YouTube Sponsored Videos – Come and Get It

Posted by Andy Murray, Program Manager (Paid Search)


In between watching President-Elect Obama and skateboarding accidents on YouTube, you may have noticed something else.  YouTube is starting to look a lot like the search results page.  Google has used the functionality of AdWords to launch the new YouTube sponsored video product, which allows advertisers to bid on keywords that trigger their ad to appear on YouTube.  The ads appear in the “sponsored videos” section on the right rail, and sometimes above the organic results.  When clicking on the ad, the user never leaves the YouTube domain.  They land on a branded page which features a video of their choice.  This has many applications and can add real value to an advertiser’s overall search program.  As there is no video length limit, advertisers can really capitalize on each click and keep visitors on their branded YouTube page for as long as possible.  This is especially relevant when bringing a new product to market or re-positioning an existing product to an additional demographic.


YouTube has an extremely high number of daily visitors and visitor loyalty, as well as unique brand awareness in popular culture.  comScore recently reported that YouTube is now exceeding Yahoo! in overall search volume.  While the majority of searches performed on YouTube are not purchase/research oriented, this data still illustrates the viability of this distribution channel to provide significant volume and branded page views.


Major advertisers know and understand the value of a person watching a 30-second spot on a national broadcast.  For example, if it is worth $10 for a single person to watch a 30-second commercial, and an advertiser is able to attract video search clicks for $2.00, the advertiser can prove the ROI on this particular channel.  There is even extra relevance factored in as the person actively searched for the ad, or similar content, and chose to click on the advertiser’s particular ad.  This is especially useful for advertisers that do not sell products online, but have major Web presence, like auto manufacturers and motion picture companies.  These advertisers can identify the attributed worth of a video view, putting them steps closer to calculating ROI.


As this distribution channel is still in its formative years, there is a real opportunity for the early adopters to capitalize on the extremely high number of visitors on YouTube.  CPCs are low and the value is inherent.  So whether you’re the President-Elect, an aspiring skateboard professional, up-and-coming band, or a top advertising player, there’s opportunity to spread the word through YouTube sponsored videos.

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