YouTube is prohibiting the use of brand features by its video creators unless the sponsor is willing to sign up for an advertising package with Google.
The video site has a number of video creators who work directly with brands. Now, however, the company has decided to alter its ad policies in order to tighten its rules on this type of brand-sponsored videos.
With these new policy changes, video creators will no longer be able to have overlays of sponsor logos and branded products without the sponsor paying Google to advertise there. Google wants these brands to depend on Google instead of using independent video creators.
There is of course not a lot of enthusiasm from video creators about these changes. While YouTube are describing this change as an amendment of existing policy, others are saying that it is a clear change which affects the way popular YouTubers and larger channels have been using the network. No longer can they boost their rating by featuring popular brands without having to share some of their profits with Google.
In similar policy changes, YouTube has introduced “product card” that allows brands to insert a six second advertisement or endorsement that will appear before their own video. Video creators can avail of this new feature as part of standard media packages.
Ordinarily, YouTube video creators generate revenue by working with external brands to feature their products in their videos. YouTube’s new policies do not allow this type of brand integration anymore unless the producer purchases a media package, giving a portion of their revenue to Google.
With publishers being left with little option other than to invest in media packages in order to feature sponsored video content, YouTube will receive a large proportion, 45% in most cases, of revenue.