According to an American newspaper, Google plans to link ads on YouTube to the data it has from users. For example, someone searching for vacations in the Caribbean might see ads from travel agents to that area.
This would allow advertisers to place more targeted ads on the video streaming service, writes The Wall Street Journal. At the moment, companies can already place targeted advertisements on YouTube, but the profiles of users are based on their activities on websites other than Google. By linking Google’s user profiles to YouTube, advertisers could target more effectively, the newspaper says.
It’s unclear whether only users’ search history will be used, or whether other ways Google builds profiles will also be used. Google also creates profiles of Gmail users, based on the contents of their mailbox. The new service may be rolled out this year, WSJ sources say.
Despite a billion users per month, YouTube is not making a profit. According to Google’s official figures, YouTube is responsible for 6 percent of the revenue, but the video streaming service does not appear to bring any money, writes The Wall Street Journal. Because the company has to pay money for copyrighted content and has to invest heavily in high-quality equipment to be able to stream videos, there is virtually nothing left below the line. The service is “about break even,” said a WSJ source.
Until three years ago, Google couldn’t combine information from users that it collected through different services. However, the company then decided to change its privacy terms so that it became possible. Profiling users in one service in order to offer them advertisements in the other was one of the feared scenarios at the time.