GM Thought of the Week: YouTube are finding more ways to monetize content…

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GM Thought of the Week: YouTube are finding more ways to monetize content…

Across the past week, YouTube announced via video how they are expanding the advertising opportunities included as part of their non-skippable ads. In the not too distant future, all creators who can already monetize content on YouTube will be able to turn on non-skippable ads across all of their videos.

 

The key benefit to this being…money. As reported by Mashable and as some may know, advertisers will pay creators a premium for non-skippable ads so this new offering will allow content providers the ability to earn more.

 

Aside from the fact that it keeps creators happy there is no doubt further motive behind the announcement because surely YouTube know that it may annoy viewers if they cannot skip after the standard 5” seconds. However, one way to avoid this is the fact that YouTube have limited each of the non-skippable ads to 20 seconds (from January onwards) so they do not ruin the viewing experience…too much.

 

With the continuous fragmentation of the market, and news of future launches such as NewTV (the potential Netflix contender for short form content) there is the potential that YouTube have made the announcement to give content producers further reason to stick with the platform vs moving to future competitors of the channel.

 

As reported by The Verve, YouTube will also be adding a tool that allows creators to track audience engagement and revenue flow from videos that include non-skippable ads. This will no doubt increase the use of the buying route as a potential return on investment measurement mechanic.

 

So, whilst it all sounds great for those creators, will all actually switch over? Probably not.

 

Mainly due to the fact that if I, as a subscriber, continue to click on content I want to access immediately and have to continuously sit through 20 second ads before each video that isn’t going to make me seek out their videos in the future.

 

It will be interesting to see if those creators who switch to only non-skippable ads see a hit on their subscriber numbers as a result.

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