Publication: The New York Times
Title: YouTube Makes the Case That It Helps Build Brands
Article by: Claire Cain Miller
In an effort to drive up advertising profits, YouTube is trying to make a case for brands to utilize online video to reach customers. YouTube has been trying to drive up revenue for the past two years, but the trouble is that, according to the New York Times, “Advertisers spend just $2.2 billion on all online video ads, compared with $60.5 billion on television ads, according to eMarketer…”
YouTube is now trying to attract advertisers by setting itself apart from television through highlighting the “social elements” of YouTube.
“Mr. Watson [of YouTube] said that all ads on YouTube would eventually be video ads for brands. Unlike television, YouTube incorporates social elements by inviting viewers to choose whether they watch, share or create their own videos about advertisers’ products. And YouTube, he said, had both global reach and the ability to target an ad to 20-something men who live near a pizza shop.”
There are several brands that have taken the risk with YouTube already and showed that they really have an advantage through the partnership. Brands have asked for user-submitted content that involves their product in some fashion and have used it in ads or campaigns online. The brands say it makes the experience more authentic because it is user-generated and the consumers are really driving the campaigns through their experiences using the product. In some cases it seems the product is almost secondary to the experience or story of the consumer.
“GoPro, which makes mountable cameras for taking pictures while doing active sports, trolls for videos shot with its camera on YouTube and, with the users’ permission, edits them to show on its YouTube channel and in its online and TV ads. One video, watched six million times in two days, showed a buck leaping across a mountain biker’s trail in Africa and knocking him to the ground.
“The content ends up selling the cameras,” said Stephen Baumer, GoPro’s chief technology officer. “These consumers, to our delight, are advertising on our behalf.””