The Cycle

Google announced this week that it’s FINALLY for YouTube videos. Just what users have been waiting for! The ads will run on the bottom fifth of the video that a user plays, resembling news feeds on the bottom of screens. Users can either click the ad to see a fuller version, or click to make it go away.

Nobody except Google shareholders are really clamoring for more ads, but this move was inevitable ever since Google bought YouTube for a hefty $1.65 billion. As one analyst told the New York Times:

“Today, YouTube is a sunk cost for Google,” said Darren Aftahi, a securities analyst with ThinkEquity Partners. “If they can couple the proper advertising with the proper content, there is a tremendous opportunity for the company.”

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