The worst thing to happen to video seeding companies this year is the best thing for advertisers and agencies that use their services. YouTube changed their algorithm to thwart companies that send traffic to YouTube videos for a fee. One of their targets: monetization networks that credit users that watch YouTube videos. The viewer gets a game credit, money or a chance to win something of value. The advertiser gets the view. Simple enough, but the most integral stakeholder, YouTube, has its own ad platform to push, TrueView. And with the recent hiring of Susan Wojcicki, as YouTube’s new Senior VP, who in the past was responsible for Google ad sales, the crackdown on third-party views now has its biggest booster. If the message was missed, a post on YouTube’s blog made the consequences of view abuse from third parties clear:
If you're considering paying someone to increase your view count, you may want to think again. You probably won't get what you paid for," explains the post. "Views generated by some third-party businesses and services will not be counted on YouTube, and can lead to disciplinary action against your account, including removing your video or suspending your account.
Video Seeding Companies and the YouTube View Count
So then how are video seeding companies affected by YouTube’s clampdown? And why is it a plus for advertisers? Video seeding companies use a variety of tactics - paid placements and earned placements via digital PR, influencer outreach, and other social marketing strategies - to get YouTube views for their ad clients. Monetization networks are part of the paid buy mix for video seeding companies. They’re also the most economical, which helps to make up for much higher cost CPV’s bought by video seeding companies on other outlets, such as blogs and mobile.
With the restriction of third-party views from YouTube, monetization networks are no longer able to guarantee a one-to-one view ratio, which means for every incentivized view bought, less than one may result in a YouTube view. This type of YouTube view discrepancy is the bane of every video seeding company. But it’s the video seeding company’s job to solve it. This is where the silver lining appears.
As a company, we don’t see measureable view discrepancies from YouTube when we seed a video with multiple tactics (creative marketing integrations, PR and social influencer outreach) along with smartly placed paid media. So now video seeding companies have another powerful reason to work harder and be more creative to get a quality view registered on YouTube. If that means cutting into profit margins, pricing differently for different types of view delivery, so be it.
This is good news for advertisers, video seeding companies and YouTube, which will see their share of TrueView advertising increase. Some video seeding companies may throw in the towel. Others might shift to non YouTube-centric models. Pre-roll video anyone? I expect most video seeding companies will dig deep to offer even more value to advertisers and the agencies they serve.