Business Matters: Google Says 'Gangnam Style' Video Has Earned Over $8 Million

Make that twice in a row PSY's "Gangnam Style" video has been mentioned in a Google earnings call. During Google's fourth quarter earnings call Tuesday afternoon, Google senior VP and chief business officer Nikesh Arora said, "Outside estimates say... ['Gangnam Style'] has generated over $8 million in all-in advertising deals."
As of today, the "Gangnam Style" video has been viewed 1.23 billion times. That works out to about $6.50 per 1,000 streams, implying "Gangnam Style" has been getting premium advertising rates (no surprise there). That's "a fair average" for a video like that, according to an online video executive speaking on background. The rate could go above $10 per 1,0000 streams when pre-roll advertisements are served but $6.50 per 1,000 could be achieved when high-value advertisements are averaged out with lower-value advertisements, the source says.
The mention of "Gangnam Style" was related to a statistic Arora tossed out just minutes earlier: across YouTube, search, display and more, Google's top 25 advertisers now spend an average of more than $150 million per year. Arora seems to now have a regular spot on Google earnings calls. At some point after Google co-founder Larry Page's introduction and before analyst's questions, Arora will highlight important topics and accentuate them with impressive statistics.
The previous mention of "Gangnam Style" came in October when Page called it an example of the future. "Just flip a switch and get worldwide distribution, almost without doing any work," Page said. "That's how we see the future. YouTube is going to be available everywhere."