• Cnet News.com, Monday, July 21, 2008 11:45 AM

Google CEO Eric Schmidt continues his big talk about monetizing YouTube with little to show for it in actual dollar terms. Last Thursday, Schmidt acknowledged that patience was the key to finding a way to monetize the online video-sharing site. Once Google does, Schmidt expects "to hit the mother lode," Cnet said. "There will be new monetization forms," Schmidt said during Google's disappointing second quarter earnings call. "That is what we are seeking. That is the holy grail. When we find it, it (monetization) is likely to be very large because of the scope and scale of YouTube."

So far, Schmidt said that Google, having tried pre- and post-roll ads, is actually happiest with in-video ads that are embedded across the bottom of certain videos. "That looks like a winner," he said. "We've also had success with gadget video, and gadget video ads might be successful because they allow you to tell a story." Schmidt said not to expect this to be the last of the new Google's new YouTube ad formats. "We're working on revenue scenarios and newer product. I personally do not believe the perfect (YouTube) ad has been invented."

Schmidt also commented about Google's recently announced partnership with Lion Gate Films to show ads next to Lions Gate trailers and clips. "Lions Gate has good judgment that rather than sue those customers (they'll) show an ad," Schmidt said. "We think those kinds of models are sustainable."

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