Programmatic advertising continues to be the ‘quiet leader’ in the advertising world. It is used by most companies but it really doesn’t get nearly as much attention as other options out there. Google has just announced, however, that they are seeing a huge increase in the programmatic ad budgets for their top brands on YouTube.
For Q2 2015 the top 100 advertisers spent as much as 60% more on their YouTube advertisements than they did the previous year. This is a big jump as YouTube advertising has already been well established back in 2014 so the increase in investments here is obviously directly related to positive return on investments.
It was also stated that mobile and video ads that were served through the DoubleClick Bid Manager have gone up by more than 3.5 times over the past year.
Ruth Porat, who is the CFO of Google’s new parent company Alphabet said, “YouTube revenue continues to grow at a significant rate with growth driven primarily by video advertising across TrueView and Google Preferred.”
Despite the obvious success of YouTube in its current form, Google has just recently announced the launch of their new YouTube Red service. This is a subscription based service that will allow subscribers to watch videos without any advertisements at all and also allow them to watch videos while they are offline. There is no information yet as to how many people are expected to sign up for this new ad free video experience, but it will likely help to compliment YouTube’s existing strategies.
