- YouTube has purchased mobile video startup Directr, hoping that its tools will draw in small business advertisers.
- Currently, Directr offers SMBs low-cost tools to develop video — but YouTube plans to offer those tools for free.
- The idea is that lowering or eliminating the cost of producing video ads will level the playing field a bit for SMBs and will inspire more to invest in video advertising that might have otherwise been outside of their budget.
While YouTube has been noticed mostly for going after big TV-style advertising dollars, it shows good strategy that the video service has its eyes on SMBs, as well. Not only will this help keep innovation in the medium alive, it should also bring in a new stream of revenue for the service. With more companies looking to challenge YouTube's leadership spot, like Yahoo, the Google-owned site needs more revenue streams.