With over a billion unique visitors per month, YouTube is by far the largest online video platform, and de facto, must be governed for the advertiser who wants a significant presence in video advertising on the web. Yet its hegemony and market shares are not immune to competition. Far from it.
Structural weaknesses
Although profitable, the net revenue would be relatively disappointing Youtube (just under 2 billion) and weigh only 5% of Google's advertising revenue.
Structural weaknesses
Although profitable, the net revenue would be relatively disappointing Youtube (just under 2 billion) and weigh only 5% of Google's advertising revenue.
If the volume demand for video advertising is growing rapidly, it remains below the supply of materials, which keeps the price of pubs at a level well below that of television (a ratio of 1 to 11 in average )
The platform also fails to convince the more qualitative advertisers to associate their brand to a huge catalog but mostly composed of heterogeneous content and varying quality.
A trade policy (too) aggressive
As a result of these difficulties focus on products "bankable" like music. Left to go too far in the commodification and offending users and producers of content.
In early June, Youtube force imposed its conditions and its music streaming service to labels. Now the music videos will be systematically preceded by advertising whose income return primarily to Youtube. For the user, the only way to avoid this is to take out a paid subscription.
The labels that do not want to accept these conditions are simply banned from the platform ...
There is a safe bet that this strategy beyond relatively quickly on other types of content such as video games or web series. This will enhance the attractiveness of the platforms at different economic model or less aggressive with the risk of migration of audiences and transfer of advertisers' budgets.
Increasingly serious competitors
The video advertising market attracts large predators. It is already possible to watch a video on Facebook and in recent months, also within tweets. But Facebook and Twitter are currently views generators for videos hosted on Youtube. For a native video on Facebook, there are 8 links referring to Youtube ... and therefore in favor of its advertising.
Both social networks so must position also as hosts. For that, Twitter can highlight its perfect complementarity with social TV. As for Facebook, it has all the data to make personalized content recommendations.
Amazon also is preparing to rub Youtube. The goal here is not to compete with the UGC video broadcasting busniess ... But rather profitable database e-commerce giant customers through advertising revenue associated with the original videos produced by him or exclusively for its platform.
Unlike Youtube which ultimately does not know much about YouTubers, Amazon can rely on a thorough understanding of its customers through their shopping cart. Based on this analysis, the firm of Jeff Bezos is able to "profile" precisely its audience and offer contextualized and finely targeted ads.
Amazon has already managed to convince large advertisers despite an original series offer still quite limited.
Target Youtube A credibility problem
The recent study by Digitude RMB 2013-2014 demonstrated that context plays a key role on the impact of advertising pre-roll. An exchange of value occurs between the site and the brand. Pre-roll absorbs the qualities of its environment, particularly in terms of image and credibility. But Youtube is perceived as a "fun" environment, already largely saturated with various advertisements and, in addition, frequented mainly by 18-34 year olds who are "naturally" more resistant or impervious to advertising stimuli. For an advertiser, YouTube may offer guaranteed high exposure but not necessarily a good ROI.
Conclusion
Who grasp all, lose, you might say. Stirring wide and hosting almost all types of content, YouTube has managed to occupy the land and closing the market to other general platforms. But at the same time, the giant was diluted its audience and has lost some of its credibility, leaving a space of existence specialized platforms that can promote specific content, a more qualitative positioning or a finer understanding of their audiences .
For YouTube, the threat comes from advertisers who are looking for more targeted and qualitative campaigns. But the danger also comes from producers who are more likely to want to master the marketing of their content by developing their own advertising platforms and regulated.
The platform also fails to convince the more qualitative advertisers to associate their brand to a huge catalog but mostly composed of heterogeneous content and varying quality.
A trade policy (too) aggressive
As a result of these difficulties focus on products "bankable" like music. Left to go too far in the commodification and offending users and producers of content.
In early June, Youtube force imposed its conditions and its music streaming service to labels. Now the music videos will be systematically preceded by advertising whose income return primarily to Youtube. For the user, the only way to avoid this is to take out a paid subscription.
The labels that do not want to accept these conditions are simply banned from the platform ...
There is a safe bet that this strategy beyond relatively quickly on other types of content such as video games or web series. This will enhance the attractiveness of the platforms at different economic model or less aggressive with the risk of migration of audiences and transfer of advertisers' budgets.
Increasingly serious competitors
The video advertising market attracts large predators. It is already possible to watch a video on Facebook and in recent months, also within tweets. But Facebook and Twitter are currently views generators for videos hosted on Youtube. For a native video on Facebook, there are 8 links referring to Youtube ... and therefore in favor of its advertising.
Both social networks so must position also as hosts. For that, Twitter can highlight its perfect complementarity with social TV. As for Facebook, it has all the data to make personalized content recommendations.
Amazon also is preparing to rub Youtube. The goal here is not to compete with the UGC video broadcasting busniess ... But rather profitable database e-commerce giant customers through advertising revenue associated with the original videos produced by him or exclusively for its platform.
Unlike Youtube which ultimately does not know much about YouTubers, Amazon can rely on a thorough understanding of its customers through their shopping cart. Based on this analysis, the firm of Jeff Bezos is able to "profile" precisely its audience and offer contextualized and finely targeted ads.
Amazon has already managed to convince large advertisers despite an original series offer still quite limited.
Target Youtube A credibility problem
The recent study by Digitude RMB 2013-2014 demonstrated that context plays a key role on the impact of advertising pre-roll. An exchange of value occurs between the site and the brand. Pre-roll absorbs the qualities of its environment, particularly in terms of image and credibility. But Youtube is perceived as a "fun" environment, already largely saturated with various advertisements and, in addition, frequented mainly by 18-34 year olds who are "naturally" more resistant or impervious to advertising stimuli. For an advertiser, YouTube may offer guaranteed high exposure but not necessarily a good ROI.
Conclusion
Who grasp all, lose, you might say. Stirring wide and hosting almost all types of content, YouTube has managed to occupy the land and closing the market to other general platforms. But at the same time, the giant was diluted its audience and has lost some of its credibility, leaving a space of existence specialized platforms that can promote specific content, a more qualitative positioning or a finer understanding of their audiences .
For YouTube, the threat comes from advertisers who are looking for more targeted and qualitative campaigns. But the danger also comes from producers who are more likely to want to master the marketing of their content by developing their own advertising platforms and regulated.
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