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YouTube Launches a New Tube

Last year, YouTube showed interest on investing behind professional and commercial content.

On 14 May 2012, in New York, they presented ‘Digital Content New Front’ jointly with other online video platforms — AOL, Hulu, Yahoo!, Microsoft and the latest player.

This is their most serious effort yet to tempt advertising dollars away from broadcast TV to online video.

In YouTube’s “Brandcast” presentation, Lucas Watson, Google’s VP for global video sales said “At YouTube, we’re not just reimagining video — we’re reimagining brand-building on the Web.”

So far, this statement and what they have presented were enough to entice big advertisers such as Unilever, AT&T, Toyota, and GM to jump on board and to build their brands on YouTube.

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How are they rolling this out? Google boasts of a USD 100 million investment.

They have officially launched a women’s drama channel, Wigs, featuring original and professional content by top producers in Hollywood featuring stars such as Jennifer Garner and America Ferrera. nt behind the new content, partnering with over 100 top Hollywood executives and other content providers. They have committed to showcase 25 hours of new content daily by the end of July.

As a lead-up to the upcoming Olympics, they have launched a Team USA channel (sponsored by AT&T) from the United States Olympics Committee that will include original content featuring the 2012 Olympians, hopefuls, and legends as well as historical footage.

Towards the end of the year, they’re partnering with the Tribeca Film Festival to showcase some short films on the new channel, The Picture Show.

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What does this mean for Advertisers?

According to the Nielsen Digital Consumer Report 2011, 80% of Malaysian netizens stream or download videos from the internet each Month, and 51% of them have an active online YouTube page, indicating the opportunity for advertisers to effectively capture of this space.

As we see improvements in speed and quality of both broadband and mobile internet connections will definitely increase the consumption of online and mobile video. There now exists a generation that expects video entertainment wherever and whenever they want it.

YouTube’s push into quality content is geared to set them up as a leader in this space, capitalizing on their need for convenience and instant gratification.

YouTube will be well positioned to increase their share of audience with a model that allows users to enjoy video consumption on demand on a single platform.

While YouTube will not be rejecting its ‘User Generated’ roots, this move into quality content that is original and professionally produced will give terrestrial and cable networks a run for their money.

Advertisers will benefit from even more ad opportunities on the YouTube platform ranging from pre-rolls to branded channels, branded content or even interactive videos. YouTube can promise advertisers greater flexibility with relatively reduced investments and more formats and targeting options than traditional TV.

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With Smart (connected) TVs gradually becoming the standard for TVs in more developed markets, viewers will be able to switch between broadcast TV and online with ease. In addition, with smartphones and tablets enjoying significant growth globally, mobile video consumption will be picked up even faster by consumers, further fragmenting the TV landscape.

On an end note, this presents us with a new challenge: how to measure impact cross multiple screens. OMD China has already introduced a multi-screen planning approach that can calculate reach across TV, Online and DOOH screens to plan and budget more effectively.

Platforms such as YouTube will continue to make themselves preferred and profitable as they adapt to what consumers want, when and where!