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The YouTube and Influencer Marketing Blog

The latest news and analysis of YouTube and Influencer Marketing For Top Brands,

YouTubers, Instagrammers, Social Media Influencers, & Influencer Marketing Campaigns

Native Advertising: The Downfall of Display Ads

Native Advertising Display Ads Sponsored Content

Native Advertising Solves Display Ad Problems

Ad Age published a post stating that close to 50% of online ads aren't ever seen. The post was vague about precisly which ads it was referring to (display, instream, search, etc.), but we can make some guesses at what's going on here, what's not working, and why native advertising is taking over:

  1. Display ads are commoditized, cheap and easy. No one's really checked if they work -- if display ads are amounting to real, branded engagement, awareness, and bottom-line boosting conversions. Everyone stares at their click through rate (CTR) and prays it's at least above average. When it is, the customer is happy but this prompts more ads.
  2. Most advertisers don't really know what they're doing. Many brands put out a massive amount of re-targeting ads at a PPC price, proceed to let them run amok on low quality sites, and at below-the-fold placements.
  3. Visitors have trained themselves to ignore display ads. We consume so much online content these days that everyone is trained to look in the usual places for the content and avoid the places where display ads lie (side rail).
  4. Visitors have trained themselves to multi-task. It used to be that an instream ad guaranteed a view. Now, a visitor can open a new tab or window, write an email, text a friend, and check back in 30 seconds later to watch their original video.

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in blog, Native Advertising With Influencers

Jason Calacanis Rants On YouTube Partner Pay, MCNs

Jason Calacanis How YouTubers Make Money MCNs Partnery Pay

YouTube Partner Pay: Will You Make Money? 

Jason Calacanis wrote a great article about YouTube Partner pay, producing online video content as a YouTube Partner, and  MCNs (multi-channel networks) as a threat to YouTube's current model. He points out the current, fundamental problem with YouTube: making money as a YouTube partner.

There are currently three ways to make money as a YouTube partner:

  1. YouTube Grant Program - as part of YouTube's grant program, the creator is paid directly by YouTube to produce content.
  2. Adsense Payout - payout is based on a revenue share. For most YouTube partners, the payout works out to be around $1.50 CPM (not the best Cost Per Impression in the world of online video).
  3. Advertisers - custom, branded content sold directly to advertisers and published on your channel.

As a participant in YouTube's grant program, Calacanis realized that YouTube will not pay him indefinitely to produce content. By analyzing his video views and search traffic, Calacanis came to the realization that his video content won't pay out enough (via Adsense) to support production if YouTube isn't paying. Many YouTube partners who were paid by YouTube to produce content have also come to the same realization.

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in blog, Monetization, Online Video Marketing, YouTube Influencers

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