As YouTube’s advertiser base diversifies, so too are the objectives brands have for homepage ads placed on the popular video platform.
Branding has dominated past advertising efforts on YouTube. It’s not very surprising when you consider the fact that media companies — such as movie studios and music labels — have long formed the bulk of YouTube’s advertiser base.
However, YouTube’s ad clients are diversifying to include more consumer-packaged goods, direct-to-consumer, and financial services brands, which means YouTube has had to accommodate a broader spectrum of ad objectives.
Ads with a branding objective — such as promoting an upcoming TV show — declined from a 91% share of ad objectives on YouTube in the second quarter of 2012 to 71% in the second quarter of 2013, according to Macquarie, an investment bank.
Direct response ads — which are intended to drive sales or traffic to a brand’s website — accounted for just 6% of ad objectives last qu! arter, b ut some variable combination of direct response and branding accounted for 23% of objectives among YouTube advertisers.
What does a blended direct response and branding campaign look like? We see Old Spice’s successful “Smell Like A Man, Man” campaign as a prime example. The campaign relied on YouTube’s oversized masthead ad unit to push users to a promotional video, and to garner more followers on Twitter. Old Spice sales reportedly increased 107% during the month the campaign ran, according to Nielsen.
Google’s big list of open source projects just grew by one — the company has introduced a new online learning platform called MOOC.org. Despite the name, it’s not a website about cows — MOOC stands for “massive open online courses,” and it’s a product of the marriage between Mountain View and edX, an educational website by MIT and Harvard. However, while edX only features free courses from affiliated universities, MOOC.org will accept material submitted by other institutions, governments, businesses and even individuals. In short, just about anyone can pitch in — edX’s president even revealed that they want the site to eventually become the “YouTube for MOOCs.” The companies have yet to reveal how they’ll screen submitted courses for quality and how contributors can earn money, but we’ll likely find out when the site launches in mid-2014. Self-motivated folks eager to learn will have to hang out around libraries, campuses and TED talks until then.
Google+ Is The Fourth Most-Used Smartphone App (GlobalWebIndex)
It’s no surprise that Google Maps is the most popular mobile app, used by 54% of the global smartphone population last month, according to a recent survey by GlobalWebIndex. However, the mobile apps for YouTube and Google+ were used by 35% and 30% of smartphone users respectively, which means that Google owns three of the four most widely used apps on smartphones.
Nearly one-fifth of Google’s revenues will come from mobile search
Major players in the US digital ad market are shifting more of their revenues to mobile, as consumers in the US spend more time than ever with portable connected devices.
Search is the largest single format when it comes to mobile ad spending, and search giant Google is already garnering nearly one-fifth of its total US ad revenues from mobile search, eMarketer estimates. This year, 19.1% of Google’s ad revenues will come from mobile search, up from 12.3% last year and rising to nearly 31% by 2015.
While search drives much of Google’s mobile monetization, on the display side YouTube is a major reason more mobile dollars are going to Google. Google has moved display dollars to mobile at a similar pace as for search, though display makes up less of Google’s overall ad revenues. This year, eMarketer projects, 3.8% of Google’s net US ad revenues will come from mobile display, vs. 13.8% coming from desktop display ads. By 2015, the mix will be 9.4% mobile display and 16.6% desktop display, more than doubling mobile display’s share of total ad revenues while still growing display dollars on the desktop.
Facebook is the No. 2 online video property, but doesn’t hold a candle to YouTube’s dominance
When most users think of digital video, they most commonly think of YouTube. And it’s no coincidence, given the dominance of the video platform, that visits to YouTube trump those of any other video platform.
A study by AYTM Market Research examines just how popular YouTube is as a platform—and to what degree users consume YouTube content. The study showed that the vast majority of US internet users (about 60%) visited YouTube at least once a week in March 2013. Out of that percentage, 22% visited YouTube every day, and nearly 30% visited YouTube a few times per week.
Perhaps most striking are the low percentages of internet users who rarely or never visit YouTube. Only 14% of internet users surveyed reported “rarely” visiting the platform, and only 9% never did so.
To put YouTube’s popularity into perspective, AYTM also looked at the frequency of internet users watching videos on sites other than YouTube. Thirty-seven percent said they rarely watched on a site other than YouTube—11% said they never did.
Although 16% watched on sites other than YouTube a few times per month, and 27% watched more than a few times per week, the amount of video consumed is likely dramatically lower than on Google properties. According to comScore data from December 2012, Google sites made up the vast majority of online vid! eo viewership in the US in terms of unique viewers, videos viewed and time spent per viewer. The No. 2 video property, Facebook, was dramatically lower in terms of unique viewers, videos and average time spent per viewer.
Ad Scam Company Profits On YouTube Ads That Should Not Exist (Forbes)
Web security firm Spider.io found that an advertising company, Sambreel, baits YouTube users with a plug-in to download video content. The plug-ins then ultimately become new ad slots on various YouTube pages. The new slots trickle down to small ad exchanges and are ultimately bought up by small companies like dating sites or weight-loss companies, with Sambreel being the sole beneficiary of the zombie ad slots.
Despite the best efforts of Panasonic, Samsung, Sony, LG and others, most of the televisions in people’s homes these days are not of the smart variety. However, there are hundreds of millions of regular televisions packing HDMI ports, and Google’s new Chromecast device offers a way to put some brains into those dumb TVs by giving them access to web-based content. Having a Chromecast dongle connected to your TV means you can stream videos straight from a Google Play, Netflix or YouTube app, or mirror the content in any open tab in Google’s Chrome browser using a tab casting feature.
Sure, we’ve seen devices with almost identical functionality, like Plair, but Chromecast is backed by Google, whose relationships with content providers and developers mean that the Google Cast technology powering it will soon be popping up in even more apps. Not to mention, there’s the price. At $35, it’s almost a third of the cost of Plair and also Roku 3 and Apple TV, the current most popular devices that bring internet video to your TV. Even for such a paltry outlay, is it a worthy addition to your living room? And is it really “the easiest way to enjoy online video and music on your TV” as Google’s marketing would have us believe? Read on to find out.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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