Marketing Meta: Why More Companies Are Putting Money Into Advertising on Video Sharing Platforms Rather Than TV

When video sharing platforms like YouTube first came out, I remember how happy I was that I could watch stuff without ads breaking the momentum of whatever it is I was watching every 15 minutes. Lately, however, ads have become more and more aggressive on video sharing, with ads becoming a large source of revenue for YouTubers.

But why would major companies start advertising on channels that are unrelated to their product? What does deodorant have to do with PewDiePie? How is Johnny Walker related to the latest videogame coming out? They aren’t. What the companies do get, however, is clearer data on how many people see their ads.

Advertising on TV means you get a large audience, but there’s no real way to determine if people are actually watching. Advertising on YouTube however, they get almost instant feedback. Advertisers know if their ad was skipped, and how much of it was viewed before skipping. Additionally, unlike TV, which can have passive viewers, YT viewers are usually more active when it comes to paying attention.

Another factor is the concept of primetime. Unlike TV where advertisers fight over primetime slots, paying more for higher viewership, advertising on YouTube means that their ads play whenever someone is watching a video. You get sure views without the heavy costs that TV demands: definitely a win for advertisers!

In addition, advertisers also have more power over YouTubers than they do TV networks. The threat of an advertiser pulling out of a show or network will hurt, but it isn’t as devastating to a major network as it is to a YouTuber who relies on revenue from their videos. The threat of demonetization is one that YouTubers take very seriously, removing content that advertisers don’t approve of.

As a viewer, how do you feel this will affect the Video Sharing industry? Do you think it will inspire better, more developed content or will it hurt the platform as major companies will have indirect control over the creative content publishers put out?