YouTube PPC… it seems like a natural progression that the googlers have applied the mega-successful Google Adwords algorithm and engine to their YouTube site.

And yet it came as a bit of a surprise to me.  Maybe it’s the timing of it because they’ve been talking about making more money off of advertising revenue from YouTube it seems like forever now and yet nothing major has been done.

They just released Google friend connect a couple months ago. And Facebook Connect recently came out. Maybe this is a response to the ever escalating internet arms race.

But make no mistake because this is major.

YouTube is the number two search engine in the world and assuming they’ve applied their Adwords model and algorithm to the site it should be a huge success and major boon to the Google bottom line.

Over 13 hours of video are uploaded to YouTube every minute and countless millions of searches for video content are done on the YouTube site every day.

So the ability to have sponsored video results at the top and along the right side are massive and I’m sure the googlers are going to take maximum advantage of it.

Ads have previously only been shown at the bottom of certain videos for those accounts who were publishers.

Will this be a return to the AdWords days circa 2004 may be even circa 2001?  When it was fairly easy to run AdWords campaign and get decent results unlike today where you almost have to optimize each page for one keyword same as you do for SEO.

In case you don’t know Google has blended their unpaid algorithm (and many of those factors which allow you to rank highly for a keyword) into their AdWords algorithm in the form of quality score.

So it’s a real hybrid doing pay per click marketing with Google and much tougher than it was just a couple years ago and prices have risen.

Facebook has a pay per click engine and I do know some people doing very well at this by demographic targeting.

But being able to target YouTube videos by keywords and paying per click has vast possibilities.  And the minimum bids are the same as the AdWords system but maybe some of the major keywords unattainable due to cost on google results would be affordable at $.10/click in YouTube results.

At least in the early days of Youtube pay per click. Once it catches on and marketers figure it out prices will rise.

Early adopters like you and me will get the benefit of ultra cheap clicks and conversions.

I’d recommend starting with them sooner than later because Fortune 500 companies who have been doing TV commercials will see this as an extension of TV and potentially cheaper.

So I anticipate the big boys getting in here very soon. Because unlike TV commercials they can easily track their ROI here and better target their commercials.

You do the math.

With video it’s theoretically much easier to get your powerful message across and connect much more with your prospect than a little classified ad showing on the side of Google’s results.

Plus you get the advantage of an interesting thumbnail image which will draw the human eye instead of just 25, 35, 35 characters on three lines of text in a Google ad and a URL.

So it seems you get an adwords ad with a thumbnail image.  At least I’m assuming the sponsor results will show similar to the regular YouTube results but the service is so new we don’t have any data yet.

Here’s how it looks when you’re logged into your youtube account and you click on ‘Get Started Now’ from the initial youtube ppc screen:

As you can see it is almost exactly the same as the adwords system. Also the minimum bid is the same $.10 per click.

And it’s cool when you put a number into the daily budget it auto calculates how much your max spend in a month would be. In the picture the maximum spent would be $600.

And then finally, if you’re already connected to your adwords account everything’s good. If not, as you can see from the pic below it will help you do so.

I wonder if the stats will show in your youtube account or be mingled with your adwords account?

For tracking purposes when I’m running campaigns I’d want them to be separate. If they’re mingled I suggest setting up a YouTube only campaign within your adwords account.

Let me know what you think and any info you have not contained in this article. Remember, the comments give a followed link back to your website.

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