YouTube is proving to be a challenging advertising platform for Google. Google acquired YouTube in 2006, signaling big ambitions for online video advertising. However, they are running into a series of problems with copyright infringement issues and the fact that many online agencies and advertisers are still weary of this relatively new medium.
Some of the snags Google is running into include:
- Advertisers are reluctant to put their ads on YouTube due to fear of questionable content of amateur videos. For example, can you imagine a Folgers video ad prior to watching “Coffee causes heart attacks”? Or a Disney family friendly ads displayed before some provocative video of a celebrity?
- Copyright litigation. Viacom Inc. sued Google last year because unauthorized television and movie clips were posted by YouTube users.
- Inefficient sales process. The rapid growth of Google has hindered the sales systems.
Google has launched “Operation Spaghetti” to unclutter the mess that YouTube has been for them. Even if these problems are solved, will advertisers see a benefit to attaching ads to online videos on YouTube? This would be an extremely cumbersome process if we had to evaluate each ad prior to placing a video ad for our clients.
- Will YouTube filter videos for suitable advertisers? Maybe
- Will it rely on the YouTube community? Doubtful!
- Perhaps a combination. We’ll see…
In the meantime, agencies and advertisers running video ads have other options. And knowing Google, they have a plan already in the works to further monetize YouTube. Stay tuned.
Unfortunately, I still see marketers struggle to communicate the value of online marketing and how it drives bottom-line results. Much of this is caused by a lack of standard metrics by which to measure and report impact…especially when a direct response conversion is not clearly evident.
Most CEO’s and CFO’s are focused on driving efficiency and scale to acheive revenue growth. But when it comes to marketing, they need to be able to make a connection between the work ($) that is being done and the revenue that will be produce as a result.
Bottom line.
With studies suggesting that merely 2/3 of all marketers include metrics in their marketing plans…a need for more standard measurement is very necessary. So, what do you track? The ultimate answer is Everything…but realistically, try focusing on things that will move the needle and provide leading indicators of revenue. (Stuff that C-Levels discuss).
Here are a 10 tactical examples that you might not be considering when establishing metrics for your online marketing campaigns:
- Brand impact (i.e., increased brand awareness, intent or favorability)
- Number of impressions
- Position of paid listing
- Number of clicks
- Ratio of new to returning visitors
- Amount of increased website traffic
- Duration of website visits
- Amount of increased traffic to physical store
- Amount of increased volume to call center
- Number of leads generated for products sold online
- Number of leads generated for products sold offline
- Number of immediate sales generated for products sold online
Collecting this data will create trends and insight that will translate across most organizations.
Marketers know that behavioral targeting gets better results. Publishers like that behavioral targeting delivers more revenue. Consumers find the ads relevant to them and their searches. It’s no surprise that behavioral targeting is expected to grow.
According to eMarketer, $1.2 billion is expected to be spent this year alone on behavioral targeting.
According to senior marketing executives, types of data used to target include:
-> Demographics
-> Geography
-> Past purchase history
-> Past contact history
-> Web data usage
-> Primary research attitudes
-> Channel preference
Our company, WebsiteBiz, utilizes behavioral target for the Biltmore Estate.
It is no surpise to me that more TV, Print, and Radio dollars are being reallocted to online.
Why?
Advertisers care more about what works; online advertising is quantifiable, and reduces risk.
The Pay-per-click models continue to attract advertisers as the cost is only in the click, not the impression. And with the new forms of user driven content centric advertising online, a sustaining and profitable platform will evolve.
The facts speak for themselves; this new study from Outsell reinforces the trend…
Online advertising growth rises again
According to a recent analyst report, the speed of online advertising’s growth, its benefit to offline campaigns, and recent online ad spending increases from major marketers all seem to be converging. Here’s the supporting stats:
> Online media spend average is 5% up from 3% last year
> Spending growth expected to accelerate to 10% faster than expected
> $55 Billion globally - estimated online advertising by 2010
> Equivalent to a 27% compounded annual growth rate over 2005
So what about Search - is it becoming intertwined? Read on…
Continue reading ‘Growth of Online Dollars over Offline in 06′
