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Another Hurdle for YouTube Advertising: Parsing U.S. Audiences


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February 28, 2007

Another Hurdle for YouTube Advertising: Parsing U.S. Audiences

Heather Green

I was chatting with Podtrac CEO Mark McCrery about advertising in this distributed world and he mentioned that another hurdle for YouTube, beyond signing up the major media folks, will be helping U.S. advertisers reach U.S. audiences. That's because such a huge part of the YouTube audience isn't in the U.S.. And the audiences that U.S. advertisers, who spend the lionshare of the online ad dollars currently, want to reach are in the U.S.

I pulled the numbers from comScore and the data matches what he said.

YouTube's U.S. audience hit around 30 million people in January, around 23% of its overall global audience of 133 million. 30 million isn't anything to mock, and it compares with 2.7 million monthly U.S. visitors in January 2006 out of total of 9.6 million. But the work becomes parsing them out so that advertisers can reach them.

02:52 PM

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I agree that it will be hard to get youtube to sign with media folks. I feel its hugely because of so many people posting movies and with international movies being made also the sectionalizing could be different. I am a student at the university of oregon and didn't even realized that 30 million people were reached by youtube.

Hopefully in the future the media can find different tools to aid in making Youtube a tool. Although right now it seems that many people are using youtube for their enjoyment, entertainment, and news.

Posted by: Brittinie at March 1, 2007 02:56 AM

"But the work becomes parsing them out so that advertisers can reach them"

Why would that be so hard? Google has already done this with all their search traffic (serving ads based on geography). So it should be easy to to this for YouTube too.

Posted by: Steve at March 2, 2007 04:39 AM

It's true, you can do that, but then as an ad seller, you're working with an audience that's even more fragmented among content that marketers want to appear next to. I meant that it makes the selling of ads harder.

Posted by: Heather Green at March 2, 2007 10:55 AM

Astoundingly, there are agencies and advertisers beyond the continental United States who want to reach the proportion of their country's citizens who patronise YouTube and other global sites. As Steve observed, Google already has the tools to enable its AdWords operation to manage a wider worldview. Transferring that knowledge to GooTube shouldn't be a dealkiller ...

Posted by: Michael Carney at March 2, 2007 02:19 PM

No offense, but targeting by country is not even remotely difficult. There are numerous services and vendors that can accomplish this (including the Google technology that drives GAW).

"helping U.S. advertisers reach U.S. audiences" is dead easy. I'm kind of wondering if there was even a tiny bit of research that went into this article?

Posted by: RobC at March 3, 2007 09:56 AM

Well it's a good point, but as i said in the earlier comment that's not what I meant to argue and I should have been clearer. The first part of what I was writing was that it turns out that less than a quarter of its audience size is the audience that U.S. advertisers want to reach. And yes, that's who is doing most of the advertising and the audience they want to reach. Your point about geo targeting is, of course, right. But my point is that means you're talking about an even more fragmented audience spread across videos looking at content that advertises are happy to be next to, like folks like lonelygirl, and those that they probably don't want to be, like a high school fight.

Posted by: heather green at March 3, 2007 02:36 PM

Your main point is well taken, Heather, the audience is fragmented, and will must be understood as such.

As you said, 30 million U.S. users is still significant, but there is no "mass" to them. If you take away the undesirable stuff like "fights" and other things like that, it does make you wonder what the audience really is.

In reference to fragmentation, people are still having a hard time understanding that there is no such thing as a mass market anymore; there hasn't been since the introduction of cable television.

It's not surprising at all that the fragmentation is much higher than anyone possibly may have anticipated. Any other social site will encounter the same problem, unless they're serving a tight niche.

Posted by: Gary Bourgeault (thealphamarketer.com) at March 3, 2007 06:56 PM

This website uses video for something different other than just fun and marketing.

What do you think about this?

Atlanta, GA (PRWeb) February 5, 2007 -- Mamtha was an unassuming new bride when she moved to the USA. Although Mamtha A (short for Anantharaman) was marrying a software programmer, she had no aspirations to become an Internet entrepreneur and innovator. Launching an edgy Web 2.0 web application called AtlantaBestBargains.com was the farthest thing from her mind when she first arrived in the United States from India. She would probably have lived the life of a dutiful wife like so many traditional women from her country if the adage "necessity is the mother of invention" didn't still ring so true. The necessity she sees is the need for people in Atlanta to be able to obtain quality services from competent service providers and professionals. Mamtha was frustrated in her search for a reliable contractor to fix her leaky roof. Her calls for quotes often went unanswered, and therefore, she found the process demoralizing.

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Then, it occurred to her that if www.ebay.com can match buyers and sellers together efficiently for items, why couldn't she do the same thing for services in Atlanta? Mamtha and her husband's brain child www.iGanit.com (ganit is an Indian word for "calculate") was born by launching www.AtlantaBestBargains.com as a Web 2.0 marketplace for the city. Web 2.0 is the evolution of the Internet as a platform for software applications beyond the traditional website or blog.

Web 2.0 could be best described as the next generation of websites that are moving beyond static content towards providing rich interactive and social networking features. Myspace.com, YouTube.com, and Digg.com are examples of popular Web 2.0 websites which enable their users to network and share content, music, videos and opinions. The importance of Web 2.0 applications can be illustrated in the buyout of these popular web destinations by major corporations. It is common knowledge that News Corp shelled out 580 million dollars for MySpace.com and Google invested 1.65 billion in acquiring YouTube.com. These sites or web applications have become almost as popular as search engines, the mainstays of Web 1.0. But the ramifications of all of this would have been lost on Mamtha when she first arrived here.

Mrs. A, as she affectionately refers to herself, left the beautiful city of Bangalore with little more than great hopes and expectations about the US as the land of opportunity. Mamtha has very fond memories of her homeland but is happy about her decision to move here. Initially, she was a bit bored with her new life and began looking for work in Atlanta. Eventually, she found employment, but her next challenge was to learn to drive. In India, people, women in particular either find a bus or an auto rickshaw if they want to go somewhere, but here in Atlanta, this is not an option.

Ms. Anantharaman subsequently learned to drive because she needed to drive herself to her work place. It was so liberating, although she does admit that, initially, driving on I-285 was daunting. These are just some of the small victories she had in her new homeland.

Despite the sense of freedom driving gave her, Ms. Anantharaman tired of Atlanta's rueful daily commute. So Mamtha stayed at home and tried to find jobs that she could perform from home to avoid commuting daily. Finding gainful home-based employment is challenging at best. She tried working for companies by coordinating with people from other countries and ended up working early in the morning, late in the night, and in between as well. Above all, she was always exhausted and restless.

Mamtha reflects "the inner joy of doing a job and earning your own money was missing." Mamtha sees AtlantaBestBargains.com as a double win for her to work from home. She feels AtlantaBestBargains.com and iGanit.com will enable her "to do something on her own as an entrepreneur and also make a difference in people's lives." She especially sees it helping small business owners who offer great service at low cost. Ms. Anantharaman opines that "the big companies often win people's business with their huge brand name and then subcontract the work to someone else at a fraction of the price they charge their customers." In contrast, AtlantaBestBargains.com will enable people in the city to buy and sell services safely and securely. Her site features a rating system for service providers so buyers can feel secure knowing they are acquiring services from a reputable company or individual with a track record on their system. These types of rating systems tend to discourage fraud on Web 2.0 services or older sites like eBay.

While AtlantaBestBargains.com will lend itself to the selling of some products like cars, real estate, collectibles, used merchandise, and even employment listings, its primary focus will be on facilitating the service marketplace. Moreover, http://www.iGanit.com and http://www.AtlantaBestBargains.com will be one of the first service marketplaces to allow users to upload video promotions by service professions. It is inevitable that video content would emerge on the web beyond just entertainment and geared towards business promotion, and in this regard, Mamtha Anantharaman is giving Atlanta a vision of Web 2.0 to come.

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Posted by: smartapostle at March 4, 2007 04:33 PM


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