YouTube rolls out new ad model, asks $62m for exclusive package

YouTube rolls out new ad model, asks $62m for exclusive package

PanARMENIAN.Net - YouTube is rolling out a new advertising model looking for new ways to monetize the vast amounts of content hosted on the video sharing site.

As The Next Web reports citing a post on AdWeek, Google is offering channel sponsorships – consisting of display, overlay and pre-roll ads – giving advertisers looking for targeted marketing 96 original content channels in various categories to reach their preferred viewership.

Last June, Google revealed that 30% of YouTube’s viewers actually do watch the pre-roll ads, but more importantly than that, a study showed that the viewers who do choose to watch the ads are 75% more engaged on average than users who are subjected to standard ads. With these kinds of figures, it’s not surprising to find that YouTube’s asking price is more in-line with TV advertising prices.

According to AdWeek, the new model could bring in anywhere beween $4 to $6 million per year, per sponsorship of a single channel. Its pre-roll rate comes in higher than the industry average, at $20 CPM.

AdAge revealed pricing for entire packages, saying that YouTube is asking as much as $62 million for a one-year exclusive package in the music and pop culture categories. A package of sports channels would set advertisers back $40 million, and an automative package costs $16 million. A package consisting of ‘Moms’ channels costs $10 million.

YouTube is also offering smaller packages in categories including celebrity news, music and film, and geeks and gadgets, which will cost between $10 and $20 million per sponsor, while according to AdAge a single channel sponsorship would cost between $2 and $4 million per year.

YouTube has already signed on some heavy hitters including Unilever, which will be sponsoring the Young Hollywood Network channel for $10 million.

 Top stories
"Under changes in the services operation policy, ChatOn will be closed on Feb 1, 2015," the South Korean tech firm said.
“Our online store in Russia is currently unavailable while we review pricing,” Alan Hely, a spokesman for the company.
“Our long-term goal for speech translation is to translate as many languages as possible on as many platforms as possible,” Pall wrote.
Google’s push to offer products targeted at kids is hence likely to come under close scrutiny by parent groups and regulators.
Partner news