YouTube may have officially graduated from being a repository of user-generated videos of wedding dance failures and cats acting like humans.
It's been roughly eight months since the Google-owned video-sharing site spent $150 million to create its own original programming, partnering with Hollywood studios and a host of big-name celebrities, and it sounds like things are going swimmingly.
The Wall Street Journal reports that YouTube has already made back its full investment in the form of advertising commitments from the likes of big spenders such as American Express, Unilever and Procter & Gamble.
YouTube declined to comment on the ad revenue it has generated from its nearly 100 new original channels, but clearly the company is pleased. Almost a dozen funded YouTube channels currently average more than 1 million views per week.
Sources told the Journal that some advertisers are paying similar rates to YouTube as they do to Hulu, a content site that provides access to popular, more well-known network television programs. Google recently decided to invest another $200 million to promote YouTube's top-quality content.
The video site's recent success may spell bad news for cable and satellite providers, whose margins are already being cut by content creators demanding larger programming fees. The expansion of sites like YouTube and Hulu may give further credence to speculation that some consumers may eventually cut the cord altogether.
Google's Latest Buy (Ad Age)
Google scooped up four-year-old social media marketing software maker Wildfire Interactive for $250 million plus performance incentives.
Dendreon Makes Cuts (WSJ)
Seattle-based biotech company Dendreon has announced plans to cut more than 600 jobs as part of a company-wide restructuring plan. The cuts represent more than 40% of Dendreon's total workforce.
J. Crew Headed East (WSJ)
J.Crew is giving the Asian market one more chance. The U.S. clothing retailer, which backed out of Japan years ago, is scouting a new location in Hong Kong and several more in mainland China.
Differing Accounts (Detroit Free Press)
Forget that botched $300 million soccer deal. General Motors' former marketing head Joel Ewanick may have really been let go for failing to deliver promised market share gains.
JWT/OgilvyAction Names CEO (Ad Age)
The joint venture of JWT/OgilvyAction has named Sheila Hartnett its new chief executive. Hartnett was previously CEO of OgilvyAction North America.
Cheil Americas Expanding Reach (NY Times)
Seeking a greater western presence, South Korean ad agency Cheil Worldwide has purchased U.S. rival McKinney for an estimated $250 million. McKinney will become part of Cheil Americas but will keep its name.
Buzz Around the Office
Momma's Boy (Washington Post)
A New Zealand kayaker received a two-second penalty in the Olympic slalom on Sunday by a strict international judge – his mother.
List of the Day: Body Language Counts
You made it to the important meeting. Great! Now don't mess it up.
1. Take a seat at the table, not along the wall, and spread out.
2. Take some notes, not too many.
3. Make eye contact and nod occasionally.
(Source: The Daily Muse)