Nike, Warner Bros., MTV2 and Dimension Films are just a few of the big-name marketers that have begun to advertise on YouTube.com, the hot new property that allows people to post and share their homemade videos, USA Today writes (via MediaBuyerPlanner). Those advertisers can easily upload short commercial clips, such as one of a major soccer star wearing a pair of new Nikes. The Nike clip garnered a nice bit of buzz, and consumers began emailing the video to friends and embedding it in their profiles on social network sites.
To date, the video has been viewed more than 3 million times, and the only cost to the advertiser was that of making the digital video. Uploading it was free. But some advertisers are seeking more formal arrangements, hoping for featured content. E Networks and YouTube, for example, have struck a deal for YouTube to feature certain E program clips.
When YouTube formally launched in December, users watched 3 million videos daily. Today that number stands at about 40 million.
It expects some ad revenue in the first half of this year, but is cautious about serving advertisers without turning off its users. "We want to be sensitive on how we deal with that," says CEO and cofounder Chad Hurley. "Because we really are a community, we want to build things for our users and not alienate them."