Wednesday, February 8, 2023

YouTube rents masthead ads by the hour to Super Bowl brands


YouTube developed the masthead rental option so brands could get their Super Bowl commercials in front of more people, O’Hara said. For years, YouTube has run Ad Blitz, which viewers visit before and after the game to watch the commercials. People are “galvanized around the ads,” O’Hara said.

Brands and their ad agencies buy on almost all digital and social media channels to amplify their Super Bowl campaigns. YouTube, meanwhile, is growing closer with the NFL, after signing a seven-year deal, starting next season, to stream NFL Sunday Ticket, a subscription service that shows every out-of-market game. That partnership comes with new shows developed by the NFL, and more ad inventory for YouTube to sell.

YouTube has had some growing pains with its ad business. In the fourth quarter, the video site’s ad revenue declined 8% to $7.96 billion. YouTube’s strategy is to stream more premium programming through partnerships like the one with the NFL, and to offer more valuable commercial time.

“For marketers, cultural moments like live sporting events are some of the biggest activation opportunities of the year,” O’Hara said in a blog post that accompanied the announcement of the new masthead ads. “Right now, in the U.S., for example, brands are gearing up for the Super Bowl. But advertising can get crowded during those times, creating a need to go beyond traditional means and explore more creative ad experiences.”

YouTube shared examples of McDonald’s and Xiaomi, which both tested the hourly masthead ads when the product was in beta last year. McDonald’s used the ads for World Cup advertising in Brazil, YouTube said. In that case, McDonald’s ran ads to all the people who visited YouTube an hour before the national team played to “remind them to pick up McDonald’s before the game started,” O’Hara’s blog post said. The campaign “delivered tens of millions of impressions at the very moment fans were preparing for the match.”



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