Google has been trying to find a way to monetize Youtube - and I think they just nailed it. They’re calling it “sponsored videos.” It sounds very similar to the adwords model. A user who wants instant visibility can place a bid on selected search terms. Then when a viewer enters a search query, their video shows up under the sponsored video category. Whether or not their video shows up depends on how much their willing to bid for the keyphrase and likely some form of quality measurement.
Why this should succeed: This is very analogous to the SEO/PPC model in Google. If you want INSTANT visibility on the top page, you have to pay your way there (i.e. PPC, aka sponsored results). Organic listings, ESPECIALLY front page listings, take time to achieve. Anyone who wants their video seen now, whether it be a Fortune 500 company or a tiny garage band trying to get their music out there, can seize this opportunity for high visibility. Youtube previously existed solely on the organic model, but now users have options. If they want it now, they can get it - if the price is right
Here’s an example: If you’re a garage band with a 90’s grunge sound, you should bid on the terms “Nirvana,” “Smashing Pumpkins,” “Mudhoney,” “Sunny Day Real Estate,” etc. This way you can directly target your potential listening audience.
Another potential issue: Will people click on the videos? Only time will tell. My money, however, is on it that they will.