Google has found great success in its performance ads, which are powered through its leading search engine, but now the company sees room for growth in brand advertising. Google will seek out YouTube’s video business and other avenues like the Android mobile system and the social network Google Plus.
“The opportunity for brand advertisers and Google to work together is enormous,” said Lucas Watson, head of sales and marketing at YouTube. “We have massive growth in front of us. Google has always wanted to participate in things that can be big and meaningful.”
As more people use the internet for video and movies instead of the television, Google is prepared to shift money away from TV and into video site ads. “Advertisers now think that short form video is a relevant home for brand advertising and YouTube is responding,” said chief digital officer at GroupM Global, Rob Norman. “YouTube will be more like a cable TV line-up rather than this morass that sometimes people see as YouTube now.”
The rise of YouTube’s success has also come from the increase in video quality, as content veers away from strictly user-made videos. Movie studios like Sony are taking advantage of the site and attracting other companies to what YouTube has to offer. “This is content with relatively high production values – one or two steps above user generated content and a step below broadcast. There’s tremendous depth here that is tremendously monetizable and a friendly environment for brands,” said David Cohen, chief investment officer at Universal McCann.
