Building on our discussion of online advertising

This from Reuters yesterday:

YouTube will need at least two years to start making a meaningful contribution to parent Google Inc's revenue, despite a clutch of advertising initiatives this month aimed at cashing in on its online video dominance.

In the last eight days the popular video-sharing site has launched four new ad formats, signed its first full-length video pact and even taken its first dip into e-commerce.

Executives described most of the revenue-generating initiatives as experiments or beta tests, but analysts said the long-awaited moves will increase Google's revenue, though not in the near-term.

Google rakes in about $5 billion in quarterly revenue, mainly from Web search advertising. Though Google doesn't break out YouTube's revenue, analysts estimate it will make $200 million to $250 million -- a small percentage of the parent's revenue -- this year.

online news and relevant advertising

I was thinking how news Web sites can make the advertising showing up on their Web pages relevant to their users.

It is hard. When we see an (full screen) ad on a news Web site like the other day in class, what we did was to look for the x button. We do not like being interrupted by advertising, especially irrelevant ones. But making advertising relevant to a specific user requires sufficient knowledge of that specific user. We rarely give out adequate/true information to news Web sites. This is where portal sites such as Yahoo, AOL, and especially Google can gain a great chunk of the pie. They profile their users.

Here is a post describing with google phone, how google will profile each individual user precisely. Another thing not in the post but I saw on another youtube video is (unverified info) when a user use google phone to take a photo and with 3g network, the phone tags the current location to the photo automatically. 

Anyway, as we see in class on Monday, google devotes 70% of its effort to search and advertising, 20% to something and 10% to the rest. No wonder google news does not have a user friendly interface, yet. It's probably not yet on the to-do list. As we see google plans to start digitizing print newspapers, I do think google has an interest in news, or an interest in constantly updated information. With it devotes 70% of its effort to search and advertising, when they profile each individuals precisely, would the combination of the three make most users use google news and make most advertisers reluctant to spend money on any other news Web sites? 

Google does not produce any news products. Will there be new business models or partnership between google and a news organization? similar to the partnership between google and t-mobile for the google phone?