YouTube has spent the past year preparing for an assault on traditional television, and now it is ready to pounce. Heading into the spring upfront season, when media buyers commit to spending money on various TV networks, YouTube has begun openly petitioning marketing executives to ditch TV and spend their money online.
Google brought out all the stops at its BrandCast presentation for advertisers Wednesday at the Theater at Madison Square Garden. There were giant video displays and award show-caliber performances from the likes of Pharrell and Janelle Monáe, all in the name of promoting Google's YouTube platform as a place brands should advertise instead of television or rival online video sites.
Of the many companies trying to convince marketing executives to spend their money on the internet instead of on television, none is more invested than Google. The company currently controls a whopping 40% of the U.S. digital advertising market, and it has spent the past year going to great lengths to show media buyers that its YouTube platform is a superior marketing vehicle than cable. INSERT GOOGLE REVS HERE.
Last month, Publicis Groupe digital agencies Razorfish and DigitasLBI agreed to purchase $100 million worth of advertising inventory from Google, a bundle that will include space on YouTube, Hangouts, and Google's mobile and banner ad networks.
Last week, we told you about Publicis Groupe's big deal to purchase tens of millions of dollars in YouTube advertising and how the move was a harbinger of how the online video platform might steal bigger slices of television's advertising revenues in the future.
Television still accounts for the majority of global ad spending, but there is evidence that these dollars are shifting to the Internet. Television’s 57.6% share of ad spend dwarfed the Internet's, which was just 4.5%, according to Nielsen’s Global Adview Pulse. The richness of television as an advertising platform has made the medium the perennial leader in terms of ad spend.
In news that should send a shiver down the spines of television executives everywhere, advertising holding company gargantuan Publicis Groupe has reached a deal with Google to purchase tens of millions of dollars in YouTube advertising over the next year.
Fullscreen CEO George Strompolos knows more about YouTube than most of the people that work there. As an early architect of the gargantuan video site's partner program, he brought many of the largest and most popular networks onto YouTube, from Smosh to Machinima.