YouTube is set to change up the way it's placing ads on its video channels. Move over demographic targeting, hello Sponsorship deals. A sponsorship package includes companion display ads, overlay and pre-rolls to give a brand complete placement on certain channels.
The new sponsorship deal is more of a keyword-based approach to reaching certain audiences based on the channel content. Automotive reaches gearheads, celebrity gossip hits Hollywood hopefuls, Video Games reaches, well, gamers. The sponsorship deals will still be rev-share with the channels and YouTube will continue to put money into initial production for some channels it thinks have a good chance of becoming profitable over time.
Some examples of sponsoring brands include Unilever on Young Hollywood channels, Toyota and GM on Moms and Automotive channels.
That means there looks to be an influx of capital for good content-bearing channels on YouTube. I've already got a plan for one myself. Hopefully, it'll be sponsored by a big name brand and make me some cash so I don't have to keep manning the fry station at my local fast food place in order to make ends meet.
Seriously, I'm not a fry cook, but you could, if you've got the content, get in on this. On the flip side, if you're a brand looking to hit a specific group of people that have a particular interest, instead of a specific age group or geographic location, this could be a way for you to get a foot in the door over at YouTube and start getting your message out. Of course, estimates put a year of sponsorship at $4-6 million with pre-roll CPMs reaching $20, so dig deep in those pockets.