Online social media is place where most of the western world now hangs out. YouTube is the world’s second most trafficked website. It follows that this represents a huge opportunity for marketing, much like television did back the middle of the 20th Century. There are however a few things to know when venturing into this space.
Here are 5 essential facts to understand about advertising on YouTube…
Youtube Fact 1:
YouTube is not limited to short-form user-generated content. Thousands of premium content partners, from Sony to Disney to Universal Music, and fans can find hundreds of full-length feature films and thousands of full-length TV episodes on YouTube. The world premiere of Joy Luck Club director Wayne Wang’s film, “The Princess of Nebraska,” was viewed 165,000+ times during the first 48 hours — the equivalent of landing the 15th spot on the Hollywood box office charts.
Youtube Fact 2:
YouTube videos are NOT grainy & of poor quality. Full HD videos are on YouTube, already more HD videos than any other video site. Hundreds of thousands of HD videos are uploaded to the site every month, and tens of millions are viewed every day. Earlier this year, CNET’s WebWare called YouTube the best HD video service on the web.
Youtube Fact 3:
Traffic, growth, and uploads are good for YouTube’s bottom line. There’s been a lot of speculation lately about how much it costs to run YouTube. With revenue estimates ranging from $120 million to $500 million, and costs on an equally large spectrum, it seems people can pick any number to fit any theory they have about this business. The truth is that all the infrastructure is built from scratch, which means models that use standard industry pricing are too high when it comes to bandwidth and similar costs. YT is at a point where online advertising growth is definitely good for the bottom line, not bad.
Youtube Fact 4:
Advertisers are not afraid of YouTube. Over 70% of Ad Age Top 100 marketers ran campaigns on YouTube in 2008. They’re bought the home page, Promoted Videos, overlays, and in-stream ads. Many are organizing contests that encourage the uploading of user videos to their brand channels, or running advertising exclusively on popular user partner content (see Carl’s Jr.). Advertisers just want control, so YT is continuing to develop tools and targeting products that give advertisers more control over where their ads appear on the site. More will follow on that front soon.
Youtube Fact 5:
YouTube is only monetizing 3-5% of the site. This oft-cited statistic is old and wrong, and continues to raise much speculation. In my view, the percentage is far less important than the total number of monetized views, and YT is now helping partners generate revenue from hundreds of millions of video views every week in the US (and billions worldwide), more than any other video site has total views. Monetized views have more than tripled in the past year, as they’re adding partner content very quickly.
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