from ScientificAmerican.com
We all know by now that Google bought YouTube for $1.65 billion — now all they have to do is figure out how to make that investment pay for itself. Part of that is figuring out what metrics to use when measuring YouTube's reach and output — and according to comScore Media Metrix, that metric is all about streams.
Though counting hits, pageviews and unique users is a good indicator of websites, with YouTube one visit can obviously result in the streaming of umpteen videos, to which most obsessive LonelyGirl15 fans can no doubt attest. YouTube hit the 100-million-streams-per-day this past July, generated by 6.2 million visits. Ergo, market share of visits doesn't necessarily result in market share of streams. Says
Andrew Lipsman, a senior snalyst at comScore Networks which generated the study: "One visit might result in only one video stream being viewed, while another visit can result in 20 video streams being viewed." Going by streams, YouTube has 9% of market share and Google has 1% - so with the YouTube buy, they've increased their marketshare tenfold. Considering the untapped ad revenue — and considering Google's massive 92% profit jump this quarter just from search advertising — and its clear that Google wasn't plunking down that cash in vain, though of course that's under-the-couch-pillows change for them.
Two points of note: Yahoo, which had dismal results this quarter much in the way Google's were off the charts, had 11% of streamers in July 2006 to YouTube's 9% and snared 21.4 streams per user, beating by a hair YouTube's 21.2 (so close!). But it's MySpace that was the clear winner with a solid 20% of streamers viewing 39 streams.And thus Rupert's $500 million investment remains a giant, ginormous bargain.
