YouTube Home Page Ad Costs “$175,000 a day, plus an incremental $50,000 in spending on Google or YouTube”

We recognize Google has to generate ad revenues for YouTube.  But we also believe the public deserves to know about–and understand the implications–of Google’s deals with deep-pocketed advertisers.  These recent excerpts from Advertising Age and Online Media Daily help add to the public record.  First, Ad Age:

…the bigger YouTube grows, the more marketers find they must couple a campaign with spending…Geico, for example, spent a few hundred thousand dollars on YouTube as part of its online-video campaign… Geico took over the YouTube front page for the day April 2, and then bought YouTube search keywords such as “numa numa.” The rate card for a YouTube front-page roadblock is $175,000 a day, plus an incremental $50,000 in spending on Google or YouTube. Of the video’s 1.3 million views, 500,000 were achieved that first day on the YouTube home page. You can’t just throw a video up on YouTube and expect consumers to find it, “because it’s a needle in a haystack,” said Taylor Valentine, director-digital services for Horizon Media, who implemented Geico’s digital-media strategy.

Here’s an excerpt from Online Media Daily, on the impact of so-called “rich media” [multimedia & interactive] YouTube ads:

Sprint is expected to take over Google’s YouTube home page for 24 hours this week in a groundbreaking ad campaign that highlights a human clock. The campaign, which emphasizes Sprint’s “Now Network,” will embed user-generated content in the masthead — a first for masthead ads running on YouTube. Those who want to participate are assigned a number and use a Web camera to shoot the video and add themselves to the clock…YouTube’s standard home page masthead, 960 x 250, which launched in January, sits above the fold on the home page. A tandem unit — 300 x 250 — placed just below on the right can interact with it…

“We needed to figure out a way to embrace rich media on our home page, especially with the growth of impressions and more than 11 million unique users visiting the U.S. home page daily,” said Zal Bilimoria, product manager for the home page at YouTube. “On average, these rich media masthead units have 14% interaction rates, compared to the industry average noted by DoubleClick for similar-size units of just under 5%.”

YouTube has already sold and run mastheads in 12 countries…

sources:  Why Free-Ride YouTube is Finally Winning Ad Dollars.  Michael Learmonth.  Ad Age.  April 13, 2009.
Sprint Takes Over YouTube Home Page With UG Human Clock.  Laurie Sullivan.  Online Media Daily.  May 8, 2009.

Author: jeff

Jeff Chester is executive director of the Center for Digital Democracy. A former journalist and filmmaker, Jeff's book on U.S. electronic media politics, entitled "Digital Destiny: New Media and the Future of Democracy" was published by The New Press in January 2007. He is now working on a new book about interactive advertising and the public interest.

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