Google’s key income source is Ads. In 2014 Google generated $56.09 Billion through ads alone. YouTube has it’s own system of ads but has been finding difficult to generate a profit, despite generating $4 Billion in 2014.
The enormous infrastructure required to stream hundreds of millions of hours worth of video content everyday not to mention receive and process 1 hour of video every second is a hugely expensive undertaking and commitment. YouTube has been getting plenty of competition from Facebook this past year, but is still king of online video.
In a effort to improve the income potential of YouTube, Google is expanding the product offering on YouTube. Firstly with it’s upcoming subscription based ad-free offering and the more recently announced a move in the opposite direction with ‘in-video product ads’.
One of YouTube’s many video genres communities is the product review video. Produced by amateur enthusiasts and professionals in all areas of interest, these channels and videos gather legions followers and millions of views. To the point that many manufactures send the reviewers samples of their latest wares to get (hopefully) get a good review. Cameras, computers, make-up everything is up for review.
There is an audience, people are watching. Why read a review on Amazon, posted under an anonymous username when you can watch a trusted reviewer on YouTube with a dedicated following.
With the audience in place the next logical step for YouTube is to allow viewers to buy the product they are watching a video about – directly from the video.
While many might be worried that YouTube will become overrun with ads overnight, ads in videos is something that the video creator has to opt into.
Graphically in-video ads will be very much like the YouTube Cards system. Cards are a mobile friendly evolution of the Annotation overlays which were introduced way back in 2008.
Like cards and annotations and cards, the planned products ads can be dismissed with a click.
Integrating Existing Ads
Time to get excited about getting your ads on YouTube videos? Not yet.
Google will be deciding what ads go on what videos. The in-video ads will be an extension of the existing Google Ads system, which operates on an auction system. However the new offering is broadening the available ad ‘real estate’ potentially making for a more varied Google Ads environment.
YouTube for Product Video
YouTube is the perfect place to showcase any number of products. Whether you have a single new game changer, or a whole catalog of products, Workshop Media can help you make the most of the platform.
From concept through to production and on to upload to YouTube, Workshop Media is your Video Partner for all types of video marketing projects.
Get in touch today if you want to promote your products through video, have questions or maybe just an idea for a project you need a expert eye on.