This week, The Wall Street Journal reported that YouTube will be making a play for the ad dollars usually reserved for major TV networks. YouTube, owned by Google Inc. since 2006, has proven an effective place for marketers. In a recent survey of U.S. consumers, more than 73% said they were more likely to make a purchase after watching a video. Not only that, a staggering 96% of viewers said online videos helped them make a purchasing decision. Video marketing hasn’t just proven effective for helping web-surfers shop, it’s also an invaluable tool for building brand awareness. From the same survey conducted by Animoto, 71% of respondents said watching video content left them with a positive impression of a particular brand. What accounts for the uptick in the impact of online video marketing? The answer’s simple. Sites like YouTube, Hulu, and other online video services are where more people are going for content these days. A whopping 94% of consumers view online video content on their home computer at least once a week. Added to that are the growing numbers of mobile users who view and share online videos from their smartphones and tablets. YouTube knows this and plans to seize the opportunity.
In their biggest marketing move since the company began running pre-roll spots in 2009, YouTube is dedicating ad time across the service until an advertiser’s target audience is reached. In addition, YouTube will reserve ad space for its top-performing shows to advertisers who pay in advance. These are tried and true methods for advertising on television but are a first for the online video-sharing juggernaut. It’s a bold move for YouTube and a boon for marketers who may have another outlet at their disposal as Yahoo readies its own video service.
According to re/code, Yahoo continues its rebuilding process under the direction of CEO Marissa Mayer with the development of a competitor to YouTube. How’s this good for marketers? Yahoo plans to offer competitive economics, increasing the amount of ad revenues or even guaranteeing ad rates on videos. Not only that, the latest reports indicate Yahoo will allow content creators the ability to sell their own ad space, independently.
The world of online video continues to grow and, with it, the marketing possibilities. Audiences are engaging with content like never before and companies like YouTube and Yahoo, as well as content creators, are taking the opportunity to win over consumers.