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Brand Advertising Social Media Trend: YouTube Needs the Advertisers to Catchup – Don’t Do PreRolls July 10, 2008

Posted by John in social media.
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What’s an example of Social Media? Make something social and sharable. Gatorade has a success on their hands. It’s not to the level of Coke Mentos but it’s close.

There has been talk about the opportunity for brand marketers to connect with users of a new generation. Also, YouTube got slammed by a Wall Street Journal article on their lack of monetization. The problem is that brand marketing will be done differently. Here is the Gatorade commercial on YouTube. It’s not a commercial but a piece of content created for the community. As I have been saying on this blog for a year “Content is the Ad”. Wall Street Journal is missing the point and if YouTube does pre-roll then they will lose users fast.

YouTube should continue to serve users by providing a great user experience and let the advertisers innovate – not the other way around. Hey Chad Hurley: Don’t do prerolls! Let the advertisers innovate on the copy strategies that work for YouTube and don’t change YouTube for what is a behind the times advertising market. This Gatorade ad is a great example. Companies like Intel should do this rather than doing those boring NPR sounding videos. Brand marketing is about respecting the audience and delivering content that they will enjoy and find valuable – not a marketing piece.

What’s interesting is that this Gatorade video has millions of impressions over multiple users reposting it. The penetration is amazing.

The big deal is that this isn’t some boring product specific video talking about Gatorade. It’s a product placement ad that speaks directly to the Gatorade demographic. Was it successful – sure thing. It connected with their audience in a mode that they enjoy. It’s respectful and not a overproduced in your face Gatorade ad – like on ESPN.

Here’s the ad look for the product placement. Gatorade gets the benefit by not mentioning Gatorade. This trend will continue.

Comments»

1. Erik Schwartz - July 10, 2008

That’s great for Gatorade.

How does YouTube make any money in the deal?

2. John Furrier - July 10, 2008

Erik: great question; I’m sure google was getting the same question in 2000… my take is youtube should continue to enable this kind of advertising and innovate the ad side not tamper with the user experinece side. This is equivalent to a organic search result. They can charge by leveraging their analytics and doing placement next to these video to give users a navigation and content benefit.

Good question – that’s the billion dollar questionđŸ™‚

3. Erik Schwartz - July 10, 2008

John: I agree that “recommended videos” is the key to YT’s revenue opportunities.

I’m wondering if they’re already taking GOOG search data into account in recommending videos. For example:

I was recently searching on GOOG for info about the BBC show “Top Gear”. At the top of my recommended videos list today was a clip of Richard Hammond (one of Top gear’s presenters). Now instead of a Richard Hammond clip they could have dropped an Audi R8 video in.

They key then would be mining my search data.


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