NewTube and the Advertiser Canard

Okay, last post on NewTube. Got one more thing to get off my mind before I drop this darn subject. Advertising.

In a nutshell, I don’t buy the arguments people make about advertisers’ fondness for NewTube. On CNBC tonight the reporting leading into my segment cited Cisco and others already making commitments to the new YouTube-alike platform. The implication was that major advertisers, who have balked at YouTube, are jumping on this unlaunched thingie, and that somehow represents a kiss of death for YouTube.

Bullshit. Recall, major advertisers didn’t jump all over Adwords in its early days either, with much of that advertising experiment — No-one will wants ads beside search content! — paid for in its early days by dot-coms, small businesses, and others who couldn’t afford the entry prices to traditional media. Now, of course, search marketing is everyone’s favorite medium, keyword prices have escalated, and the small fry who drove the business originally are being driven out.

Why won’t the same thing happen with YouTube and its ilk? Say the P&Gs stay away in droves. Fine. Prices stay down, and the kinds of advertisers who are now priced out of search ads show up on user-generated content, whether pre-/post-roll, or text ads alongside. They want impressions, and if those impressions come from being viewed alongside a video of a cat vomiting, so be it. It’s impressions, and they’ll get lots for little money.

Eventually, of course, the currently prideful and elitist major advertisers will figure this out, and ad prices on YouTube et al., will be bid up, but that’s fine, part of the natural evolution of the market. So, forgive me if I don’t fall over in a faint at news that NewTube has signed up Cisco as an advertiser. Who cares.


  1. What are the odds that Cisco is paying in trade?