The Google and YouTube Marriage: What it Means

I'm kind of sick of hearing about the Google/YouTube acquisition.

Yes, I know. Another uber-success story of two twenty somethings who just cashed in on a gazillion dollars on a site they built in their apartment with a few developers. That's real nice.

Despite my acerbic tone, I commend the founders for their product innovation and consumer foresight. The end result of their hard work ... a pretty darn addicting site which has very high entertainment value.

Right now, Steve and Chad are probably at the plane dealership saying "does that GulfStream V come in Google blue."

Being acquired by Google is not a bad thing. You could have worse parents (think Microsoft). What did Mr. Hurley and Mr. Chen get .....

... the most recognizable brand name in technology, top notch technical talent, and sprinkle that in with loads of financial resources.

It will be interesting to see how Google mashes YouTube up with the current Google business model, if at all.

The execs at Google are wondering and scheming ...

How do we leverage/monetize the 35 million users, the 100 million daily video views we just bought for $1.65 billion.

Is it a pre and post roll play?

It's HAS to be much more than that. Otherwise, Google could have invested in their own video offering to do just that (just minus the audience, big assumption). The incremental opportunity lies in integrating some type of sponsored text ads into the video experience. This comes down to relevancy and targeting, Google's core competency (their secret sauce).

How much are those clicks worth now that you have a highly engaged consumer? Do you cross market a product/service based on previous click streams and that video? (i.e. behavioral targeting) Are these consumers THAT more ready to "transact"?

I don't know the answer to that.

I think it depends on the content. Quality content drives quality eyeballs/quality clicks.

I am curious to see how this merger impacts the world of paid search.

Clearly, a new channel has been born via this acquisition and Google will be putting their best and brightest on task to figure out the optimal way to capture more advertising spend here.