On October 9th of 2006 (about 2 years ago), Google acquired YouTube.com for 1.65 billion dollars, their most expensive acquisition up to date. In the midst of last week, Google decided to turn this site into a major revenue builder by implementing their own system of PPC advertising they use on Google, onto the search results page of YouTube video searches, according to the New York Times newspaper on November 12, 2 days ago.

Personally, I feel that this will be quite an effective way of increasing profits. First off, Google will be doing this without making any major changes to the YouTube at all, other then where user’s videos appear (for example, if a user’s video used to appear first on the results list, and someone bid, or outbid that original person, the first person’s video would be moved down on the results list). For my second contention, Google is doing this without spending too much considering they will most likely be using the same basic system as they currently have on Google, just with some changes to make the basic system customized for the advertising they will be offering on YouTube.

While I do believe this advertising will shoot profits through the roof from YouTube for Google, I also believe it is an extremely effective way of marketing your video. To put it simply, it ensures the consumer that their marketing for their video is 110% effective and the consumer’s video is where they want it to be for their specified keywords on the search results page.

I can’t wait until YouTube releases this form of advertising the public. I know I will be checking it out, and possibly advertising some of my videos. I would love to hear your comments, and even experiences with past advertising on YouTube in other ways.