YouTube Pursuing More Branded Advertising

17Oct11

This New York Times article discusses how YouTube is trying to increase their advertising revenue by marketing themselves towards brands that typically would spend the majority of their advertising budgets on television. According to eMarketer, “Advertisers spend just $2.2 billion on all online video ads, compared with $60.5 billion on television ads…and ad agencies are only now hiring people with expertise in online video,” (NY Times, 2011). YouTube’s advantage over traditional media advertising is the social elements and interactivity the service allows between the brand and the viewer, best exemplified by Proctor & Gamble’s viral ads for Old Spice last year. However, a critical deterrent to brands spending more on YouTube advertising is the fact that their ads may be shown next to low budget videos that could contain content not favorable towards that brand’s image.

YouTube represents the potential for the expansion of brand advertising in the area of social and online media and gives companies the ability to interact directly with consumers (with the potential of reaching 800 million unique visitors a month). There have been numerous attempts to bring this level of personalization and interactivity to advertising for some time. For example, in cable television, companies such as Comcast have implemented interactive commercials that give the viewer an option to view more content related to a commercial they are watching – while it’s certainly not at the level of YouTube, interactive ads do promote more interactivity between the user and an advertisement. However, with television viewers continually fragmenting across other forms of media (and in particular the Internet), advertisers should continue to adapt to these new forms of technology in order to not only promote their brands in an effective manner to a variety of audiences but also to make sure they aren’t the ones left behind.

-Chris G

Miller, C. C. (2011, October 14). YouTube Makes the Case That It Helps Build Brands. The New York Times. Retrieved October 17, 2011, from http://www.nytimes.com/2011/10/14/business/media/youtube-makes-the-case-that-it-helps-build-brands.html?_r=1&ref=technology

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