The video-sharing website is to blame for the decline

Apr 24, 2015 09:47 GMT  ·  By

Shortly after Google revealed its quarterly results, people were quick to notice the decline in the company’s ad prices, many claiming that the cause of the drop was the fact that Google is trying hard to make money from mobile.

However, the Wall Street Journal reports that in a conference call with analysts, Google’s financial chief, Patrick Pichette, reported on the matter, saying that the decrease in the cost per click was actually due to the development of their video-sharing website.

In other words, YouTube is to blame for the 7 percent drop in ad prices, compared to the previous year.

Pichette said that significant gains from the website lay at the basis of the unexpected fall, much bigger than what analysts had foreseen. According to him, the skippable ads on YouTube videos have started to grow on people, and they willingly decide to watch them.

Viewers are into the TrueView ads

Ever since these ads were introduced, viewers have expressed their discontent at having these impediments staying between them and their favorite videos, but Google representatives now claim that people have gotten so accustomed to them that they prefer watching them all the way through rather than waiting for three seconds before continuing to the video.

He also declared that, unlike search ads, video ads are not directed towards people who are actively looking into buying something - which is kind of obvious since people click on a YouTube link because they want to see that video, not because they want to purchase something – and that this is why the price is smaller for the latter category.

To dismiss any sign of threat coming from Facebook video, Pichette also expressed his enthusiasm for how well the YouTube business is going, saying that they are pleased with the website and that it played an important role in their quarterly advertising revenues.