YouTube’s success graph over the years, seems to resemble that of the stock markets. It’s never a strong, consistent line. There are phases of strong growth, consecutively followed by lags. That said, it’s not a medium that advertisers can ignore any longer. Here are the reasons:
1. It’s not just an alternative but a complement to television: If ads have become popular, YouTube has had a good role to play in their success story. Here’s a stat call.
- More than 1 billion unique users visit YouTube each month. That’s over 13% of the world population.
- And over 6 billion hours of YouTube videos are watched every month. That’s about an hour for every person on earth.
SuperBowl ads possibly owe their popularity, more to YouTube than to television.
2. Other social media have supported its growth instead of competing with it: More than 30 billion pieces of content are shared on Facebook each month. And these include posts, web links, pictures and videos. Facebook understands the power of video well and possibly that’s what it tried to bank on with its lookback videos too. Instant messaging services like WhatsApp have helped promote YouTube videos too. YouTube, therefore, faces competition, from very limited quarters.
3. YouTube has matured: For an advertiser, YouTube has come of age. The stats that it provides are not just limited to the number of views and clicks but rather engagement. Today you can even get data on what percentage of your viewers actually watched 100% of your videos. Based on the engagement numbers, you can take a marketing call on what’s popular and what’s not. The insights can even guide your next production. Besides, in the case of TrueView ads, advertisers only pay if the user watches at least 30 seconds (or the entire ad in case of less than 30 seconds ads). Again, a win for spend based on engagement. Not surprisingly, YouTube’s revenues in 2013 were estimated to grow 51% than the previous year.
YouTube still contributes in single digit percentages to Google’s annual revenues. However, it’s a medium that will survive and grow. As an advertiser, it definitely is something to keep a close eye on.