Most brands are betting heavily on advertising on YouTube

YouTube Marketing

Until recently, said online video YouTube was saying. Advertisers, therefore, were dumped on the platform to take advantage of one of the formats that gets a higher rate of engagement with the consumer. Today, the number of possibilities grew, as virtually all social networks are betting on the native video. But despite the increasing ad spending on Facebook videos, for example, King is still king.

YouTube Marketing
Image Source: Google Image

And the investment of the leading brands on ads from YouTube continues to increase. So Pixability data show how much they spent examining 10 major American brands last year. Walmart, for example, began the year strong, with an investment of only $ 600,000 during the first quarter but continued to increase throughout the year to reach $ 2,579,000 in the last quarter.

Also other brands such as Target and Walgreen followed a similar progression, and even if there are brands such as Amazon, which significantly decreased their advertising budget YouTube for 2015 ($ 1,741,000 for the first quarter to 162,000 in the fourth), the mean It remains very positive for the video platform. Among the top 10 brands they spent $ 2,868,000 in the first quarter, decreased during the second and third, and amounted to $ 5.09 million during the last.

In any case, I must say that the growth of the advertising revenue YouTube itself has stagnated: that is, the growth rate is not increasing the previous year, which simply tells us that the practice of placing ads on YouTube is customary among most of the brands and therefore the possibility of more limited growth in recent years. Thus, if in 2016 a rate of growth of 20.7% is estimated for 2017 will be only the 6’2%. Then it comes, as the highest total in the history eMarketer investment of 1,990,000 million in ads YouTube.

More worrying seems to YouTube increasingly monopolizing a smaller percentage of total revenue generated by online video ads: if 2015 was maintained at around 20%, is expected in 2016 down to 17.7%.

The TrueView ads, the fastest growing

In YouTube, brands are prioritizing an ad format specific video, whose growth has been meteoric: advertisers have invested 200% in the last quarter of 2015 compared to the previous. It is YouTube TrueView ads, that is, those that allow the viewer to jump after 5 seconds or displayed on display as related videos. A format, thus allowing the advertiser to pay only if the consumer has really interacted with the spot.

On the other hand, the social platform is to give greater prominence to the ads with buy buttons, which users can click to directly buy the products advertised. This is a new option; introduced just three months ago that YouTube wants to compete with other social networks in generating traffic to eCommerce. Although so far this format / buy button has not caught on with consumers, it is expected that as popularize its use becomes very attractive to advertisers on YouTube tool.