YouTube falls short of Google's expectations

Ad revenue from YouTube is falling short of parent company Google's expectations, according to a newspaper report.

Citing 'two sources familiar with the mater' The Wall Street Journal reports that the video sharing site is likely to generate $200m (£101m) in ad revenue this year.

The paper also reports that Google also 'significantly cut' the number of YouTube clips it will sell ads against, to ensure they are not being sold alongside videos that may violate copyrights.

Google and YouTube are being sued for copyright infringement in two cases involving YouTube and a second suit where the lead plaintiff is the English.

Google only sells ads against clips posted on YouTube that are approved by media companies or other partners, which represent just 4% of the clips on YouTube, a source said.

Much of the remainder are user-generated clips where rights are uncertain and where advertisers may be nervous about placing their ads against videos of unknown origin.

To counter faltering ad revenue, Google also plans accepting pre-roll and post-roll ads to run before or after some YouTube clips.

The WSJ reported that Google North American ad sales chief Tim Armstrong has been scrutinising YouTube's ad sales system and that he and his colleagues had identified 105 problems with YouTube's ad sales, again citing one source.

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