Thursday, 21 April 2016

NDM News Story 59: Google claims YouTube ads are more effective than TV

http://www.theguardian.com/media/2016/apr/20/google-youtube-ads-tv
Google’s Matt Brittin claimed that in 80% of cases YouTube ads were far more effective than TV ads in driving sales.

Matt Brittin, Google’s top-ranking European executive, is set to unveil a report analysing ad campaigns across eight countries which proves the effectiveness of You Tube's advertising strategies. Google has, on several occasions, openly discussed that TV adverts are not as useful as You Tubes adverts and have been encouraging advertisers to invest more in You Tube. There are comments against You Tube, claiming that the majority of You Tube's videos are low value, user generated content, meaning that their demographics are not useful enough for the advertisers to attract the customers that they want.

  • they should be spending a quarter of their TV ad budget on YouTube instead if they wanted to reach 16- to 24-year-olds.
  • YouTube only really accounts for 10.3% of time spent by 16- to 24-year-olds consuming video.
  • YouTube accounts for just 1.4% of the time that demographic spends actually viewing video advertising.
The advertising industry is gaining a lot of focus from society as with people having the "things should be free" ideology, advertising seems to be the most prominent method of gaining revenue. You Tube as a form of new and digital media, is posing a threat to the traditional television as big brand, Google, is voicing out their opinions of how You Tube is a much more effective platform for advertisers.

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