YOUTUBE PAY STRUCTURES TO REACH MORE?

2210
2015

YouTube Market:
YouTube is the second largest search network in the world and it is known that many users are making the shift from regular search to video formats for reviews, engaging videos and relaxation. With the shift towards domination online, Google has always stayed on top of its industry trying to develop more innovative ways to help businesses. YouTube advertising has in the last few years come up as a large part of advertisers repertoire. In the recent year or so Google has tried to push its YouTube advertising for companies who are looking to pay less money than search per click but pay in a different way. Instead of paying on a CPC basis it is based on View for seeing the video advertisements. With such companies are in theory receiving free clicks to their website, if a call to action is added to the video. The YouTube view pay is one that encourages brand awareness with motion and sounds. What companies must realize is that unlike the other channels of Google advertising none offers a variety of options with motion, sound and for paying view rates.

Advertising Going Far:
When it comes to YouTube advertising there is a rift between those who do not mind watching said ads while others cannot stand it. While there are 2 main types available, skippable and non-skippable, there may be a concern as to how many people are truly tuned into the ads before the videos users want to watch. With the rift between yes and no, we are aware that for Google and their interest they are not willing to scale down YouTube advertising but only build it up further. This is the case as many businesses do see positive returns on such and this helps Google to expand their network even further.

The Dilemma:
While this is not so much of a problem for Google as they know YouTube advertising works and it works well, they are also thinking about the viability of its user base and how it can continue to grow networks without losing valuable users. With this being said Google has thought about creating a tiered pay structure for YouTube in which said users can not pay to have ads removed in an effort to grow the network beyond where it is at. This will create a new market for users who truly cannot stand the pre-roll ads before videos and will make sure that while they may be losing some share in motion advertising, it will not all be lost.

Paid Content:
On top of the above paying for ad removal YouTube is also considering having users pay for content exclusively. This means that various videos will only be available to those who are part of the pay program and are able to see content that will in essence be following streaming services. This means that Google & YouTube more specifically may be looking to break into the streaming content market through a paid tiered model. By this model YouTube will be tapping into a new market and try to partner with stars who have large appeal and reach. By doing so this means that YouTube will invest more deeply into YouTube stars and while this may seem out of the ordinary it is a smart move.

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