YouTube TrueView Ads Launching Soon; To Boost Video Service Firm's Profits As Cost Per Click Continues To Drop

The famous video service provider on Thursday confirmed TrueView video ads, a mobile and desktop feature will be launched over the next few months. It basically lists some of the products shown in a video with an advertisement.

The ads will pop up after five seconds on the right-hand panel of YouTube just like video ad of Wayfair, an online furniture site on desktop, showing items from the ad like a couch or rug with their prices. On mobile it will appear vertically, the list of products will be listed below. The viewers will be directed to the product page on the merchant's site if they will click on the listed products.

It's primarily another way for YouTube to support advertisers market their goods, making the process hassle-free for consumers to learn how to purchase something they like, and boost YouTube's ad profits, something that the firm really needs.

YouTube, profited $4billion in 2014, it has more than 1 billion active users per month. it earned $3 billion in 2013, which means the profit increase is not much. Most of its revenues went on paying for technology and content on its backend.

It is critical that YouTube reach a status as the most profitable business line in the near future. Even though advertising is still responsible for most of Google's revenue stream, at around 90% , and ad profits are still going up, ad sales growth has slowed down over the last two years. In the meantime, Google's Cost Per Click (CPC) also pursues to drop, plunging 7 percent in the previous quarter alone.

Seeing alternative resources of profit is important for Google as it tries to offset slowing ad sales. Ad features like TrueView aren't enough on their own to balance out this slowdown in the short-term; however it's not the only growing business Google has.

For example, Google Play, has changed from an upstart industry for mobile phone apps to a media hub, which Citigroup analyst Mark May forecasts to increase from $1.3 billion two years ago to over $5 billion in 2017.