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  1. #1
    WHT-BR Top Member
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    Dec 2010
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    [EN] Google is ramping up its assault on television's advertising business

    YouTube to Offer Advertisers Some Guarantees

    In a renewed effort to lure a bigger share of the advertising dollars that now flow to major TV networks, Google's YouTube is making a number of concessions long sought by marketers, ad executives say.

    Most prominently, in discussions ahead of this spring's TV ad-selling season, YouTube has told marketers it will offer audience guarantees to advertisers that make advance commitments, according to people familiar with the matter. YouTube will guarantee to air ads across its channels until they reach a certain percentage of the target audience that the marketer is trying to reach, according to several of the people.

    TV networks have long offered audience guarantees to advertisers, reimbursing marketers with extra ad time if program viewership fell short of the guarantees. YouTube hasn't previously done so, despite marketer requests, although last year it tested the concept on a small scale, said a person familiar with the situation.

    Offering guarantees "will make it easier for chief marketing officers to feel more comfortable about moving ad budgets that weren't earmarked for YouTube or online video to Google," said Jordan Bitterman, chief strategy officer of Mindshare, a media buying firm owned by WPP WPP.LN +0.16% PLC.

    YouTube also plans to reserve space for advertisers that agree to buy in advance in the best performing 5% of its content across channels such as Beauty & Fashion, Comedy, Food, Music, and Sports.

    Both moves are part of an effort by YouTube to get marketers to commit a portion of their ad budgets well in advance of when programs will air.

    While advertisers have long made such advance commitments to television networks, during television's "upfront" market every spring, many marketers have balked at making similar commitments with YouTube and others.

    Offering guarantees "will make it easier for chief marketing officers to feel more comfortable about moving ad budgets that weren't earmarked for YouTube or online video to Google," said Jordan Bitterman, chief strategy officer of Mindshare, a media buying firm owned by WPP WPP.LN +0.16% PLC.

    YouTube also plans to reserve space for advertisers that agree to buy in advance in the best performing 5% of its content across channels such as Beauty & Fashion, Comedy, Food, Music, and Sports.

    Both moves are part of an effort by YouTube to get marketers to commit a portion of their ad budgets well in advance of when programs will air.

    While advertisers have long made such advance commitments to television networks, during television's "upfront" market every spring, many marketers have balked at making similar commitments with YouTube and others.
    http://online.wsj.com/news/articles/...71413209348736

  2. #2
    WHT-BR Top Member
    Data de Ingresso
    Dec 2010
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    15,002

    Does YouTube Want a Bigger Cut of Branded Entertainment Ad Revenue?

    April 30, 2014


    By Mike Shields

    As YouTube heads into its NewFront on Wednesday night (or the Brandcast, as the company calls it), a question hangs over the company and its ecosystem. Does it want to extend its ad business into branded entertainment in a bigger way?

    Right now, YouTube takes 45% of ad revenue generated on its platform via pre-roll ads (like those 30-second spots often seen prior to videos). But it has deliberately left branded entertainment deals — either paid brand mentions in videos or product placements or videos shot explicitly for brands — to YouTube program creators like Maker Studios, which Walt Disney Co. is in the process of acquiring. The only exception is that YouTube caters to the biggest brands on the site with its in-house creative team, The Zoo, doing some branded deals for big events like the Oscars.

    Is that a big problem? Well, according to eMarketer,YouTube netted $1.96 billion in global ad revenue last year, up 66% from 2012. But this figure doesn’t include money that goes directly to YouTube program creators. And as more and more advertisers look to such deals, hoping to harness the social media power of the video platform, those dollars may start becoming significant, and something Google might want a piece of.

    During a presentation held by Seventeen magazine and the YouTube network AwesomenessTV on Tuesday, for instance, several top YouTube creators talked both about how much demand there is among brands for Web video integrations, and how custom they can be.

    Meghan Rienks, of the YouTube channel Meghanrosette, she hears pitches from brands all the time, though the number of advertisers she agrees to work with is “miniscule. It has to be organic and something I believe in,” Mr. Rienks said.

    Other examples: the YouTube network Stylehaul focuses most of its business on branded entertainment deals, almost treating YouTube’s video ad inventory as secondary. Similarly Maker Studios has built an in-house branded entertainment team, and presumably, Disney is looking to nab Maker Studios for its perceived expertise in this realm: for example, the Maker-repped a Capella star Mike Tompkins produced this baseball themed clip for Pepsi last year.

    “This issue is on everybody’s radar right now,” said one person close to the YouTube space. “The YouTube sales team has basically been selling programmatic pre-roll, which cuts across channels. And MCNs [multi channel networks like Maker] want to sell their own inventory.”

    To help alleviate any potential channel conflict, YouTube has recently pitched many of the top MCNs about co-selling together. In a presentation which CMO Today has seen, YouTube emphasized that marketers want advertising on YouTube to be more efficient. One way of making it more efficient is for YouTube to work with MCNs, rather than independently of each other, YouTube’s presentation suggested.

    “Google sales focus is audience and scale,” reads the presentation. “Partner sales focus is content and customization.”

    Is this another way of YouTube saying it wants a piece of the branded entertainment deals that MCNs are getting? Certainly some are wondering whether Google might eventually want to build it’s own branded entertainment practice, exerting better control of the YouTube ad market. “I definitely think that’s a logical next step for them,” said one publishing executive who’s worked with multiple YouTube creators.

    YouTube executives declined to comment, but a representative emphasized that YouTube has always been supportive of networks built on its platform.

    MCNs, for their part, don’t see Google getting more involved in branded entertainment.

    “I don’t think they could ever do what we do,” said Stephanie Horbaczewski, president, CEO and co-founder of StyleHaul. CEO George Strompolos, CEO of FullScreen, concurred.

    For one thing, branded entertainment deals are high touch, often labor intensive deals. They are very un-Google, noted many observers, since getting YouTube creators to produce singalongs for Pepsi can’t be scaled using automated software.

    YouTube creators emphasize that branded entertainment isn’t the kind of ad deal that can be done in an automated way.

    “Brands have to understand it’s an integration,” added Arden Rose, a creator who’s worked on YouTube since 2008. “The best case is when they give us creative control,” Ms. Rose said. “It’s not a commercial. We say to brands, ‘Let us help you figure out how YouTube works.’”

    Ms. Rose added: “YouTube’s a weird format.”
    http://blogs.wsj.com/cmo/2014/04/30/...nt-ad-revenue/

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