What's Next For YouTube Under Reported New Leader Susan Wojcicki?

Feb 5 2014, 12:58pm CST | by

What's Next For YouTube Under Reported New Leader Susan Wojcicki?

Google’s YouTube video service has a new boss, according to at least two reports, in a move that’s likely to sharpen the search giant’s focus on capturing more advertising from television.

Susan Wojcicki, Google’s senior vice president of advertising and commerce and one of its earliest employees, will take over as head of YouTube, according The Information and Re/code. Wojcicki would succeed Salar Kamangar, an even earlier Google employee who has headed YouTube since 2010 and is expected to move to another job at Google, possibly at its venture capital arm.

The move isn’t entirely a surprise, since there has been continual uncertainty among marketers and ad agencies for at least the past year about who controls the advertising on YouTube. Although the move likely signals an even greater focus on YouTube as a key player in Google’s greater advertising ambitions, it’s not yet apparent that it will mean big changes at the unit.

After all, despite a constant grumbling by YouTube video producers about ad prices and YouTube’s large cut of same, the video site’s revenues have by all accounts been growing by leaps and bounds. Revenues jumped 51% to $5.6 billion last year, according to eMarketer.

And while YouTube’s ad prices have plateaued or declined thanks to the seemingly infinite number of videos uploaded daily, they’re still an order of magnitude or two higher than standard display ads. Even more important, they attract advertisers more interested in promoting their brands for purchase consideration down the road, in contrast to search ads that prompt an immediate click and sale. The former, image-oriented ads still dominate in traditional media, such as slick magazines and especially television, which at $200 billion worldwide still dwarfs online advertising.

Still, Google clearly has even bigger hopes for YouTube. For the past couple of years, YouTube has been courting more professional, Hollywood-style content from the likes of Amy Poehler and Madonna. But that push for more TV-like channels hasn’t taken off as much as Google had hoped, despite the opening of a glitzy 41,000-square-foot production studio in Los Angeles and other locations.

So more recently, in recognition that the most popular videos and channels on the site are mostly homegrown talent, YouTube has tried to persuade big brand marketers from GE to Unilever to create branded channels and videos that fit the less scripted, more free-form nature of the most popular YouTube videos. This year, Google will open a new YouTube production facility in New York aimed at pushing that initiative ahead.

Google and YouTube aren’t yet confirming or talking about the new arrangement, but the move potentially makes Google’s management situation clearer. Wojcicki had shared the same title as Sridhar Ramaswamy, who early last year joined CEO Larry Page’s inner circle of executives, known as the L Team. Ramaswamy has been more focused on the commerce side, with Wojcicki running both search and display ad products.

While some observers believe YouTube needs to attract flashier ads of the sort that work on television, others believe the key will be crafting more ad formats that fit the medium better than 30-second spots. Some of the most popular videos on YouTube are in fact ads, such as Unilever’s Dove Real Beauty Sketches and Red Bull’s Stratos space-jumping sponsorship, that run for several minutes. The appointment of Wojcicki, a longtime product executive in whom insiders say Page has great confidence–she rented out part of her house to Page and cofounder Sergey Brin early on when Google moved out of Stanford–could indicate a greater emphasis on development of new ad formats and methods of targeting and measuring them.

Under Wojcicki’s watch, new ad formats and methods of measuring their impact have migrated from YouTube to the rest of Google’s non-search advertising system, in particular its display ad network that syndicates ads to about 2 million other websites. The philosophy behind YouTube’s popular TrueView ads that run before videos play, which users can skip and advertisers pay for only when they’re viewed, has infused ads on the Google Display Network as well.

Developed under Wojcicki and longtime display VP Neal Mohan, so-called engagement ads, which feature videos, games, and even app-like experiences inside display-ad formats, play only when they’re hovered over at least two seconds. They command about double the usual display-ad rates. What’s more, Google recently offered the option for advertisers to pay only for ads that have actually been viewed.

Wojcicki provided some hints on what might come next in a recent interview for my Forbes story on Google’s push into brand advertising. Some samples:

[Online] is a different medium. The Red Bull campaign, the Samsung live streaming, these aren’t things that would have happened on TV. So just like it didn’t work to just take a radio ad and put it on TV, they had to change the creatives. It’s the same online. The creatives have to be dynamic and interactive and timely.

Things are starting to change. Like Burberry Kisses, or theSamsung ad or the Dove ad, or the Red Bull ad. These are really dynamic, and they’re really timely. They’re in the moment, and people are able to take advantage of that.

We’re not just trying to enable YouTube to reach the next generation, we’re trying to enable advertising across the entire Web to reach that next generation. A large brand or advertiser can’t reach all these individual sites, so how can we aggregate it for them so they can reach the right audiences right at the time they’re interested.

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

Soyuz rocket carrying two Galileo satellites lifts off
Brussels, Aug 22 (IANS) A Soyuz rocket carrying two Galileo satellites, the fifth and sixth of Europe's Galileo global satellite navigation system, lifted off from the spaceport in French Guiana Friday, the European Space Agency (ESA) has announced.
 
 
Fresh cases of Ebola recorded in Nigeria: Official
Abuja, Aug 22 (IANS) Fresh cases of the Ebola virus disease have been recorded in Nigeria, where the highly contagious disease has already claimed five lives, Minister of Health Onyebuchi Chukwu said Friday.
 
 
Fuel cell technology gets a boost
Washington, Aug 22 (IANS) In an impetus for fuel cell technology to build "smart" cars, scientists at Stanford University have developed a low-cost, emissions-free device that uses an ordinary AAA battery to produce hydrogen by water electrolysis.
 
 
3D-printed technology to make drug delivery better
Washington, Aug 22 (IANS) The US researchers have developed an innovative method for using affordable, consumer-grade 3D printers and materials to fabricate custom medical implants that can contain antibacterial and chemotherapeutic compounds for targeted drug delivery.
 
 
 

Latest from the Network

Hamas executes 18 alleged collaborators with Israel
Gaza, Aug 22 (IANS/EFE) Palestinian militias Friday executed 18 people accused of collaborating with Israel, 48 hours after three top military leaders of the Islamic Palestinian movement Hamas were killed in an Israeli...
Read more on Politics Balla
 
27 killed in CAR gold mine collapse
Yaounde, Aug 22 (IANS) At least 27 miners have been killed in a gold mine collapse in the Central African Republic (CAR), authorities said Friday. The Ndassima mine is situated 400 km north of the country's capital...
Read more on Politics Balla
 
Austrian humanitarian aid for 100,000 people in Iraq
Vienna, Aug 22 (IANS/WAM) The Austrian government has approved one million euros ($1.3 million) in emergency aid from the Foreign Disaster Relief Fund (FDRF) to the UN in northern Iraq, the country's foreign ministry...
Read more on Politics Balla
 
Displaced Iraqis in urgent need of shelters: UNHCR
Geneva, Aug 22 (IANS) The Office of the United Nations High Commissioner for Refugees (UNHCR) Friday said Iraq's displaced people were in urgent need of shelters. Adrian Edwards, UNHCR spokesperson, said a loaded ship...
Read more on Politics Balla
 
Spencer Locke loved natural look on Tarzan set
Spencer Locke loved not having to wear make-up on the set of 'Tarzan'. The 22-year-old actress starred as Jane in the action-adventure-animation remake of the Disney film last year and she's confessed it was a...
Read more on Movie Balla
 
Deepsea Challenge 3D indulges James Cameron's passion for diving
James Cameron's new film 'Deepsea Challenge 3D' focuses on one of his biggest passions: deepsea diving. The new flick, which sees the esteemed movie director appear in front of the camera rather than behind it, captures...
Read more on Movie Balla
 
Islamabad protests our constitutional right: PTI, PAT
Islamabad, Aug 22 (IANS) The anti-government protests in Pakistani capital's Constitution Avenue area are peaceful demonstrations, in accordance with the constitutional rights of citizens, Pakistan's PTI and PAT...
Read more on Politics Balla
 
Soyuz rocket carrying two Galileo satellites lifts off
Brussels, Aug 22 (IANS) A Soyuz rocket carrying two Galileo satellites, the fifth and sixth of Europe's Galileo global satellite navigation system, lifted off from the spaceport in French Guiana Friday, the European...
Read more on Apple Balla
 
32 killed in Iraq violence
Baghdad, Aug 22 (IANS) At least 32 people were killed and 12 others wounded Friday in incidents of violence in Iraq's eastern province of Diyala, police sources said. Five people were killed and 12 others injured, all...
Read more on Politics Balla
 
70 IS militants killed in Syria
Cairo, Aug 22 (IANS/EFE) At least 70 members of the Islamic State (IS) Sunni extremist organisation have been killed in two days of clashes with the Syrian Army over al-Tabaqa military airport, the only bastion still...
Read more on Politics Balla