTube.

YouTube's long term profitability though fully depends on 2 things:

1) If it survives the legal battle that is to come
2) If people still are interested in it when its all college kids uploading camera phone videos and not every obscure video that's ever been on TV. YouTube is already developing a technology to automatically sniff out copyrighted material from an exisiting database of media. The question in my mind is not...will youtube be able to make themselves legal. But instead it is...will YouTube be anywhere near as popular once it IS legal. If they can survive #1 then it will continue to grow in popularity. If they lose #2 then in my opinion is a HUGE liability asset for google.

The reason I posted this thread is because I recall threads months or years back where ppl were saying these sites were losing money and were propped up by venture capitalists.

I think youtube has increased advertising on it than before, but I don't know as I never frequented the site until a few months ago.

Sites like rapidshare.de seem to have small advertisements now whereas before I don't think they did.

The other thing is that click ads seems to be fine on text based sites, but I'm wondering how well they do on sites based around lots of videos. But then again, I've never done the adbrite type of advertising so I don't know if it's a huge money maker than I'm missing out on. Some videos for example on youtube are long. But then again, they use flash, which I'm told conserves bandwidth as well as loads faster than other video formats (?)

How do you know this figure? How about myspace? Is this info made public. Is there a place I can look this up. Excuse my ignorance on the matter.

:1orglaugh

in PPC and ads... they really earn ....

Youtube lost an average of $1mil/month in the last few months. Mosty bandwidth costs. Let's see if google can turn that around. My 2 cents says no simply because they're taking on a lot of projects that never get done.

That's a toolbar if I'm not mistaken...

I bet google ends up showing there video ads as intro's to the you tube movies..

Its been stated quite a bit. Here is an article that mentions it...

http://articles.moneycentral.msn.com...PrimeTime.aspx


I know that MySpace was such a bandwidth whore that it was losing money faster than they could print it. But as these companies get absorbed by media conglomerates their strategies become more refined. Their incoming marketing dollars go up while their cost per user goes down.

If there is one thing that YouTub really has going for it, it is the fact that video compression through flash will continue to improve which will then greatly decrease their bandwidth bills.

Personally, I think that GOOGLE bought YouTube not so much because they knew for a fact that it would be huge for their bottom line...but that fact is they have a ton of ads to serve and are always looking for new avenues to explore to keep their advertising clients happy. And with click fraud becoming a larger issue...one way to wipe out click fraud (or greatly minimize it) is to keep you network as much in-house as possible.

My :2 cents:

MySpace turns a profit not enough to justify the purchase cost by News Corp. There's no doubt they underpaid for MySpace, but the value isn't mainly in the ad revenue.

YouTube has yet to turn a profit and until it's sale was being kept alive by venture firms, primarily from the Bay Area I think.

And to those of you shouting all this uninformed crap about YouTube's inevitable impending lawsuit: it's not going to happen. A lot of the media is doesn't know what they were talking about and propagated this myth pretty fast. The guys and gals at Google aren't big idiots and wouldn't get themselves into that kind of trouble. This article should help explain why: http://www.slate.com/id/2152264/

I agree with you. The reason for the purchase is the large traffic base - even if its not making money at the moment, anywhere where there is traffic and lots of it, the potential for huge money is there. And if anybody can extract it, its a company with deep enough pockets to refine and find ways to get it.

no way they would still be online if they lost money...

you're very wrong. these type of sites are long term investments. may be years before they see profits.

do dogs shit where they aint supposed to?

there is no money to be made on the interweb thingie....

Advertising on sites like MySpace and YouTube is typically a PPM venture, not PPC.

Myspace yes

utube no

It's that simple. :winkwink:

That's what I heard. Haven't checked my sources though, since I don't have the dough to buy either.

yes they do

If they aren't concerned with have a lawsuit then WHY ARE THEY CURRENTLY DEVELOPING AN ANTI-COPYRIGHTED MATERIAL DETECTION SYSTEM?

no, but hes obviously fucking retarded and wasting gfy's bandwith by existing.

well, utube didnt get any profits yet, but as you know... google bought them, and paid tons for it...they are loaded now!

In order to help them make deals with production companies.

They've signed deals with Warner, Sony, Universal, NBC and CBS so far.

Myspace got a guaranteed 900 million from Google for search revenue to 2010 with possible upside if they make targets. News Corp bought the whole site for only 580million last year. Their bandwidth charges and overall expenses would be MUCH smaller than youtube.com.

http://www.ft.com/cms/s/17e8e67e-266...0779e2340.html

Even with this being the case...they are left with a fight 'em or join 'em decision. They are going to join them. But that doesn't mean they wouldn't have a law suit if they didn't take measures

they make a shitload... and having sites like that is POWER!

So we've established that MySpace makes a killing because they have much less bandwidth served than YouTube etc. YouTube on the other hand has lost millions since it opened but may actually be worth even more than MySpace because it's more popular.

Do you think google could make youtube profitable using unitrusive methods?

how could they NOT make money???

http://articles.moneycentral.msn.com...PrimeTime.aspx

I'm not sure why so many ppl are surprised that some popular sites may not make money.

It's like the 'successful' business that generates $10 million in gross revenue but has $9,999,999 in expenses. It happens.

They don't have to be profitable in monetary terms right now necessarily, but they're still a growing asset.

I'm pretty sure MySpace is making money and of course YouTube is making money, they just made $1.65 billion.

Of course! The owner of those sites obviously earn a lot from them.