YouTube Ads – YouTube is a place where people can show their creativity or learn from others with the help of YouTube videos. Everyone of us have used YouTube in their lives. Do you see some ads? These are the given by big brands ad companies to promote their product and services.
This is known as advertising, which is similar to ads which we see on television and as the television or the channel gets paid by the company, YouTube also gets paid from brand and companies. Suppose a new car is launching from a famous brand say XYZ, ten it will ask YouTube to give the ad of the respective car for some particular time and in return it (XYZ) will pay to the YouTube.
YouTube ads revenues increased 11 percent year over year in 2018. Three brands namely Geico, Samsung and Disney are accounted for 15.5 percent of YouTube ads revenue in 2018. Geico was the top spending brand making up 6% of the total YouTube ad revenue. While Samsung and Disney are making 5.5% and 4% of the total YouTube ad revenue respectively.
The high retention rate of YouTube shows that the company has adequately satisfied the brands’ concern about platform safety. Media and entertainment companies represented more than 30% of YouTube ads revenue in 2018.
“Despite brand safety challenges, YouTube bounced back and saw strong growth year-over-year. It [YouTube] has been transparent, mostly about its mistakes and has delivered remedies to buyers,” said MediaRadar CEO and co-founder Todd Krizelman, “Few advertisers have stopped buying on the platform and ad revenue is up.”
In spite of so much revenue jump, the spending of automotive companies had dropped down by 60% less in 2018 as compared to 2017. Automotive sector has dropped from third position to eighth in the category of YouTube Advertisers.