YouTube threw a coming out party of sorts to hundreds of top ad industry execs in New York City this week. The event was called 'Videocracy,' and it's the largest ever advertiser event thrown by Google which bought YouTube for $1.6 billion dollars two years ago. This event--a kind of meet-and-greet for the ad community--was for execs to get to know what YouTube has to offer.
Bottom line: YouTube dominates online video: it has 68 million unique monthly users, billions and billions of page views, and by far the largest online video marketshare, more than one third. But those eyeballs haven't yet translated into ad dollars. Google doesn't break out how much revenue YouTube video brings in, but analysts have told me that it's just a couple hundred millions of dollars so far. And obviously that means YouTube has huge potential.
YouTube showed potential advertisers and ad agencies how they can target very specific audiences across a range of content. They can either put ads on a specific show, or sponsor an event--like American Expressdid with New York Fashion Week coverage. And, YouTube then delivers very specific information about who watched what, for how long, and how engaged they were with the content and the ad. Google Analytics--which provides detailed info on search ads--does the same for video ads here.
And then there's the misperception that YouTube is all home videos of sleepy cats. (Not that there's anything wrong with those videos, they're just not advertisers cup of tea). This presentation was largely to present YouTube's 100-plus content partners-- including CBS , Discovery, National Geographic, the NBA, the NHL, Reuters, Martha Stewart, Oprah's Harpo, and Playboy . (That's just an assortment I found interesting). Now YouTube has had trouble getting content from the big media companies, including CNBC's parent, NBC Universal, but it's worth noting that YouTube has made deals with production houses such as Carsey Werner ("Cosby Show," "3rd Rock from the Sun," "That 70s Show") that supply the big media companies.
And YouTube has already used this content and its impressive metrics measurements to snag advertisers including American Express , HP ,General Mills , Pepsi etc. I'm sure they'll attract many more. Ads on Online video content are in tight supply, and in high demand, and YouTube's got more than anyone.
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