When it comes to advertising dollars, TV still rules the roost. According to eMarketer, $60.5 billion per year is spent on television ads. So online video ads, which pull in $2.2 billion annually from advertisements, have a long way to go.
YouTube is trying to figure out ways to get there, according to the New York Times.
“We would love YouTube to be a much larger part of brands’ advertising budget and mix in the next year and the future than it is today,” said Lucas Watson, who was hired as YouTube’s vice president of online video global sales from Proctor & Gamble in June, the Times reports.
Watson was P&G’s head of digital strategy and brought with him digital marketing knowledge as well as info on the packaged-goods industry, a sector that has been slow to advertise online.
YouTube has the ability to reach a global market or to pinpoint a very specific target audience. But the Times notes that YouTube only has a short time to capitalize on this, since digital televisions will soon begin to provide interactive advertising to target audiences.
The HSN shopping network recently experimented with placing QR codes on televisions so consumers could shop directly from their screens, while PayPal and Microsoft recently partnered to make purchasing possible on the Xbox game console, according to Bloomberg. Colin Sebastian, an analyst at Robert W. Baird & Co. told Bloomberg that “content purchases on TVs and game consoles are a ‘huge’ opportunity if PayPal can integrate the technology in a way that is simple to use.”
“(YouTube) has an advantage now because it’s serving up one stream for one person and knows who that person is in most cases, but the other big networks are getting there,” said Jim Louderback, chief executive of Revision3, the web TV service, to the Times.
YouTube is only six years old and is ready to try out different types of advertising that television networks can’t or won’t experiment with, such as “a live-streamed ad campaign … choose-your-own-adventure videos, or user-created ads,” according to the Times.
“We’ve kind of tapped out the medium of television,” Watson told the Times, “but we’ve got years and years of brand new experiences that have yet to be conceived on YouTube.”