Television advertising remains the most powerful branding vehicle as there is no better way to realize the reach of that medium. Digital advertising, while lacking the same reach does provide opportunity for specific targeting, granular measurement, ad unit customization and interactivity. The lean-back environment of the television viewer does not necessarily lend itself for an interactive ad experience, but the digital delivery of YouTube TV does allow for ads customized on the viewer’s audience characteristics or on their behavior.
The initial carriage agreements provide YouTube with ad sales rights for the inventory which otherwise would have been earmarked for local advertising by the MVPD. There is also an undisclosed revenue share between YouTube and the content owner for those YouTube-sold ads. There will likely be further coordination between these parties involving addressable ad targeting for the content owner and bartering of ad inventory.