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YouTube Needs Bigger Bait To Attract Big Fish

Billions of Internet videos everywhere. But for big TV advertisers, there's little to watch -- and buy.

Turns out the new digital age still has some snags for traditional TV marketers. One of the biggest is a problem that still exists in the traditional TV world -- finding the right video to run against to advertiser your products.

Turns out that Google's YouTube YouTube has a problem finding appropriate videos for advertisers to attach themselves to -- pre-roll and post-roll. As a result, Google says, the user-generated video destination won't hit its goal of $200 million in revenue this year.

Other problems slowing revenue include back-office snags limiting the quick access to video/programming that TV advertisers are used to with traditional linear television.

No matter. Video purveyors expect continued big revenue growth for all online video -- as the audience for user-generated and other content still grows, especially since Google and others can target its viewer behaviorally and, it believes, somewhat better than traditional linear TV.

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It seems advertisers still have their priorities -- even if they're somewhat behind the times, according to some analysts. Just look at this year's still vibrant traditional TV upfront market, which posted high single digit price increases across virtually all major national TV platforms.

Pundits have predicted the upfront advertising market would grind to a halt as far back as a decade ago. But it still thrives. Why do marketers still cling to the past? Despite the growth of emerging digital media, more people are watching traditional TV than ever before.

That said, some major TV advertisers will look to find ways to cut their media costs, especially with TV network digital media players who are charging $40 to $70 per thousand 18-49 viewers for Internet versions of shows -- two to three times that of the CPMs on traditional TV.

Does YouTube charge the same amount? Answer that one amongst yourselves.

YouTube's other problem is one of approved traditional TV content. You know, someone puts up an unofficial version or clip of "The Daily Show" or "The Hills" or "The Office." Those big advertisers aren't interested in that stuff -- especially when they can get the legal versions elsewhere.

Google has made its mark by showing how millions of other small advertisers can use the power of digital video and content. But the quicker way to bigger ad revenues naturally comes with those bigger fish.

Google needs bigger bait, while big TV advertisers still need to eat.

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