YouTube’s “TrueView” video ad revenue ties TV

YouTube reports that TrueView ads now make as much revenue per hour in the US as television/cable ads.

You didn’t think that watching less TV on TV would leave you with less ads, did you?  The average American sees 3,000 ads a day. Just like every other side of a bus or white wall, the web is the new and ultimate blank space for advertising.

But YouTube’s latest announcement provides a further proof-point that the economics of digital television is fundamentally starting to change.  Although typical accessible RPM rates in the $2.00 to $7.00 range still dramatically favor low cost-per-minute user-generated content creators and Maker Studios-style skits and digital talk shows, ad spend allocation to digital video rising much faster than allocation to tradition TV, topping $3 billion globally in 2012 and on pace to reach $5 billion in only a few years.  At a viewer run-rate of 1,000,000 per video, lower budget digital series and webisodes start to look economically-viable, one of the reasons why two critical factors will decide the fate of content creators not subsidized by YouTube: (1) audience-building and (2) network economics.  By identifying and engaging a core audience, then scaling co-marketing/co-branding, cross-promotion and content library building, the next generation of digital TV creator networks will not only survive but thrive even at current YouTube economics, even if that means a whole host of TrueView inventory to click through to get to the content.

Outlined by YouTube’s TrueView page, brands want engaged viewers. They say, “Engage your viewers by giving them choice.”

Ultimately, as the traditional television network model breaks down, digital content is clearly stepping up. According to a 2012 Nielson study, the percent of people worldwide who have watched a video on their computer in the last month (84%) has recently surpassed the percent of people who have watched television in the last month (83%).

In particular, ZoomTilt is really stepping up its content game this Thanksgiving with five fresh-off-the-press premiere digital episodes from our five TV Reset Project finalists, just in time for Cyber Monday.  Make sure you subscribe to our YouTube Channel to catch all the great new entertainment coming to ZoomTilt!


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