YouTube Ad Count Stable Despite Weakening Environment -Piper Jaffray

December 10, 2008 2:12 PM EST

Piper Jaffray is out with a research note on Google (Nasdaq: GOOG) following a recent survey which suggests that YouTube has maintained a stable amount of ads on the popular site. The firm maintains its Buy rating and $416 price target on Google, also keeping it on its Alpha List.

The firm recently viewed YouTube's 100 most popular videos, observing the frequency and type of ads on each page. Piper found out that about 30% of the videos observed on the Google site appeared with some form of ad, with about 63% of the ads coming from "in video" ads. The data suggests that Google's usage of in video ads is increasing.

Piper points out that while many other large players in the display ad space have indicated a weak environment recently, Google has managed to keep YouTube's ad level stable.

Lastly, Piper mentions that YouTube currently makes up less than 1% of Google's revenues, but sees this growing closer to 1% next year.

Google, Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers.


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