User-generated content may be what has made Google (GOOG) what it is, but it isn't going to be what sustains it.
As one report says, at this time "3,000 professional producers and 70 independent channels" are where Google is running their newly-launched overlay ads.
Googles' response is overlay ads aren't necessarily the best way to market on amateur content. I'm starting to wonder if there's any reason to market on amateur content. The risks are so much higher, and the headache of going through the seemingly endless amount of junk material doesn't seem to make it even worthwhile pursuing.
Some may say the sheer number of amateur videos make it worth the effort, but I'm not so sure it is. I could see the type of extremely edgy type of company marketing to young people as a possibility, as they're not as picky about what they watch and the branding of the product with the video shown.
But overall, the amount of professional and semi-professional content is increasing online, and it shouldn't be too long before there's enough to supply all the marketing needs of companies. They've said in the recent past that it isn't the lack of advertising, but lack of qualified content that has held back their marketing efforts.
I think the online video monetization model will be placing advertising with professional or semi-professional content, with the exception of unique companies that may not care what their content is put up against.
The area I think has a lot of promise for the majority of those Web content creators is in the semi-professional area. Even the big media companies are dumbing down their video to make it have that type of look. That is what viewers are looking for at this time.
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