We had an excellent event last week in New York discussing this topic. We hosted an event based on this topic as Nielsen’s latest data on TV usage showed YouTube had crossed a significant milestone: YouTube now represents over 10% of all TV usage in the US. To put that into further context that is over one quarter of all streaming. More than any other media company. This scale has come very quickly - just three years ago it was only 6% of total TV - and many marketers are still on a journey to understand how it can help them achieve their marketing objectives.
Our event hosted industry experts on their view of YouTube and to discuss the pros and cons of advertising on the platform. There was a panel discussion with people who have had firsthand experience of using YouTube to reach an audience. That was preceded by a presentation by Next In Media founder, Mike Shields, and a fireside discussion with Google’s Video MD, Brian Albert. In this article we sum up the biggest takeaways from Mike and Brian’s talks.
YouTube is many things to many people
There are an estimated 3.9 billion videos on YouTube. From low-fi meme videos to long-form, high definition documentaries and everything in between. You can watch YouTube on a 65" TV in your living room or on your phone while waiting for a train. With the availability of all that content, there truly is something for everyone. And we mean everyone. It’s been well documented that kids are watching YouTube but really every age group is spending time on the platform. This diversity is a huge strength and likely to be the reason behind its electric growth.
But it’s not just the audience who are diverse, the marketers using the platform are also varied. There are converted TV buyers, Heads of Social, people running influencer programs, programmatic teams, and even retail media teams all using YouTube to reach an audience. With so many teams, objectives differ too. Some are using it purely for brand awareness, while others are working towards performance goals and of course, there are others using it for both. There are obvious strengths here but also challenges. For example, how do management organize teams and budgets in order to maximize efficiency and effectiveness. As YouTube continues to grow, management must be adaptable, and look for structures and processes that continually take advantage.
With all that content on the platform, it leads to another challenge for advertisers: knowing what content they are targeting and more importantly what content resonates best with their brand. There are several ways to target ads on YouTube and advertisers should find a way that balances their marketing objectives with appearing on content that is contextual relevant for their brand. At Precise TV, we specialize in contextual advertising on YouTube and find it the best way to drive positive brand results for our clients.
We discussed at the event, how video will soon surpass search and display as the largest digital channel. A lot of this growth is being fulled by the shift to CTV advertising.
This also leads to the next talking point…
Does YouTube have a ‘Premium’ problem?
Recently I needed to fix an error issue on my boiler. I am no plumber so naturally turned to YouTube for help. Within a few minutes I knew exactly how to program the boiler and restart it to fix the problem. For many people, including senior marketing execs, this is how they view the platform; a vast DIY video guide, supplemented with low quality UGC.
Brian Albert made a convincing case that this perception is completely wrong. In fact, YouTube has invested about $70m in content over the last 3 years. That’s on par with other, large “more premium” media companies.
There are influencers who have built big followings on the platform like Sean Evans of Hot Ones, Michelle Khare and Marques Brownlee, for example. These creators, and many others like them, are becoming media companies in their own right. They create hugely entertaining videos that can rival TV shows and are simply using YouTube as an effective distribution platform.
However, just because this quality content exists on YouTube, doesn’t mean it's easy for marketers to find it. There are over 3 million monetized channels on YouTube and only a small percentage of that could be considered premium. It is down to brands and agencies to use solutions like YouTube Select and contextual advertising to ensure the content they show up against meets their brand suitability requirements.
Measurement
TV ad measurement has been around for decades; Nielsen was founded over 100 years ago! As a result, advertisers are very comfortable with measuring TV ad effectiveness. YouTube, however, with its myriad devices, audiences and videos is a challenge. Should advertisers measure it like TV? Or should it be treated differently? Are views even worth measuring, or is it better to look at engagement metrics like watchtime, view-through rate and comments? Is it even a combination of many metrics? Brands and agencies need to know that their ad dollars are being put to good use. It is up to YouTube to provide ad measurement solutions that are up to the standards of those who are spending on the platform.
Where next for YouTube?
YouTube shows no signs of slowing down and it should be something every marketer considers when building a media plan. To maximize the platform’s potential, it’s up to the senior management at agencies and brands to continually adapt and find efficient ways of organizing teams and budgets. Additionally, YouTube must find ways to prove its effectiveness with measurement solutions, and solutions that the industry wants.
A big thank you to Mike and Brian for joining us at the event and sharing their views on YouTube. If you enjoyed this article, look out for the summary of the panel discussion, which will follow in a second article.
For a look at what we presented along with a sneak peek at the keynote from Mike Shields, click here