CES Panel: Brand Advertisers About To Stream Onto YouTube

Jan 6 2014, 7:46pm CST | by

In the last couple of years, YouTube has rapidly evolved from a huge but random collection of videos to a huge collection of videos organized into channels. That has gotten the full attention of both content creators and advertisers, not to mention viewers.

But exactly who’s making money on YouTube and how, and what’s going to happen this year? That’s what a panel titled “The Power of YouTube: Unlocking the power of programming, premium content and advertising” at the Consumer Electronics Show in Las Vegas sought to answer.

On the large panel were moderator Sun Jen Yung, managing director and head of digital media & Internet for Headwaters; Jason Kirk, global head of business development at ZEFR, a software company that helps rights holders on YouTube identify their content that has been uploaded and help marketers identify their biggest fansUrs Cete, managing director of Bertelsmann Digital Media Investments, which has invested in various next-generation TV startups;  Michael Chiang, senior vice president of strategy and operations at Defy Media, a video network created from last October’s merger of Break Media and Alloy; Mark Himmelsbach, COO of IPG Mediabrands Publishing; Rob Sandie, CEO and cofounder of vidIQ; and Margaret Laney, chief marketing officer of AwesomenessTV, the largest YouTube multi-channel network that was acquired by Dreamworks last year.

Q: How has the state of YouTube content now?

Laney: It’s no longer seen as the place where there’s only cat videos. The sale of AwesomenessTV was the tipping point for traditional media. In the zeitgeist of Hollywood, YouTube has become much more exciting–both as a platform for video and for marketing.

Kirk: There was the assumption that all these videos were uploaded by pirates. But now, not only do they keep them up, they’re monetizing them. That power is now too big to ignore. Two years ago, they were looking at these people as pirates; now they’re fans they want to encourage.

Chiang: It’s still an era of “throw stuff against the wall and see what happens.” What’s really interesting is that authenticity still matters, and it will be interesting to see where that goes.

Sandie: Advertisers now don’t want to just buy a viewer, they want to know how to engage them more.

Q: What kind of content is most successful on YouTube today? My sons are watching game-play videos like League of Legends and Minecraft. My own peer group of rowers, we want endless minutes of rowing on YouTube.

Cete: Gaming and music work very well. It’s not the fully professional, “take the star from TV and put ‘em on YouTube.”

Laney: Niche content seems to work really well. Our No. 1 show is “Cheerleaders.” It taps into a community that has been ignored. Buzzfeed, too–if there’s anyone that knows what works on YouTube, it’s Buzzfeed. Throwing a mainstream celebrity on YouTube–we tried it, it doesn’t work. Matching someone like that with a YouTube star works best.

Chiang: There’s many, many things that are working. It’s more about the demographics. It’s young male and young female. So the question is how do you as a marketer align yourself around that.

Q: What’s driving success of videos?

Chiang: Some are very SEO-driven, others are just popular searches like twerking.

Q: What has made the multi-channel networks on YouTube so successful and what will be the challenges in the next few years?

Chiang: Profitability.

Cete: YouTube is low-margin, huge traffic that you use to create a brand and then make money somewhere else. To only live on the money YouTube wires you every month, that won’t really work for an investor./>/>

Laney: Agreed. The next frontier for us and Dreamworks is how can we reward people in our network with straight-up money?

Kirk: We started off as movie clips and still have that channel. Now we have three channels, so we’re not really a multi-channel network. We went the software route because we did run the numbers and sharing with the studio and YouTube, it didn’t look as good at the bottom (line).

Q: What companies are doing the right things?

Kirk: Tastemade and Stylehaul are niche and can turn it into something.

Cete: Now is the year to prove whether you can do a network at scale.

Laney: Even Maker, which has really scaled and has verticalized, they’re looking at an off-YouTube strategy. There’s still a lot of room for a lot of healthy competition in the space.

Q: Will the long-term future of YouTube be a bunch of channels or something more like regular TV?

Cete: For kids, it is like cable TV.

Q: Are brands going to get on YouTube to a greater degree?

Laney: There’s a lot of great stuff happening with brands. Like Red Bull. We’re going to see a lot more of that in the future. Brand advertisers realize there’s so many eyeballs there that they’d be crazy not to take advantage of it. Plus, it’s pretty cheap compared with network TV. You can get a lot done with a lot less money. I’m very optimistic about brands moving a lot more of their spend into YouTube.

Sandie: Brands have been trained to create 15-second and 30-second ads. The brands that make a shift into authenticity, making videos of whatever length, that could be really exciting.

Kirk: Dove had 200 million views with its Faces (Real Beauty Sketches, technically) campaign. Facebook and Twitter took a little spend because they were more open with their APIs so you could do more. YouTube will get more and more open.

Q: Are the creators getting paid adequately from YouTube or is it more of a content platform for bigger brands?

Chiang: Traditionally what worked on YouTube was to have an extremely low cost base.

Cete: The people who make significant money on YouTube are not average Joes and Janes. They’re the equivalent of TV stars on YouTube.

Q: Was the YouTube channel initiative successful? They basically removed all reference to it last fall./>/>

Kirk: I think it was very successful because it got a lot of people thinking about YouTube. It was a really great marketing campaign, that’s the way to look at it. We got a lot of deal flow, advertisers looking at YouTube like they were looking at Twitter and Facebook.

Cete: Without this program, we wouldn’t be here now.

Laney: It’s like the pilot program on TV. You start out with a hundred pilots and end up with five or 10.

Q: Are MCNs still an attractive investment opportunity, and are there other attractive investment opportunities on YouTube?

Cete: There’s still a lot of opportunities. Like what will be the Buddy Media or similar white space for YouTube that it was for Facebook.

Q: (Missed the question but seemed to have to do with which video platforms will do well next year.)

Sandie: You’re seeing real ROI from advertising on YouTube.

Laney: I think Facebook is going to be a big winner from this platform. There are a lot of disgruntled YouTube stars. The early adopters will be experimenting on the Facebook video platform.

Q: One prediction for content on YouTube in the next year?

Cete: You’ll see traditional magazines create capability for video, either on YouTube or other portals.

Kirk: Fan relationship management will be important.

Laney: This will be the year of the YouTube star penetrating traditional media. A lot more YouTube brands will tie into television and movies and the big media conglomerates.

Sandie: You’ll see some brands really connecting with people through YouTube channels.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Mummy wearing jewellery unearthed in Egypt
London, Nov 23 (IANS) Spanish archaeologists have discovered about 4,000 years old female mummy wearing rare jewellery in Egypt.
 
 
Exercise and fasting could boost brain's functions
Washington, Nov 23 (IANS) Exercise along with occasional fasting is good for boosting the brain's neurons, shows a new research.
 
 
One infant dies in Pakistan hospital
Islamabad, Nov 23 (IANS) One more infant died due to lack of oxygen in an incubator and negligence of the hospital administration in Pakistan, bringing the number of such deaths to 19 in the past five days.
 
 
American whiskey faces challenge in whisky-gulping India
Washington, Nov 23 (IANS) For the most part Indians love things American, but when it comes to their tipple, the world's largest whisky drinkers usually go for Scotch or their very own home-made brands.
 
 
 

Latest from the Network

Boko Haram kills 48 Nigerian fishermen
Abuja, Nov 23 (IANS) Members of Nigeria's armed terrorist group Boko Haram have killed 48 people in an attack on fish sellers near the border with Chad, a media report said Sunday. The attack took place Thursday, but...
Read more on Politics Balla
 
45 killed in Afghanistan suicide attack
Kabul, Nov 23 (IANS) At least 45 people were killed and 60 wounded Sunday in a suicide bomb attack at a volleyball ground in Afghanistan's Paktika province, officials said. "Afghan President Mohammad Ashraf Ghani...
Read more on Politics Balla
 
Switzerland win Davis Cup
Lille (France), Nov 23 (IANS) Switzerland defeated France 3-1 to win the 2014 Davis Cup final at the indoor clay courts of the Stade Pierre Mauroy here Sunday. It is Switzerland's first title at the prestigious event...
Read more on Sport Balla
 
Iggy Pop tries to twerk
Iggy Pop enjoys twerking around his house. The 67-year-old musician has said he was ''proud'' when Debbie Harry made comments earlier this year saying he had been twerking for his whole life. In an interview with The...
Read more on Celebrity Balla
 
Olly Murs still gets starstruck
Olly Murs still gets starstruck. The 'Wrapped Up' singer has met his fair share of celebrities since appearing on 'The X Factor' in 2009, but confessed he still feels jittery when he meets people he really admires such...
Read more on Celebrity Balla
 
John Mayer helped Katherine Heigl to get husband to commit
Katherine Heigl used John Mayer to convince her husband to commit to her. The 'State of Affairs' star - who has been married to Josh Kelley since December 2009 - has admitted that she threatened her now-husband to...
Read more on Celebrity Balla
 
Baby boy for Kourtney Kardashian?
Kourtney Kardashian is believed to be having a baby boy. The 'Keeping Up With The Kardashians' star - who is currently pregnant with her third child by Scott Disick - was reportedly spotted stocking up on blue outfits...
Read more on Celebrity Balla
 
Mila Kunis: Jupiter Ascending was like boot camp
Mila Kunis and Channing Tatum ''got in trouble'' for losing too much weight filming 'Jupiter Ascending'. The 31-year-old actress - who has two-month-old daughter Wyatt with fiancé Ashton Kutcher - admits the futuristic...
Read more on Movie Balla
 
Force India finish sixth in 2014
Abu Dhabi, Nov 23 (IANS) Formula 1 team Force India ended their 2014 season in sixth position in the constructors' championship as its drivers Sergio Perez and Nico Hulkenberg brought home 28 points from the season-...
Read more on Sport Balla
 
Hamilton seals F1 drivers' title with Abu Dhabi win
Abu Dhabi, Nov 23 (IANS) British racing driver Lewis Hamilton clinched his second Formula 1 drivers' title as he comprehensively won the season-ending Abu Dhabi Grand Prix at the 5.5 km Yas Marina Circuit here Sunday...
Read more on Sport Balla