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Cheaper video ads?

Top Contributor Alumni
# 1
Top Contributor Alumni

 If you currently run video ads for clients I am curious to know whether you have seen a drop in costs in the last week or so. I ask  because the Wall Street Journal created a sort of fire storm with the story they did on ads appearing on videos of questionable content .  As a result of this story a large number of big corporate advertisers have pulled their ads from YouTube.  Since these cents per view that you pay for some ads on YouTube and is based on the most money that your competitor is willing to pay for the ad space, it stands to reason that after the big advertisers pull their ads the costs associated with the ad spots with would be reduced significantly.

 

 To test out this theory I created a video last evening and made an ad campaign for it. The ad is just an explainer video with a call to action.  I targeted PewDiePie's YouTube channel as he is at the heart of the whole controversy. 

 

 I bid the ad at a penny per view and ran it as an in stream ad.  I targeted the whole US .  I would normally expect the campaign like this to cost from $.05-$.06 per click.  So far the ad is showing as enable but not approved and I haven't gotten any clicks yet so I made up the bed a bit just to see where it ends up being on average. 

 

 So I will repeat the question. Have any of you seen a difference in ad prices since the big advertisers have pulled their ads?  If not that seems sort of strange since creators are already complaining about how significantly their revenue has dropped off ...

2 Expert replyverified_user

Cheaper video ads?

Top Contributor Alumni
# 2
Top Contributor Alumni

Hi Michael,

 

I just checked my account this morning and there has not been a significant decrease since the big players pulled their YouTube ads. However, I have noticed a lot of them have came back to the platform already.

Mike Blackmore - 1 Click Away From a Conversion

Cheaper video ads?

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆

Hi @MikeJohnston,

 

Using automotive brands as an example: prices have significantly dropped and simply put, this is due to the fact that aren't as many advertisers competing in the auction.

 

Example- Ford, Chevy, Toyota all would normally target "new car" as a keyword or "in market>vehicles" audiences, car topics, trending channels and etc. at high bids in order to win the auction for their ad to win the bid. 

 

Simply put: Since a lot of large advertisers (that normally spend 5k+ daily...) have paused their YouTube ads has resulted in cheaper prices for all.

 

-Julia

 

Cheaper video ads?

Top Contributor
# 4
Top Contributor

I haven't noticed anything specific.  I think it's also going to depend very specifically on the actual vertical of the advertiser.

 

Also, likely these larger advertisers are most likely taking advantage of premium buys/preferred, inventory that isn't readily available to regular advertisers so in some cases, there may be little to no impact.  

 

I'm definitely looking forward to seeing the new protection options we end up with at the end of this fiasco.

 

-Tommy

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
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Cheaper video ads?

Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

I did see a marginal decrease in the CPV here in Malaysia. I believe it depends on the verticals and the depth of CPV competition in the market between large advertisers & small medium enterprises (SMEs). 

 

In much bigger markets such as the UK & the US, I believe the SMEs still make up for the majority of YouTube ad spend, so big players (like Unilever & Pepsi) pulling out might not make much of an impact. Whereas in Malaysia specifically the amount of SME advertisers on YouTube is fairly minimal as the ad spaces are mainly dominated by the large players, so them pulling out significantly reduces competition hence lowers the avg CPV as a result.