YouTube has reached 2 billion downloads a day, marking an amazing milestone for the user-generated video sharing site. The announcement from YouTube came as the company was celebrating its fifth birthday, solidifying its position in the recent web revolution.

And the reason for YouTube’s success? Being able to integrate itself with as many aspects of the changing trends for media consumption and sharing. The beauty of the early YouTube was its free video upload and storage, with a widget that can place the clip just about anywhere on the web. Latching onto the widget trend, YouTube helped drive a new concept around media-sharing.

From there, we saw explosive growth, plenty of copycats, and an interest from the mainstream media sector, for better or worse. The acquisition from Google gave YouTube some status, and the ads began to roll in. One way in which those ads will eventually generate revenue is through location-based targeting, which notes the importance of YouTube’s mobile push. You can watch any YouTube clip directly from your phone.

The video-sharing site has also taken to more social features and premium pathways. You can get recommendations based on your viewing patterns and social circle, and you can orient your entire YouTube experience from a social perspective. YouTube has also recognized the benefit of expanding its services, as it moves into generating interest in indie film production, movie rentals, and series archives.

While YouTube may have been able to win big in the popularity contest, its revenue generation still leaves something to be desired. Yet 2010 is expected to be the year for YouTube to reach steady profitability, giving the site another milestone to achieve before we reach December. The future of YouTube will be determined by the company’s ability to monetize the service.

As a widely used Google App, we’re sure to see further integration for platforms like Android, and other Google services. With location-based enhancements being added to mobile apps, we’re also likely to see YouTube develop out this trend. As far as ad revenue is concerned, the mobile industry carries a huge opportunity for Google and its media delivery. With additional personalization, we could also see YouTube create a series of apps (such as a bundle or rental package) that could be purchased across multiple channels (iTunes App Store, Android Market, Facebook, etc.)

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