This week on The Reel Web we're going to be cover a few online video industry news items from the past week including more research that shows an increase in advertiser/marketer spending towards online video. We'll also be taking a look at a recent YouTube partner survey that seems to hint at a new idea for promoting Partner videos. It sounds great on the surface, but we can see some problems on the horizon.
YouTube Survey Says...
So recently I got a satisfaction survey from Youtube, asking me to evaluate a few things about their site. Maybe some of you received the same one. I completed the survey and, because I had a bit of spare time, ended up taking the optional section at the end as well. The very last question went something like:
"If Google would do a one-for-one match of your AdSense revenue that you would take and put back into Google AdWords to promote your video content, would you do it?"
Now, at first this sounded like a pretty cool idea (especially as many YouTube Partners have been expressing concerns that recent YouTube changes are adversely affecting their views & revenues), so I answered "yes, but the more I thought about it the more problematic it seemed.
Let me try to simplify the question with an example. If you made one hundred dollars this month on Youtube, would you rather take that one hundred dollars cash or allow Google to put two hundred dollars credit into your Adwords account to promote your video? As I said before, at first that sounds great. For a few hundred dollars, you could potentially get a dramatic increase in exposure and profits. However, the main concern of partners isn't discoverability directly, but the loss in income as a result.
The Inflation Effect
Additionally, the overall effect on the advertising economy of Youtube would be pretty negative in the long run. What would eventually happen is that everything would cost twice as much to compensate for the flood of "free" advertising. So what we would likely see is a brief, but strong spike in advertising and exposure which will eventually be brought back to normal by the increase in cost. In the end, everyone is back to square one with one exception: You now have to spend money just to keep up with all the people whom are investing in Adwords. Instead of that extra money being an advantage over your competitors, it will eventually become a requirement just to keep your proverbial head above water, and no one is going to like that.
Really the only party that will benefit consistently would be Google, since advertisers would now have to pay double the former rate for views. What was previously five cents per click will become ten cents, etc. This wouldn't technically apply to everyone, since Google will be covering the other half for most of us. However, advertisers who are paying fully out of pocket are going to feel the pain, as well as effectively doubling Google's profits in that area.
No need to freak out just yet, though. There are no other indications that this is actually going to happen, aside from that one survey question.
Huzzah! More Advertiser Video Adoption!
I try not to inundate these posts with statistics every week, but it's pretty difficult with new and relevant ones always coming out. Last week statistics emerged that suggested advertisers are becoming more and more likely to spend money on online video advertising. Brightroll reports that 64% of advertisers said that online video advertising was just as viable for them as TV marketing. Apparently, it has been equally as successful, and 30% of advertisers say that they expect their online marketing campaigns to outperform TV marketing. Of course, this means that the majority of advertisers don't think that way. In any case, the report states that online marketing dollars will increse by 38% and keep climbing from there.
This is great news all around, for both marketers and content creators. If you're a marketer, get in the game while the prices are still lower. If you're a content creator, keep making great content, because there's a good chance that someone out there wants to advertise against it.
Money Talks: How to Make Money on YouTube
For those of you whom love to make money as a YouTube partner, here is a great post from our friend and contributor - Kevin Nalty. You may remember him from a few of our videos. On his blog he lists the myriad ways that you can make money from videos on Youtube. If you're even remotely interested in some extra revenue from your videos, you should definitely give his blog a look.
QUESTION: Is a 1:1 match from our AdSense account for AdWords advertising a good idea for promotion?