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Billionaire investor and dot-com veteran Mark Cuban had harsh words on Thursday for YouTube, saying only a “moron” would purchase the wildly popular start-up. Cuban, co-founder of HDNet and owner of the NBA’s Dallas Mavericks, also said YouTube would eventually be “sued into oblivion” because of copyright violations. “They are just breaking the law,” Cuban told a group of advertisers in New York. “The only reason it hasn’t been sued yet is because there is nobody with big money to sue.”

In other remarks, meanwhile, the often-controversial Cuban also told advertisers that the reach of YouTube is limited, particularly when it comes to user-generated videos.

“User-generated content is not going away,” he said. “But do you want your advertising dollars spent on a video of Aunt Jenny watching her niece tap dance?”

“Somebody puts up something really good and you get, what, 60,000 viewers?” Cuban added during the event at Advertising Week in New York.

YouTube now offers advertising through banner ads, promotions and sponsorships. It has said it plans to roll out a range of different advertising options over the coming year.

Viral Campaigns are usually a waste of money

Cuban cautioned advertisers against investing heavily in so-called viral campaigns that are spread by users beyond their initial point of distribution on YouTube or other video sharing sites. But he touted opportunities to run commercials on high-definition television such as his HDNet network.

“What makes viral so special is it’s so hard to do. It’s so hard to plan. It’s hard to stand out,” he said, describing 99 percent of money advertisers spend on viral campaigns as “wasted.”

Point well taken. Advertising dollars spent on amateur videos? C’mon. The world is faced with enough mediocrity. Also, the new industry buzz word is “Viral Campaigns”. I have received many calls from start ups that claim they can exploit artist videos through clever marketing techniques that will result in brand awareness and exponential sales. Viral Marketing is beneficial to mediocre artists. They need all the help they can get. They can sell a couple of CD’s and make Amazon money. Next……………………………

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