YouTube’s New Ad Strategy

YouTube has the competition reeling with ambitious initiatives to expand programming and ad formats.

CONTENT

 

Original Content
YouTube shares ad revenue with top content creators. "I'm able to make a living doing just this," says Dane Boedigheimer, whose The Annoying Orange has been the No. 1 web show since February 2010.

Examples

The Annoying Orange, Next New Networks, Machinima, Nigahiga, The Young Turks

Concerts
"This has been a game changer for us," says Chris Maxcy, YouTube's head of music partnerships. Live-streaming concerts have drawn between 5 million and 10 million live views. YouTube teamed up with Vevo and American Express in 2010 for its Unstaged series.

Examples
Bon Jovi, U2, the National, Alicia Keys, Arcade fire, John Legend & The Roots

Sports
The IPL, a short-form cricket league in India, pulled in 55 million views during its first season on YouTube. "It helped us engage brands that were not talking to us in the past," says Gautam Anand, Google's director of content partnerships in Asia.

Examples
IPL; Major League Baseball

How To
YouTube has given rise to a generation of teaching stars. Makeup artist Michelle Phan's tutorial on Lady Gaga's "Poker Face" look has racked up 24 million views and paved the way for Phan's deals with Colgate, Lancôme, and others.

Examples
Michelle Phan (makeup), Sal Khan (math), ViewDo (Guitar)

Movies/TV
YouTube tries to offer longer-form content not available elsewhere. WWE posts full episodes of Friday Night Smackdown to YouTube 24 hours after airing them on TV. "We're making six figures a month" in ad revenue, says Brian Kalinowski, WWE's EVP of digital media.
Examples
WWE, Striker, Sundance Film Festival, BBC Channels 4 and 5

Advertising As Content
To promote its Trivial Pursuit: Bet You Know It edition, Hasbro ads pit users against YouTube stars, generating more than 250 million impressions.

Examples
Kraft (Paula Deen), Hasbro, The Last Exorcism

REVENUE

 

Home Page
The U.S. home page's 18 million daily visitors give brands "big impact to a concentrated audience," says Joel Lunenfeld, CEO of Moxie Interactive, which has created home-page ads for Verizon and Avatar.

Examples
Verizon, Hasbro, Kraft, Dreamworks, FOx

Promoted Videos
Like sponsored ads on Google, promoted videos pop up around search results. Advertisers pay only when users click play.

Examples
Evian, Panasonic, Stouffer's, Wrigley, Maybelline

Content ID
To prevent hosting illegally posted videos, YouTube learned how to identify them. Copyright owners -- including early adopter CBS -- decide whether to take down the video or sell ads against it. One-third of YouTube's 2 billion monetized views each week come from Content ID.

Examples
CBS, Lionsgate (Mad Men ), Sony

Click-To-Buy
Call-to-action spots with videos can transform viewers into consumers: Monty Python videos directed viewers to the troupe's DVDs on Amazon, increasing sales 23,000%.

Examples
Cee Lo Green (iTunes), Monty Python (Amazon), Charity: Water

Branded Channels
YouTube gives brands a lot of latitude, including breaking the fourth wall. For The Expendables, Sylvester Stallone shoots the site to smithereens and talks to viewers. Channels "allow us a flexibility like no other in engaging a user," says Dimitry Ioffe, CEO of the Visionaire Group.

Examples
Lionsgate (The Expendables), Samsung, Tipp-Ex

Display
Google predicts these digital billboards will add more video and become more social in the next few years, turning into a $50 billion industry.

Examples
Blizzard Entertainment, HTC, Absolut, Volvo

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