Emily Chang/West Ranch High School 10th
The five seconds that come before the “skip ad” button on a YouTube video are easily the longest five seconds of my life. Like many people, I just want to get the actual video started. But once in a while, there will be an ad that intrigues me and I stay with it to the end. How in the world does YouTube get me, an avid ad-skipper, to actually become interested in the commercial?
It is all a small part in the advertising revolution that is bringing revenue to both YouTube and businesses all over. Traditionally, TV commercials have been the most economically advised means of advertising for businesses. However, recent reports by Google show that YouTube advertising is a better source for consistent return of investment (ROI) compared to televised commercials.
While televised advertising was designed to reach the masses, YouTube advertising reinvents this approach. YouTube allows businesses to target commercials to certain demographics based on collected data such as watch history, age, and gender. Businesses direct their ads to people more likely to respond. They can also put their ads under a certain topic, such as a L’oreal ad before makeup tutorials. It allows companies to get the most out of the money they spend on ads by only showing them to people likely to respond.
Although the main benefit of televised commercials is reaching a large number of people, a Nielson report shows that YouTube actually reaches more adults (ages 18-34) than any cable network. YouTube’s user base is 1.3 billion people, and the average number of videos watched daily is nearing five billion. With constantly improving algorithms and new endeavors such as YouTube Red or YouTube TV, this platform is not slowing down anytime soon.
Even with all of this information, the big question still lies unanswered: should companies stop advertising on television and switch solely to YouTube? Not necessarily.
However, it’s suggested by Google to put 24% of your budget for televised commercials into YouTube advertisements. It is an investment that will bring great returns in the end.
In essence, YouTube is an appealing way to advertise because of its large consumer reach and the ability to refine who gets to see the ad based on factors such as demographics or video topic. While television has been the primary outlet for advertising since its inception, YouTube is an up-and-coming media platform that just may knock it off its pedestal.
<Emily Chang/West Ranch High School 10th