YOUTUBE'S MOST RECENT UPDATE
YouTube is the universal lifeline to the hearts of many millennials, whether it’s for watching and sharing Parks and Rec clips, learning how to make a meal because “adulting is hard” or sharing the latest viral video of a Philadelphia Eagles fan getting tackled by a cement pillar. With YouTube’s hundreds of uses, 1.3 billion users and 7 billion videos and counting, it’s easy to see why it’s the second most visited site and the king of online video viewing.
Since 2007, users on YouTube have been able to monetize videos, which works by way of Google AdSense, allowing the uploader of the video to share the revenue produced by advertising on the site. This is where advertisers come into the mix by developing campaigns around running video ads that will eventually attempt to reach their desired audience and increase their return on investment.
Recently, YouTube took measures to enforce brand safety after seeing advertisers pull out of the YouTube space due to ads being placed alongside some unsavory videos, implementing a 10,000 lifetime view count restriction for each channel to be eligible for the partner monetization program. This along with additional advertiser controls within AdWords has provided assurance to advertisers and their brands.
However, this past week, Google announced they are revising this restriction now to channels with at least 1,000 subscribers and 4,000 hours of watch time within the past 12 months. This also comes to a surprise to YouTube users that had previously met the 10,000 lifetime view count as they will not be grandfathered into the new rules. This change will be enforced starting February 20, 2018 and will affect all YouTube advertisers and content creators.
What does this mean for advertisers and content creators?
For small YouTube content creators, this is a slap in the face to them as they most likely won’t be eligible for revenue sharing anymore and may make it even more difficult to have their videos seen in the watch space of YouTube. For advertisers and brands, this is definitely a step in the right direction for tightening and enforcing the integrity of the YouTube brand and platform. For a site that has 30 million visitors everyday, 300 hours of content uploaded every minute, and 5 billion daily views, responsibility and monitoring of videos is paramount for the second largest search engine on the web.
While it’s not clear how this new update of the restriction will impact advertising inventory, common sense says that if you narrow a doorway, it will be a lot harder for objects to get through. This same rule applies to the YouTube placement pool. Iif it becomes narrower and competition for placements increases, we could see this impacted in metrics if we need to increase bids for each placement. Cost per views could potentially increase and view rates could potentially decrease for some. Keep an eye on your YouTube campaigns after February 20th for any noticeable trends.