Bayan Ishtaiwi, digital media manager at Vizeum, discusses YouTube Premium and what it means for marketeers.
Anyone who utilized YouTube as a media channel will probably know that it can be one of the most impactful channels to boost brand awareness and ad recall; not only that, but also driving conversions if you are leveraging YouTube for action! The platform provides full-fledged solutions to target users, no matter where they are in the marketing funnel.
With that being said, we can see why most brands are present on YouTube: to capture this great opportunity of reaching the right audience and deliver the right message!
But… Would that still be possible with the launch of YouTube Premium?
What is YouTube premium?
YouTube Premium is a service by YouTube that allows users to benefit from diverse features by paying a subscription fee. Those additional features include:
YouTube Premium was launched in MENA (UAE, Saudi Arabia, Bahrain, Kuwait, Oman and Lebanon) in September 2019, bringing the number of markets enjoying the services to over 70.
With YouTube changing to a subscription-based business model and aggressively pushing heaving consumers to convert, lots of users will be enjoying an ad-free experience very soon! So how would this affect advertising on YouTube?
What does it mean for advertisers?
Users will still be using YouTube, but they won’t be targeted with ads! Which means:
While those are all assumptions, let’s have a look at a typical YouTube reach curve for KSA for reach objective and skippable ads format (this is a hypothetical scenario just to explain the logic behind my assumptions):
Looking at a two months duration campaign, you can reach 70% of the Saudi audience (mass targeting) by investing $283,000, while if you want to increase your reach by 5 points, you need to increase your investment by 29%. Is that still worth it for you?
My concern is that, if the heavy YT users are moving to YT Premium, you are already starting your campaign with an audience that is harder to reach and consumes less content which will result in… less efficient reach!
So, what can we do?
This of course doesn’t mean that brands and advertisers will stop using YT. There are so many tactics that can be used to stay efficient and reach your audience:
What else would you do?
Opinions expressed in this piece belong to the author.