![]() Google has started to woo marketers as it seeks a bigger slice of television ad budgets for YouTube. Online video advertising is considered one of the most promising sources of future growth for Internet companies. As traditional online advertising matures, the search giant is exploring new ad models to generate revenue. YouTube, one of Google’s most prized assets, has been slow to monetize. Google, which bought YouTube in 2006, is now aiming to attract advertising dollars by bringing slickly produced content to a platform that once featured mostly amateur videos. Some of the more popular content makers rake in six-figure annual revenues, she said. Subscriptions across YouTube’s hundreds of video game channels tripled in 2013 from 2012, according to Erica Larson, head of industry, media and entertainment-gaming at YouTube. This has sponsors and potential buyers excited. How Disney monetizes Maker’s online video network and whether the deal would affect the prospects of PewDiePie and other content creators remain to be seen.īut gaming content on YouTube - anything from reviews and video of gameplay to unboxing of hardware - is undoubtedly drawing a disproportionate number of eyeballs, given Zefr’s assessment. Time Warner Inc’s Warner Bros has bet heavily on gaming-focused network Machinima by participating in two hefty funding rounds. Last year, DreamWorks bought Awesomeness TV, a YouTube teen network, whose videos offer everything from beauty tips to life advice, in a deal that could total $150 million if it reaches certain earning targets. Lingering questions about their profitability have not deterred investors. ![]() Meanwhile, online video production outfits such as Maker have grown into million-dollar operations over the past couple of years. Two of the 10 most-subscribed channels and four of the most-viewed channels on YouTube are gaming channels, according to Zefr, an online video marketing and rights management company based in California. Video gamers, who spent more than $70 billion last year on hardware and software, have gravitated to YouTube. His channel has more than 25 million subscribers who can view his content for free, more than Beyonce’s and President Barack Obama’s channels combined. ![]() The success of the 24-year-old, with his profanity laced improvisational videos, matches the explosive growth of video-game-based channels on YouTube. PewDiePie, whose real name is Felix Kjellberg, is Maker’s biggest star. Just last week Walt Disney Co agreed to fork over as much as $950 million to buy Maker Studios, one of YouTube’s largest production and distribution networks. PewDiePie’s uncanny trendsetting talent highlights the potential that content related to video games holds for Google Inc as it looks for ways to build its YouTube video platform into a powerful new revenue stream.Īdvertisers and media companies are indeed already placing big bets on the likes of PewDiePie and others creating gaming-related content in a bid for the prime but underserved audience of 18- to 34-year-olds that devour video games. “It’s incredible that YouTube personalities are coming up. ![]() PewDiePie, who is not paid to endorse the brand, “really helped us in terms of getting traction on a much larger audience,” said Min-Liang Tan, chief executive of San Diego-based Razer, which makes gaming hardware. REUTERS/Shohei MiyanoĮach time the wildly popular YouTube impresario has donned Razer headphones in one of the many zany videos that feature him playing games, the product has sold out. Visitors stand in front of a logo of YouTube at the YouTube Space Tokyo, operated by Google, in Tokyo February 14, 2013.
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