Everyone hated ads on blogs too... years ago. Believe me, I know. I wrote an ebook about how to make money blogging years before bloggers were making money. "Blogging isn't about money," people wrote to me. Countless emails like that. Now look around today.


So are ads in video now bad too? Jaffe seems to think so. In fact, he calls this move by YouTube "dumb."
Perhaps, I certainly respect his opinion, however I don't have to agree with it.
I'll argue differently. Aren't we simply resting on the cusp of another big technology swing (like when blogging emerged)? I think so. Online video is going to be bigger than blogging, by tenfold. Right now it's raw, uncensored and untouched (until recently) by the dreaded "ads". Just as all new things are when they first emerge.
But just like any medium, the ads will find a way to work themselves in. From the guys who are working to show you an ad while you're fast-forwarding your Tivo-recorded program, to the other guys who sold an ad for a local dry cleaner in your pizza box cover. Ads are always going to be there. I think everyone gets that.
YouTube didn't do this to make money. If you look at the numbers in this, the projected revenue they can earn from this is very, very small compared to their net worth and gross revenue. Nope, this ain't about the money.
This is about being first. And continuing to be #1.
YouTube/Google holds the world's largest collection of advertisers in the palm of their carpal-tunneled hand. Were they going to let 100 other competitors eat away at their client list by offering something they didn't want to offer?
The answer is no.
Will this cause a small, insignificant defection from YouTube? Yes, so small nobody would ever notice. Will this entice even more people to post their videos at YouTube in the hopes of earning a few bucks? Yes, and way more than the people that defected.
Google isn't dumb Joseph. Look back at this in a year and tell me they are. I don't think you will be able to.