“Making YouTube profitable” was one of Google’s biggest goals this year. Although half of the year is already over, they have not yet managed to figure out a way to do so. The problem, it seems, is not with the users or traffic that is coming but how to monetise it. Although it seems probable and feasible to be able to make a large amount of money from YouTube, they have not yet been able to accomplish that.

Eric Schmidt, Google CEO said in an interview with The New Yorker, he had not lost hope though. He mentioned in the interview that he felt the website could lead to ‘the creation of a whole new industry’. He also revealed the two reasons for this optimism, one that the people are watching it, and two, they have the luxury of time to invest.

YouTube gets 129 million unique visits each month. Google hopes to expand into marketing territories, including the ads that exploit the popularity of online videos. Google revealed last month they were going to release new types of video based advertising in an attempt to monetise YouTube.

The search engine giant has already tested video ads in which a banner appears on the top of the screen during the playback of the video. The reactions to this have been mixed until now.