YouTube is An Advertising Magnet

Derek Mehraban's picture
Instructor
6/15/2011
Google, Youtube

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YouTube claims to now have more than 20,000 advertisers. These advertisers run the gamut from the large Super Bowl advertisers to the small firms. This growth is partly because YouTube is trying to reach out to digital agencies to attract the smaller firms. One example of this outreach is TrueView, where the advertiser only pays if a viewer chooses to watch a video. The digital agency can expect other outreaches as well.


Another reason why advertisers need to consider YouTube is because it is so effective. People want to watch videos, and on YouTube they are willing to forgo studio level production values as well as big names involved, which all contribute significantly to production costs. In short, viewers are willing to give cheaply made video ads a chance. Even if they do not like the ad, then they have still viewed it. YouTube also offers a recommendation system based on friends and previous affections, which also helps drive traffic to the video ads.
What are your thoughts on advertising on YouTube? Would you watch ads there? What is the future of online video advertising on YouTube?


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Comments & Feedback

Student

My opinion on this is relative to the execution of the program.  If it is done where as a viewer I am more or less forced to watch the advertisement to then get to view the video that I wanted to watch, then I am completely against it.  Then it becomes no different than network TV, which has obviously been losing visitors for some time now.

However, if it is a system that is more like PPC on other search engines, then I think it is a good idea.  If I could make bids for my video to show up when specific keywords are searched on, and if I only pay when people view my video because they wanted to view my video, then I am for it.

I see definite advantages to utilizing YouTube videos instead of regular television commercials or "corporate videos".  With YouTube there is a lot more flexibility regarding the length of the video, the way that the information is presented and the way that the video is made.  I agree that it does not have to be a top-end production, however I do believe that the level of quality and the tone of the video needs to match with your company's culture and brand.  If your organization is conservative and viewed as a market leader, a video that is based on humor and looks like it was done as a home movie is probably not a great idea unless you are trying to move your brand in a different direction.

Student

Whenever I am watching a music video on YouTube or a re-run of an old TV show, ads will always tend to either pop up in the beginning before the video I want to view is played, or even during it. Advertising on YouTube is honestly so annoying. Normally when ads pop up I just turn my head and rarely ever watch them. I strongly feel that there are so many strategic ways to advertise something and that the popular video channel YouTube is not needed. It is fun to type into the search box an old commercial you saw once before when you were younger, but if companies are hoping to drive in a significant amount of traffic with their ad on YouTube; they are wrong. I do enjoy watching ads on this site that have been previously uploaded, but I do not enjoy listening nor watching ads during a particular video. Although, I do not like the whole "advertising on YouTube" or deal, I do think that many people will consider using video advertising a lot more as the digital world advances.

Student

From my perspective, due to the popularity of Youtube, advertising on Youtube woule be beneficial. The advertiser only pays if a viewer chooses to watch a video which is great.  Regarding a large sum of money to pay for the TV commercial and the popularity of the online activity, putting advertising on Youtube may attract more target audiences meanwhile save a lot of money.

Student

I like the idea of YouTube advertising. I feel that advertisers who use this outlet are smart and adapating to what is cool in today's society. People who host their own channels are a great way to get a blog-like personal experience from regular consumers. My old roommate has a makeup channel on YouTube and companies now send her boxes and boxes of free makeup just for her to review on her site. This way, they will get real reviews from a person that has lots of followers and people who trust and look up to her. Advertisers also do a good job of putting relevant ads on videos. For example, I was watching a fashion video and they gave me a link to a fashion website where I could buy the shorts like the girl in the video was wearing. This is a direct call to action and makes shopping at their site convenient. As for ads on youtube, I watch some. Memorable ones can be posted to friends walls or just watched for pleasure over and over again. I had never seen the Google Chrome tv ad, and then a friend told me I look like the little girl on it so I immediately "Youtubed" it and now I have emailed it to my family in hopes of making them feel emotional. I think the future of online video advertising on YouTube will be advertisers contacting popular viral video stars and paying them for product placement. The product would not necessarily need to be the center of the shot, but having it there would create some notice from viewers. 

Student

When watching videos online most of the advertisements are repeats and though this annoys me, I end up watching the commercial so many times, I end up liking it. So I see it as a great way to get to the consumers. Now, when you watch anything online you have advertisements that play during the episode. the only good thing is there is less advertisements that you have to go through. Its usually just one or two commercials. This can help the effectiveness of the ads because viewers are more engaged for a shorter amount of time but continuously watching that commercial. Of course, I do think they need to be studio level productions, unless its a viral video. If it is a viral video, most of the time that becomes popular in itself and people go to youtube to watch it. Viral videos are the new way of advertising, that we actually discuss them and come up with ideas for viral videos in my creative advertising classes. 

Student

Well, I guess I'm going to be the stick in the mud on this one. I don't like having to sit through an ad before I can watch the video or show I want. Maybe it's because my age demographic is less likely to watch YouTube regularly than my younger classmates, or because Libras don't like chaos and feeling overwhelmed (too much sensory overload!), or maybe it's just me. Or all of the above. The only time I go to YouTube is to watch a favorite Loony Toons cartoon, a funny commercial, or some awful music video that everyone keeps talking about. For me, video ads are often just another disruption to my day.

That said, there probably is value in advertising on YouTube since people voluntarily go to that site to seek out whatever content they're interested in. As long as the ads are relevant and creative, these viewers would probably be more receptive to watching them and perhaps buying the product. As much as I resist it, I do believe that advertising on YouTube is here to stay. I guess we will all get used to it like we did back in the 80s when Pepsi was the first company to have their ad in a movie's VHS release.

Student

I am not one to spend hours on YouTube watching random videos and really do not use it very much. I will only watch a video there if someone else is showing me something or tells me to look up a particular video. I would consider myself a "digital audience" because I am on my computer all day long, but not YouTube and I would not be able to be reached through YouTube advertisements. I do know that a large majority of my generation do spend countless hours on YouTube so maybe it would be beneficial. I believe ads would need to be placed before a video someone would be wanting to watch in order to reach them.

Student

From an advertising viewpoint Youtube advertisements are a great way to reach viewers. Personally I think it will continue to be effective IF advertisers do not over do it. We are constantly being sold something every time we drive down the street, turn on the TV or radio, or log into our email and I don't know anyone that particularly enjoys this. People put up with the intense amount of advertising in our society and YouTube used to be a place to get away from it. You simply searched for a video you would like to view and then viewed it. Now you must watch an ad before viewing the video you have picked out. The short ads aren't deterring anyone from using YouTube at this point but if advertising becomes more important than providing actual content viewers might find another site to fulfill their needs. Another way advertisers can use YouTube to their advantage is simply by posting television ads on a company's own YouTube account. When an advertisement is funny or extremely creative a person might pulled it up on YouTube to share with friends or family. Good advertising will be pulled up on YouTube without interuppting viewers' other YouTube activity.

Student

There are many benefits from advertising on YouTube. If I were in a position to decide if my company would advertise on YouTube I would be all for it. There are thousands if not millions of people a day that watch videos everyday on YouTube and with our advertisements we could tap into a market by accident. That is my opionion from a advertising point-of-point but from a consumers point-of-view I don't want to see companies take over YouTube with advertisments because that is not why I'm on YouTube. When I click on a video to watch it I don't want to watch your ad first, it is a big turn off the the brand that put that advertisement up there. So there is a fine line to walk if you are going to to advertise on YouTube but I believe that it would be a good decision to advertise on YouTube.

Student

I honestly think that youtube is going to evolve into the new facebook, except this time it will be accessible to advertisers. I keep noticing a growing list of similarities between the two social media channels, such as video sharing, video comments, the like button, walls, profiles/channels, etc. However, instead of barring advertisers youtube doesn't have any significant barricades against ads. No, I don't love the idea of advertising on youtube because I like to watch my video content as soon as I click on the link; as opposed to sitting through a minute of commercials. But, I will watch them to get to the video I want to see. I think that a lot of people have the same attitude as I do toward ads on youtube. In the future, it wouldn't surprise me if the amount of ads before videos were much longer. I can also see celebrity channels having ads run before their video posts can be watched.

Student

As everyone else has mentioned, I too think advertsising on YouTube is a GREAT idea. I did not know that YouTube host that many advertisers, but it does indeed make sense. YouTube is so popular throughout all age groups. My grandmother from time to time go on YouTube and search for certain things that she has an interest in. My grandmother. Crazy isn't it? But I think thats what makes YouTube so wonderful and effective. There are no restrictions and advertisers can get as simple or bizarre as they please, catering to everybody's needs. Whatever you are searching for, YouTube is bound to have it. With time, YouTube is only going to get bigger and better. One day, I may have an ad or two on there.

Student

I think advertising on YouTube is the direction that companies need to go. I think the way YouTube presents advertisements to viewers is very effective. Right when I went on the site today, they had a nice teaser banner for the Nissan LEAF that really caught my attention. Even if I wasn't browsing the site for this blog post, I still would have clicked on the ad. People go to YouTube to watch videos, so as long as the content of an advertisement is relevant or entertaining, I don't think people mind watching them.I typically only go to YouTube if I'm looking for something, but like many others, I can get sucked into other videos and potentially advertisements.

I think future of online advertising will include even more personalized ads as there will be an even larger variety of advertisers and better tracking technology of people's interests. As we've learned, there are 48 hours of content uploaded to YouTube every minute, and I think that statistic will continue to grow. This is an exciting time for YouTube and advertisers!

By the way, I now have the Swagger Wagon stuck in my head!

Student

YouTube is one of my favorite sites and I tend to visit it almost daily. Pretty much anything you can think of is on youtube. Say you missed an episode of a show you wanted to see, you wanted to look up your favorite movie scene, or you wanted to see a trailer to a new music video or movie, YouTube is the first place i check. I think advertising on YouTube can be very successful. Before a lot of YouTube clips, there are 30 second ads that you have to watch before watching your video. People definitely will watch the ads before because they went on there for a reason, so they will watch the ad for 30 seconds before there clip comes on. This give advertisers a great opportunity for the future because they can target the people who are viewing certain clips. Advertisers will know the general type of people who will being viewing certain clips so they would be able to put there product or service right in front of that audience to target and draw them in. This should be an advertisers dream since they can get a clear idea of who will be viewing their clip and most people are patient enough to watch the advertisement before the clip.

Student

I think advertising on YouTube is a great idea. Because of its popularity and appeal to a variety of viewers, it has become the go-to location to post videos about things you want people to watch.

What I love about YouTube is that it has forced people and organizations and businesses to get really creative with their video content. A creative, engaging, and entertaining video attracts viewers and builds a viral following. That creativity propels the advertising and marketing fields to go further and create innovative messages and images that people gravitate to. As a result, I think the future of online video advertising will only grow as the audiences that you hope to reach via YouTube continue to get bigger and more diverse.

Student

i do think so! different video would   target  to different groups of people. this would benefit for the advertiser to focus on which groups of video should put such advs in there. in this case, their most likely target customers would see and be effected.

Student

YouTube is one of the most creative sites out there. Although it started out as a way to share their personal videos, it has propelled into a great way to advertise. Not only can advertisers (and individuals) post ads, which then suggest other ads, but lately, YouTube forces you to watch a 30 second ad before viewing some videos. It is a genius website because not only can people look up their favorite ads and show their friends, but unlike DVR TV where people are taking measures to skip the commercials, here they are actually voluntarily watching commercials without a TV program involved. There is no incentive to watch them aside from their personal entertainment. I think as time passes, the site will get more and more successful.

Student

I totally agree with your comment that "there is no incentive to watch them aside from their personal entertainment". When viewers go to watch their video, most individuals don't even skip the video after the :05 if they are given the option, its just one commercial so most people just sit through it which is good for the company/person sponsoring the advertisement. As far as being a creative site, this is so very true, YouTube also gives viewers the option of having their own "channel" where they can save and share their favorite videos as well upload their own videos as if its their own private network channel, and you can promote yourself and get others to subscribe to your channel which is awesome for individuals who are trying to promote themselves for job opportunities. So rather you are a company looking to gain more loyal customers or just an individual trying to capture the attention of others, YouTube is the place for you. You can really and truly make your YouTube experience what you want it to be. Their keyword optimization is great as well, once you watch a video they give you suggestions for other videos that are related to the video(s) that you just watched. It truly is a creative and innovative site.  

Derek Mehraban's picture
Instructor
6/15/2011
Google, Youtube