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.
Google's announcement of YouTube TV last week is one that will be seen as an inflection point for the world of media and advertising.
YouTube TV, originally code-named "Google Unplugged" is the latest “Virtual MVPD”, joining DirecTV Now, PlayStation Vue, Sling TV and offering a set of live TV channels through digital means (as opposed to traditional MVPDs who deliver television to the home through their own infrastructure like satellite, telecommunications lines and terrestrial cable) for a monthly fee.
While each of these players have their own unique features, they are generally providing the same set of offerings: a “skinny bundle” of TV networks, available for viewing on any internet connected device at a very competitive price point as compared to the larger bundle of many channels from your local cable provider. Basic feature set similarities aside, YouTube TV, by nature of its parent company, will create waves, not ripples across the sea of TV viewership, distribution, and advertising.
We all have certain activities we do in our daily and weekly lives that could stand for some enhancements.
Imagine if your hour-long grocery adventure each week could be completed in minutes. But will your cupboards be without the kids’ favorite snacks? Will paying for your purchase require a second job? Improvements are great, but you need to remain in charge and ensure that any incremental benefits are not wiped out by negatives. At clypd, we recognized that there is an opportunity to take this food shopping analogy to TV advertising.
The television advertising landscape has recently been flooded by a deluge of innovation. While this exciting activity is creating incremental opportunities by way of enhanced ad sales strategies, insightful analytics and a growing alignment with digital video, we mustn’t ignore the foundational tactics on which TV advertising is supported.
Video consumption through digital means has skyrocketed, thanks in part to Google’s absorption of YouTube in 2006. Meanwhile, television has also continued its upward growth, despite industry expectations. The higher media consumption patterns offer media companies, marketers, and technology companies a huge opportunity to unite the two watching streams, but it’s not without its challenges.
In my former life in the world of digital video advertising, we looked to leverage “cross-screen digital video” as we quickly recognized that “online video” was not going to be restricted to the personal computer. This proved to be true as folks watched the latest Boston snow storm reports from a work computer, then laughed at a Louis C.K. skit via an iPhone from the caboose of the disabled MBTA and later, enjoyed Sophia the First with their kids on an iPad.
Earlier this year, we announced the release of a price/volume curve to the platform's inventory analysis and media planning tools as a way to provide transparency and insights into the inventory available for a particular audience target.