YouTube’s Video Advertising Strategy

Source: Youtube

You might think YouTube’s video adervertising is a ‘completely failed’ design: you could skip the video after 5 seconds, and the owner of the advertisment does not pay for this! You might also think ‘how considerable’ is YouTube that ‘sacrificing’ own profit in exchange of user experience. Alas, this is not as simple as that. On the contrary, this model is well-accepted by advertiser and immensely profitable, and may not so considerable for users:

More attraction than usual advertisement

Comparing to other websites with 1 or 2 minutes’ advertisments, when video viewers may want to do something else, YouTube’s 5 seconds skippable advertisments are actually more likely to attract your full attention, and lead you to watch this 5 seconds advertisment. In most cases, you even put your mouse onto the skip button and wait for 5 second! This is exactly the advertiser want to achieve.

Easier and more explict way to evaluate the advertisment

By evaluating the propotion of people who skip the advertisment after 5 seconds (negative feedback), and who haven’t skipped immediately, advertisers could easily distinguish the target, potential, and non-relevant clients. Millions of users will automatically rate your advertisment.

Pay only for the true views

Only paying for the advertisment that has been viewed with genuine attention (viewed more than 30 seconds), and providing informations from both interested and not interested viewers, advertisers are willing to pay more — although paying advertisments are less,the charge is much higher — benefiting to both advertisers and YouTube.

Encouraging advertisments to be more creative

Unlike the fixed pricing model, the ‘pay only for true view’ encourages advertisers to creat more attractive advertisments. This could also increase the user experience to a certain extent.

Actually there are more advertisments

Source: YouTube

As a counter point to increasing users experience, we may see that there is actually more advertisments on YouTube video. The exhibition shows above is an example: more than 20 advertisments in 2 hours’ video! These insert advertisments within the video, which is even more annoying than 2 minutes’ unskippable advertisment at the front of the video. Thus, YouTube is neither ‘considerable’ for users, nor ‘sacrificing’ own interests.

Thanks for your time!

Zeyang ZHANG (Leo)

3rd Dec. 2017