Still think Google buying YouTube was a mistake?

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It wasn’t that long ago that some commentators still considered the $1.65bn YouTube acquisition one of Google’s bigger mistakes.

On the day YouTube release their 2013 “Rewind” news breaks that YouTube advertising revenue will surge 50% to $5.6bn in 2013.

Some quotes from the FT coverage:

YouTube, acquired by Google in 2006 for $1.65bn, has more than 1bn viewers every month and attracts about a fifth of all advertising spending on US online video.

Advertisers will spend a projected $5.6bn on YouTube in 2013, an increase of more than 50 per cent on the previous year, according to a report that underlines a shift away from traditional television ads.

The sharp rise, which follows an explosion of viewing on mobile devices , comes as advertisers strive to reach younger consumers who have drifted away from television.

YouTube does not keep all of the advertising revenue that flows through its site, paying much of it to partners and “content creators”.

Television’s share of advertising budgets has peaked after 30 years of growth and online video is now competing for ad spending.

As an aisde though, with the increase in quality ad content, I can’t understand why YouTube doesn’t allow you to hide the ‘Skip Ad’ button on the pre-roll ads.

YouTube Skip Ad button doesn't want to go away
YouTube’s ‘Skip Ad’ button which so many click at the earliest available opportunity, yet obscures increasingly high quality content.

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