This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google's YouTube Gambit

Google is and wants to remain the premier search destination. Regardless of the kind of content (Web-based text, books, video or audio), Google wants to be the one-stop shop for search, a strategy that is paying off handsomely judging by its stellar third-quarter earnings.

Why Google?

The Internet is fragmented, with content scattered on many sites. How do you find what you are looking for? You go to a search directory such as Google. What's the connection to YouTube? A big one. YouTube is the first stop for users' video searches and was beating Google in an emerging search category.

Approximately 45% of U.S. Web searches are conducted on Google, according to comScore Networks. (The site's global market share is even higher, topping 60%.) But 46% of video-related searches are conducted on YouTube, according to Hitwise. (Google Video, by contrast, has only 11% market share.) Why does someone need to search for a video on a directory like Google when so much great video content can be found in one place, on YouTube? And because YouTube hosts the videos, it can't be circumvented by another party.

Unlike the majority of the content on the web, videos are not yet widely distributed among many Web sites. While a typical search for information would start with a general search engine, followed by a vertical search engine and then a content site, a search for a video will start on YouTube and end there, because YouTube not only acts as a directory but also hosts the videos. Vertical search engines could be circumvented more easily as they don't own their content, so buying one makes less sense to a general search engine. For example, Expedia (EXPE - Get Report) is a directory of hotels and airline tickets, but so is Travelocity, Orbitz and many others. None of them own the airlines' and hotels' sites (which, by the way, are trying to encourage people to buy directly from them).
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EXPE $113.13 0.52%
GOOG $709.55 1.20%
MSFT $50.17 0.46%
TWX $74.62 -1.30%
YHOO $37.18 0.65%


Chart of I:DJI
DOW 17,686.22 +25.51 0.14%
S&P 500 2,050.14 -0.49 -0.02%
NASDAQ 4,710.2950 -6.7990 -0.14%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs