Marketers to Pump Up YouTube Promotions

Look out, amateurs musicians and stuntmen. The professionals are ready to take over the world of YouTube. As Google, the owner of YouTube, seeks to turn the popular site into an advertising powerhouse, it will be rolling out new content and courting marketers in a big way.

Earlier this month, Google announced it will be spending over $100 million to develop new content for YouTube and $200 million to promote its channels. Google VP-​content Robert Kyncl hopes that consumers will learn to “think of YouTube as an entertainment destination.” Research suggests that consumers spend more time engaged with professionally produced content, and, for now, will watch video ads to completion, especially when they appear as a mid-​roll. In other cases, when given a chance to skip the ad after viewing for a few seconds, viewers opt to “watch an ad to completion up to 45% of the time.” With that information in mind, Google’s strategy has been to mimic some of the popular TV reality formats and combine that with the most visible YouTube postings to come up with offerings such as DanceOn (Madonna has an association with the program).

Analysts note that marketers are looking for high-​quality content and reach when they consider whether to shift funds from TV to online video. So far, annual spending on online video is about $1.8 billion compared to $70 billion spend on TV.  With monthly views of between 15–20 billion and consumers being more engaged in the content that they can select anywhere, anytime, the YouTube value proposition for advertisers is looking up.

[Sources: Learmonth, Michale. YouTube Commits $200M. adage​.com. 3 May 2012. Web. 17 May 2012; YouTube Wants (Increasingly Deserves) Your Marketing Bucks. Marketingvox​.com. 7 May 2012. Web 17 May 2012; Learmonth, Michael. YouTube’s Video Views are Falling. Adage​.com. 14 May 2012. Web. 17 May 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.