More Proof: Ads in User-Gen? No!

Hope dims for making money off YouTube's library of user-gen videos.

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More bad news for YouTube's money-making prospects came in the form of a new study from Ipsos MediaCT saying viewers don't want ads in user-generated videos even if those videos are free. Online consumers will tolerate ads in short-form content like music videos and news clips as well as long-form programming, like TV episodes, the study said. But they don't want ads in user-gen creations at all.

This is the latest piece of evidence underscoring that Web video creators will have a tough time making money off of user-generated fare. The Ipsos study also bolsters a recent finding from the Diffusion Group indicating that user-generated videos only claim 4% of online video ad dollars today, a percentage that will remain the same five years from now. The twin studies suggest that YouTube will have its work cut out for it as it tries to monetize the 3% to 4% of its videos that are partner content and therefore eligible for ads.
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