YouTube Sees Massive Influx of Display Advertisers

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Someone finally gets some solid numbers out of YouTube’s notoriously mum parent company. Well done Bloomberg.  Apparently YouTube is doing well at drawing in new advertisers and has over the past year seen a 10x increase in advertisers. Advertisements are including both videos and other forms said Google’s Barry Salzman, managing director of media and platforms for the Americas. It’s because of the site’s massive reach and audience (some 130M+ last month).

With the economy slated to rebound this year marketing and advertising campaigns could suddenly find themselves bursting at the seams and looking for new places to put that extra cash. YouTube is the world’s second largest search engine and it makes sense to place ads there.

Google is squarely aimed at the display ad business now thanks to their acquisition of DoubleClick a couple years back and their more recent purchase of Teracent which bolsters targeting of ads.

The thing that is probably helping to drive new ad sales over at YouTube is the flexibility advertisers are now afforded. The site has implemented a ‘build your own ad’ feature which now allows advertisers to better create more YouTube specific ads. On top of that advertisers can join the Google network and reach an even wider audience (some 1M+ sites we’re told). That’s one heck of an online reach.

There’s already a move away from search advertising and towards display as major brands begin pumping money back into marketing. This means more ads moving from Google’s Adsense and into it’s Affiliate and content networks including YouTube.

The power of Google is the diversity offered. Ads on YouTube can be more interactive and focus on offering in-depth information in a compelling way while other ads in the network can be used for direct sales impact via click through to purchasing sites.

“YouTube is giving creative directors a much more innovative way to engage consumer brands,” said Salzman. That is obviously interesting to advertisers who have been lining up for the YouTube homepage which has recently been announced as sold out.

It’s funny that some advertisers see YouTube as a questionable venue for their ads due to the user-created content on the site. They believe that it could be detrimental to their brand if the ads were to appear next to something distasteful. But rarely do I ever connect an ad to the content I’m looking at on a site. In fact I generally disregard most ads unless I’m looking for something specific.

There are of course stories of large TV advertisers not wanting to be linked with specific shows or pulling advertising based on something that happens on a widely watched show which they see as offensive or inappropriate. With YouTube more focused on user-created content it could keep many large advertisers away. But then again, it doesn’t seem to be a major issue considering the growth that has been seen at YouTube.


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