The Video Advertising Arms Race: Facebook vs. YouTube

You’ve seen it all over the headlines: Facebook video views are catching up to YouTube. In the last year alone, Facebook had 1.4 billion monthly active users compared to YouTube’s 1.3 billion. Although the difference is minor, the recent growth rate for Facebook video has risen dramatically; the reach Facebook has seen in native video views within the year is astounding. Facebook’s video platform launched just over a year ago, whereas YouTube launched a decade ago. Ampere found that 15% of Internet users across North America and Western Europe had watched a video on Facebook in the last month, and a sixth of those people had not watched a video on YouTube in that same time span. It seems the king of online video has finally met its match. YouTube is no longer the only major video platform.

It’s predicted that by the end of 2015, Facebook will have 2 trillion video views. That’s two-thirds as many as YouTube. And what’s more, Ampere determined that Facebook is more profitable than YouTube. Marketing Land wrote the following:

“Facebook’s challenge to YouTube is showing strength. Based on similar totals of monthly active users on the two networks, Ampere found that advertisers value Facebook inventory at a higher rate, $0.73 per MAU for Facebook vs. $0.28 for YouTube. That’s despite the fact that Facebook charges advertisers for views as short as three seconds in its autoplay environment while YouTube only charges when people view a view for about 30 seconds.”

Why is Facebook the preferred video advertising method? Even though Facebook charges advertisers after such a short view time, Facebook is ideal for content marketers before the launch of a product for creating brand awareness. That’s because Facebook videos are getting more likes and shares on the social network site compared to YouTube videos. Nonetheless, YouTube is still more advertiser friendly since the ads can be shown anytime during a video view. YouTube also has the feature TrueView, which allows users to skip an ad after only five seconds. It’s shown to be extremely effective, as advertisers don’t pay for a video if it’s skipped.

Even though Facebook lacks in some areas of video advertising, the company is looking ahead to the next market trend: mobile advertising. The Cisco index predicated that nearly three-fourths of the world’s mobile data traffic will be video by 2019. Mobile advertising is an enormous market that many advertisers have yet to tap in to. Facebook debuted its vision for mobile ads at Cannes Lions on Tuesday, June 23. It’s an intriguing idea and one that is a smart move for the company. Re/code wrote the following about Facebook’s mobile potential:

“Facebook’s future is mobile — it already has more than half a billion people whose only interaction with Facebook each month comes from a mobile device — and it’s giving marketers a hand in designing the very ad units the company will be selling them in a few months. Not a bad move… Of course, Facebook will also be tasked with walking the line between advertiser wants and user happiness. Users are rarely fond of advertising — although with Facebook the issue tends to be targeting more than anything — and it’ll be up to Facebook to ensure whatever ads they create strike the right balance.”

Despite Facebook’s video success, the company still has a long way to go when it comes to video advertising. Facebook does not offer pre-roll ads. Pre-roll ads are the commercials that appear prior to an online video.  If Facebook wants to remain competitive with YouTube the company will eventually have to incorporate these ads, which would allow for a more advertiser friendly format.

So just how fast has Facebook video grown within the past year? Business Insider UK compiled data about the state of social video from Socialbakers and found that brands have virtually stopped posting YouTube videos on Facebook. Beforehand Facebook native video launched just over a year ago, brands did publish their YouTube videos on Facebook. Last year, YouTube was the dominant video platform on Facebook. As you can see, that’s no longer the case.

While YouTube may not be the king it once was, it’s still the leading platform for online video. Although a Google exec said YouTube isn’t worried about Facebook’s native video expansion, the company must realize the threat Facebook poses. Still, YouTube is the second largest search engine thanks to Google, a feat not to be dismissed. But while YouTube is still in a strong position overall, Facebook and other video platforms are giving YouTube a run for its money. So what is the future of video advertising? Only time will tell.

Whether you choose to advertise on Facebook or YouTube, Viddyad is here to help. Create a video ad online in minutes. #EasyFastAffordable

Online Ad Skipping: The Surprising Benefits of TrueView

Google Analytics

How is it advertisers can profit without viewers watching the entirety of their ads? That’s the brilliance of TrueView advertising.

TrueView allows YouTube users the option of skipping the advertisement after a mere 5 seconds. Although it seems counterproductive, a recent STRATA consumer report shows that 75% of respondents need only 3 seconds to identify the brand or product of an online video ad, while the other 25% need only one to two seconds.

With that being said, the first five seconds are crucial. It’s important to get right to the point – don’t waste time showing your branding. Instead, experiment with what drives viewers’ curiosity to continue watching the ad.

Benefits of TrueView

Why pay for an ad if no one watches it? The STRATA report also found that 41% of viewers hit “skip this ad” before they recognize the brand or product being sold. With TrueView, advertisers do not pay for an ad unless the viewer watches it, so there’s no need to spend money on an audience that’s not interested.

Since the percentage of ad-recalls for online video ads is much higher than TV (about 34%), advertisers learn which strategies work and which do not. Using YouTube Analytics, advertisers gain insight and track user engagement in order to make the appropriate adjustments. And for those that did view the video, YouTube says that “You can easily build a cookie list of people who viewed your video and use remarketing to show ads to these customers, wherever they are on YouTube or the Google Display Network.”

Online video ads can build a following. This means that once a user watches the video, he or she may continue to view another ad, subscribe to the channel, or share the video with a friend. YouTube uses these Earned actions to provide data about the relationships between its viewers and the advertisers, allowing the latter to develop and expand their ad campaign.

Feeling inspired? Create your own video ad in minutes with Viddyad.

Viddyad

concert-event-festival-1694

YouTube Make Video Autoplay Default

YouTube make autoplay default - Viddyad blog

As is often the case with a new feature being introduced, it is met with uncertainty. With YouTube’s default autoplay, however, users have come around to it and realized its benefits pretty quickly. The user has the option to disable the autoplay function simply by un-selecting the option from the sidebar, but when autoplay is embedded, one of the ‘suggested videos’ will play next.

There are definite upsides to the new feature. Google will save your viewing history and will provide your suggested videos accordingly. Before the autoplay feature automatically plays the next suggested video, there will be a 10 second countdown, in which you can pause the video if you wish to leave a comment or you can begin typing in the search bar which will cause the countdown to pause.

The feature will lead to users staying on the site for longer, with videos continuously playing that are tailored to your taste. This is a benefit to YouTube as well, and puts them back in the game with Facebook who already have default autoplay and Twitter who have begun testing it.

These efforts towards audience retention for videos and video ads is good news for marketers as now there is a growing number of channels that videos can be advertised on.

AFD3CB0246

YouTube’s Brand-Sponsored Video Rules Hit New Levels

touchscreen interface

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.

tumblr_mt2ahoi1bt1sdyj9lo1_1280

Vimeo VS YouTube

Very often we’re asked what the best place is to host a video ad – Vimeo or YouTube? Which one is better for marketing? Which is more professional? While YouTube is the world’s second largest search engine, Vimeo is focused on smaller audiences , the creative aspect of video creation and hosting, plus some users prefer their clean design to YouTube.

Below, we’ve done a comparison on each of the most important factors you should consider when uploading your video to both sites.

Users – Winner: YouTube 

With YouTube being the world’s second largest search engine, it has significantly more users than Vimeo and thus, YouTube has more reach. YouTube has 800 million unique visitors while Vimeo has around 70 million. A YouTube video will typically rank above Vimeo because YouTube is owned by Google.

Appearance – Winner: Vimeo

Vimeo allows more customization than YouTube. Some thumbnails from your YouTube video may not reflect the best content on your video, but Vimeo allows you to choose a thumbnail so your video has the best possible appearance before it’s played.

Search – Winner: Vimeo 

Below are the search algorithms for each site. Vimeo wins hands down.

YouTube
  1. Relevance
  2. Upload date
  3. View count
  4. Rating
Vimeo
  1. Most relevant
  2. Newest
  3. Oldest
  4. Most played
  5. Most commented
  6. Most liked
  7. Alphabetical

Channels/Collections/Playlists  Draw 

Both sites allow users to curate video playlists. On YouTube you can curate playlists, with Vimeo, it’s slightly more advanced. Your collections consist of Channels, Groups and Albums. You can also customize each channel’s appearance on Vimeo – handy!

Advertising – Winner: YouTube

It’s possible to advertise on both sites, but again, YouTube will have to be the winner here as they have more reach with their advertising options.

Quality Draw

Vimeo was the original HD video hosting site. Now that YouTube has enabled HD and offered users a choice (handy for mobile users), it’s pretty much equal to Vimeo in quality.

So while it’s clear that there’s no overall winner here, you may still find that one of them will suit your output, your budget, or your campaigns better than the other based on the facts above. Why not spend some time with both services to see how they fit your needs? Of course, if you need a video, you can head on over to viddyad.com to get creating ;)

Videos are Everywhere