As YouTube Advertisers Feel The Descreased Return, Video Quality Data Is Helpfull
Among the new streaming services, the huge increase in the use of CTV ads, and the growing investment from major technology players, the digital video system is moving faster and showing no signs of declining. Amid the chaos, however, YouTube stands above the distraction as a seemingly immovable giant. The company's revenue increased by 84% annually in the second quarter of 2021, largely driven by the return on online advertising.
YouTube's advertising success can be put into its default auction, which proves to be very effective in selling ad space. According to a recent article from The Information, this functionality is due to YouTube publishers pricing spots that sell spots directly on the platform.
"A digital news officer told The Information that his company now sells only 10% to 15 percent of its YouTube ad space directly, down from 40% in the last three years. This is because YouTube charges about a quarter of a quarter. which can be replaced by publishers with the colors they sell on their YouTube programs, says the manager. "
By reducing those publishers who sell directly to their content, YouTube sees huge profits beyond its growth. What should publishers do now? If the trend continues, these publishers will continue to see a decrease in returns; Thinking content providers must identify new opportunities before their business can be irreparably damaged.
Understanding YouTube's Importance
The fact that things have been damaged in this way for publishers shows a fundamental misunderstanding of the value of YouTube for publishers and sellers. Consider the YouTube business model and why it makes certain decisions: the company is there to increase viewing time, and to enable viewers to view content that maximizes YouTube's profits. It is not a distribution channel for publishers who want to raise direct revenue; instead, it is better used as a marketing channel.
Recent research shows that YouTube does not provide excellent results for advertisers. In a joint study conducted by Fox and Peasure Measurement Technologies, researchers analyzed the $ 48 billion return on consumer spending, tied to $ 2.2 trillion in consumer spending across the automotive industry, fast food restaurants (QSR) and consumer goods consolidation (CPG). 5.5-year study results showed that the most important format was premium CTV with a wide margin, followed by direct TV and then digital. According to research, premium CTV saw 9.4 times the Return on Ad Spend (ROAS) compared to direct TV and digital video in CPG usage; 9.1 ROAS times in QSR implementation; and 4.7 times ROAS on vehicles.
We can think of some of the reasons why digital video performance is less efficient compared to direct TV and CTV - easy to skip and lack of attention - but more importantly marketers were already seeing a decline in their digital video investment before YouTube began to reduce them. Vendors are also concerned about product safety and rating on YouTube, as the opaque platform has severely limited the use of third-party rating tools and content display solutions such as those provided by DoubleVerify and Integral Ad Science.
Developing a New Need
For publishers looking for new marketing opportunities outside of YouTube, there are a few key tips that will help attract new demands. Taken together, these methods can effectively increase the value of the publisher's assets on both CTV and distributed and operational distribution channels.
Enhance your party details and video-level content data
Publishers can start with their details, but marketers will eventually want to use the information they rely on for guidance and verification. Happily, state intelligence providers are developing, bringing some of the best AI-supported video to video for the first time. GumGum and Silverbullet 4D are some of the first companies to successfully use AI to classify content, while Cerv Interactive works to identify products and get the feel and feel of the content itself. These tools will be very useful for publishers as they want to show the use of vendors on new platforms.
Ask your SSP to grant access to status spy solutions
With new innovative intelligence tools that make direction and measurement more efficient, publishers need to ensure access to them. When publishers are exposed to the performance of their industry at the video level - now easily accessible through contextual identification - they can use that knowledge to package specific deals and participate in private markets. Information is money in this area of the busy video market and being able to show value is key to success.
It is clear that audiences and advertisers are flocking to CTV. In particular, FAST (Free, TV-Streaming TV) platforms such as Roku Channel and Tubi are seeing rapid growth from consumers experiencing fatigue. Publishers should make every effort to be in these forums as well; however, without content classification, consumers will only see app-level data and are less likely to use it. Content separation and content ingenuity are needed to get a piece of this growing pie.
Finally, publishers should not plan to discontinue YouTube altogether. Given the large amount of time spent on the platform with premium audiences, it is important to maintain a certain level of visibility. However, marketers must live up to expectations: YouTube will never be their main revenue driver; instead, it is a search tool. Content availability is great and is a great place to promote any entertainment product. Not when you want to make a significant amount of money as a publisher. The best use of YouTube is to raise awareness of your excellent content, using teasers and show clips to drive traffic on the offering of many premiums on other platforms such as FAST streaming services. This model is changing rapidly and new companies such as Amagi and OTTera are leading the way in helping publishers to use and expand their distribution.
While publishers may have been disappointed with the decline in their YouTube revenues, it is important to remember that nothing stands in the turbulent video markets. Those publishers who are unable to keep up with the latest trends and take advantage of new opportunities will find themselves wondering why they once worried about investing in YouTube.
Increase your presence on FAST platforms
Manage your expectations on YouTube
Finally, publishers should not plan to discontinue YouTube altogether. Given the large amount of time spent on the platform with premium audiences, it is important to maintain a certain level of visibility. However, marketers must live up to expectations: YouTube will never be their main revenue driver; instead, it is a search tool. Content availability is great and is a great place to promote any entertainment product. Not when you want to make a significant amount of money as a publisher. The best use of YouTube is to raise awareness of your excellent content, using teasers and show clips to drive traffic on the offering of many premiums on other platforms such as FAST streaming services. This model is changing rapidly and new companies such as Amagi and OTTera are leading the way in helping publishers to use and expand their distribution.
While publishers may have been disappointed with the decline in their YouTube revenues, it is important to remember that nothing stands in the turbulent video markets. Those publishers who are unable to keep up with the latest trends and take advantage of new opportunities will find themselves wondering why they once worried about investing in YouTube.
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