10 historical moments in Youtube Advertising

After my post a year ago on 12 historical Social Media Marketing moments, I thought I would follow it up with historical moments of Youtube.

1. LonelyGirl15 and Heshey’s (June 2006)

In the Lonelygirl15 episode "Truckstop Reunion" the first branded integration on Youtube happened, it featured the characters eating and displaying Hershey's Icebreaker's Sours Gum.

2. Introduce Brand Channels (August 2006)
Companies were given the opportunity to create their own programming. One of the most renowned branded Youtube accounts BlendTec is actually not a branded channel, proving that a sponsored channel is not always needed. Blendtec was set up as just a normal account. Recently Ford Fiesta and Blendtec teamed up to create the monster which is an ad within an ad.

3. Youtube acquired by Google (October 2006)
Google Inc. announces that it had acquired YouTube for US$1.65 billion in Google stock. Advertisers get excited that Google will be able to put a good advertising back end into Youtube.

4. Dove Evolution Video launched (October 2006)

5. Youtube creates the Partners Program (May 2007)
Youtube starts paying their best content creators. A number of top 100 most subscribed now get paid a percentage of the earnings of money made from advertising sold next to their content.

This week they have come out and announced special Partnerships for content creators that go viral, so the JK wedding dance video would now theoretically make money for the newly married.

6. Burger King sponsor the Youtube only ‘Seth MacFarlane's Cavalcade of Cartoon Comedy’ (August 2008)
It becomes the third most successful b randed channel on Youtube

7. Fred cracks a million subscribers (April 2009)
"Fred" has been sponsored since its inception by the Zipit Wireless Messenger (Z2). He has generated in excess of $100,000 from ad revenue and sponsorship.

8. Youtube puts a halt to third party ads (May 2009)
YouTube put a halt to brand placement advertising in YouTube videos, as they were advertisements that didn’t bring YouTube any revenue. Any partner who was found to do brand placement would lose their contract. This puts an end to Vloggers dealing directly with brands. Example of Vlogger direct deal - starring Lisa Nova

9. Ugly Carl Jnr Burger Deal (June 2009)
Google brokered a deal with Carls Jnr Burger where they would get more than 10 of the top 50 subscribed vloggers to create videos about how they eat their burger. It was a cluttered mess, which made most people resent the stars and Carls Jnr.

10. Still waiting…
I’ve been waiting three years for a proper advertising model which doesn’t require a minimum media spend of $20,000! Take a note from Facebook’s Advertising Model. Get your shit together.

Is there any moments I have missed?


Anonymous said...

Jules, a note on #10. Facebook's model may make sense, but it doesn't change the fact nobody is clicking on their ads. Their data monitoring may be worth blowing $10,000 on to get to eavesdrop on the conversations you're after, but unless it's on a wall post, people aren't clicking.

I have a hard time seeing how Facebook will continue to provide the fan pages for free when that is clearly where the value is. AdAge is reporting over a 6% click-through on wall posts - what we need is not better models, it's better advertising.

Julian Cole said...

Completely disagree. No one clickling on their ads?!?! According to who? I have got some pretty good first hand data to suggest the opposite. Have a look at the last post for evidence.

I think they have a great business model in place. The only correct thing that you said in this post was that Pages are where the value is and guess what they are extracting the $$$ from these through creating effective advertising models for these ads.

Anonymous said...

I saw the last post (and commented =]). What I said there was you were leveraging a ready-made brand and exposing an opportunity to interact with them, which is great. What I would like to see is the interaction with the run of the mill every day items, the ads for the products and services that haven't headlined a music festival.

(Basically I'm arguing a popular rock band doesn't prove the rule, rather than its the exception.)

Facebook are said to be on track for ~US$230 million from self-service ads, representing anywhere from 50 - 75% of projected revenue depending on who you listen to, so the model is clearly working for them.

What I remain unconvinced on the effectiveness of the platform for the small, local businesses that are driving a significant portion of that revenue. Yes the eyeballs are there, I don't believe that automatically transfers into engagement.

Please note, I am more than happy to be completely wrong on this, but I think it's too early in the platform's life to talk definitively of its success or failure.

Julian Cole said...

I think you are forgetting a fundamental process of Facebook Advertising, you control the budget allocation. You can choose between cost per thousand and cost per click, you are only paying for people who click on your advertisement. You are also deciding how much you would like to pay for these ads (.2c to $1 per click). This is what is so good about the Facebook Model, if a small brand wants to only spend $10 a day on Facebook they can and they will only pay for people clicking on their ad.

With the recent upgrades, this only happened in July in Australia, they are also showing the ‘action’ rate which is how many people become a fan because of the advertising. We also ran ads for Football Superstar, which is a show on Fox8 and had similar results. I agree that brands/bands that are in the entertainment space are going to be better off at finding their audience but a majority of brands will have success with this model.

Youtube need to implement a model similar to this in my opinion.

Anonymous said...

Geez Julez - get with it.

Re: pt10 - $20,000 - Not true as you don't have to advertise on YouTube to advertise on YouTube. Just buy through the Google content network (you could spend as little as $100 - the same as a search campaign) and do advanced placement targeting to Youtube.com on top of keyword targeting.


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