Google’s Estimated Revenue from YouTube UGC
User generated content is not easy to sell. It seems even YouTube is struggling with selling ad space, although Google is experimenting with several ad models on its video social networking site. AlleyInsider follows the embarrassing story of estimates here:
Mary Meeker from Morgan Stanley estimating YouTube ad revenues (assuming that 1% of the videos go with ads):
Yesterday: $720 million. ($720 thousand using same assumptions and correct math) (CPM calculated as per one rather than per thousand)
Today: $75 - $189 million (using new assumptions). (CPM calculated as cost per mil correctly)
Proposed correct calculations by Silicon Alley Insider:
Monthly Video Streams 2,000,000,000
Percentage With Ads 1%
Videos With Ads 20,000,000
CPM $20
Monthly Gross Revenue $400,000
Annual Gross Revenue $4,800,000
Partner Share 85%
YouTube Share 15%
Google’s Net Monthly Revenue $60,000
Google’s Net Annual Revenue $720,000
Google 2008E Net Revenue* $16,400,000,000
YouTube Contribution 0.00%
via VentureBeat