In 2006, YouTube was purchased by Google for $1.65B and has been the leading video sharing portal ever since. YouTube is currently the 3rd most visited site on the Internet, sitting behind Google and Facebook, respectively.
Most likely surprising to many, YouTube only makes up 1% of Google's total value. Search ads and display ads bring in a lot more money for the firm than YouTube's video advertisements.
YouTube plans to make big changes that will affect its social media footprint in attempts to bring in more revenue. Currently, YouTube does not allow for its users to sign into the website via different social networks. YouTube will most likely spread its online presence by integrating its user accounts with platforms such as Google+, Facebook, and Twitter.
With over 800 unique monthly users, YouTube has the opportunity to utilize its international presence with
better advertisements strategies. The United States is the top market for YouTube, with India at the second spot. Outside of new strategies, breaking into new markets, such as Europe and East Asia, will also help increase ad revenue. YouTube officials say they plan to double their ad revenue with no specific timetable for achieving this goal.
Among the social changes to YouTube, there are plans to improve its current commenting and sharing applications. Currently, YouTube has an outdated system that tends to be very one-sided. YouTube is looking to make it more of a two-way street in terms of better communication and interaction between both viewers and video creators. Needless to say, Google+ will most likely be a large part in this new social atmosphere. Google+ is an innovative platform that promotes excellent social communication.
Another revenue builder will be the new YouTube Live. Users can now stream live video on the site which hopes to bring all sorts of content creators to the site. YouTube Live is slowly being rolled out to the general public, but has yet to be available to all users. Publishers of this content will be able to create live streaming ads, as well as pay-per-view ads. This will be a big push for YouTube's increased revenue goals.
YouTube has a complete stranglehold on the online video sharing market, but as so many social businesses learn (i.e. MySpace) there is never time to get complacent and a company must push to innovate at all times to stay atop the curve.