Google Gains $482 millon from Youtube Video Ads in Q1 of 2022
It is not surprising that YouTube has taken a sizable chunk of the advertising pie given the ongoing increase in digital ad spending. $482 million was spent on YouTube video ads in Q1, up 57 percent from $307 million in Q4 2021, according to the ad intelligence platform MediaRadar.
MediaRadar used information from YouTube and established websites to assess a sample of online video advertising. The information was gathered from a panel of more than 2 million American customers and includes pre-roll, mid-roll, and post-roll advertisements. Ad data from social media or streaming video platforms was not included in the study.
The choice to leave such platforms out was made, according to Todd Krizelman, founder and CEO of MediaRadar, to examine how YouTube compares against businesses attempting to sell video outside of the streaming and social media spheres.
He noted that even YouTube by itself seems to outperform MediaRadar’s statistics, saying, “When you include Facebook, Instagram and Twitter in there, it really crowds it out so much and simply looks like a struggle between a few of firms.”
According to Krizelman, the “Other Video” category on MediaRadar includes dot-com websites like Yahoo, CNN, and ESPN. Basically, any website that supports video but isn’t an OTT platform or a social media site.
While spending on YouTube video ads in Q1 climbed sequentially, spending on videos without YouTube decreased by 56 percent during same time, from $142 million to $63 million.
On the other side, overall spending on internet video, including YouTube, increased 31% from quarter to quarter. Spending on online video ads increased from $4.2 billion in Q4 2021 to a total of $5.5 billion in Q1 2022.
Impact of Platform Flexibility on Ad Times
The analysis continued by highlighting how long YouTube video ads are in comparison to those on other video websites. The trend in non-YouTube video platforms is toward shorter commercials. In actuality, 98% of other video advertisements are 30 seconds or less long.
Although YouTube likewise appears to favor shorter-length advertisements, the platform saw 11% of Q1 commercials run between 31 and 60 seconds and 6% of YouTube ads run longer than a minute.
According to Krizelman, YouTube’s technology gives marketers more flexibility, which explains why there is a greater range in ad timings. Other websites might only be able to show advertisements for a maximum of 15 or 30 seconds.
He claimed that YouTube is the technology supplier for its own services and that it controls the platform. “They can allow anything if someone wants to broadcast a two-minute commercial as opposed to a minute [and 17 seconds] commercial.”
The integration of advertisements onto YouTube’s platform is becoming simpler for advertisers. Recent developments in Comcast’s FreeWheel’s collaboration with YouTube include the addition of elements like automated video ad insertion and enhanced consumer workflows between the two platforms.
Pre-roll advertisements, or those that play before the content begins, made up the majority of the ads from other online video platforms that MediaRadar examined during Q1 (97 percent). However, YouTube witnessed a more evenly distributed mix of pre-roll (30%), mid-roll (28%) and post-roll (42%) advertisements.
According to Krizelman, the increased use of mid-roll and post-roll advertisements is a result of YouTube’s more adaptable ad inventory possibilities. Additionally, given that YouTube has a higher frequency of lengthier advertising than other websites, advertisers frequently insert these ads during or just after videos.
Krizelman pointed out that post-roll advertisements only bring in money for marketers if viewers really watch them. Therefore, MediaRadar’s percentage of post-roll advertising does not account for viewers who exited a film before the advertisement began, for instance.
The post-roll won’t be charged back to the consumer in the event that someone starts viewing the movie and then stops, he explained. That never occurs.
Given that other websites may offer the opportunity to embed videos via YouTube, it can be challenging to distinguish between ad revenue from YouTube and other online video platforms. However, according to Krizelman, YouTube would typically not receive any of the revenue.
He added, “We’ll attach it to you, the website owner, even though they’re utilizing a YouTube frame inside the website.
Trending ad Spending
Krizelman predicts that the emergence of short-form content, led by platforms like TikTok, would have an effect on ad duration periods in the future advertising landscape.
“The marketer wants longer advertising because longer ads (if seen) make a stronger effect on people,” he added. “The consumer always prefers short ads.” “One query is if YouTube will be pushed toward shorter commercials. And do they make less money if that occurs?
Krizelman added that he’s witnessed a shift in which more advertising money are being directed toward retail. Amazon reported $31 billion in revenue from its advertising division last year, and other businesses are keen to join the retail fray. Roku, for instance, partnered with Walmart to launch a shoppable ad pilot program last week.