YouTube is the most widely used social media platform in the USA. The daily number of US YouTube users is constantly increasing, so it might remain the most common platform in the USA this year. However, the point to ponder is what media agencies think about YouTube. Do they consider it a social media platform for investment?
A survey was conducted to analyze the importance of YouTube for media agencies. According to the Pixability report, media agencies consider YouTube more like a connected TV than a social media platform. The survey included 196 US-based media agencies directly associated with YouTube or Connected TV for advertising their brands. Three-quarters of the respondents, that is, 74%, agreed that YouTube is an independent video platform where they can invest. Almost half of the respondents, that is, 46%, consider it a Connected TV, while one-third of the respondents, that is, 35%, consider YouTube a social media platform.
The survey also included Big 6 media agencies. They are more likely to consider YouTube as a Connected TV platform. 57% see it as Connected TV, while only 27% see it as a social media platform. So, the results of the report and stats show that Big 6 respondents are less likely to consider YouTube a social media platform than others.
Another data reinforces this respondents’ view as it indicates that YouTube and Netflix combine for half of the total CTV viewing hours, while YouTube alone accounts for one-fifth of the CTV viewing hours in the USA. Another notable revelation is that most Americans consider watching YouTube the same as watching TV. So, they have conveniently replaced their TVs with YouTube to fulfill their needs.
However, it is assumed that media agencies plan to increase their YouTube investments this year. At the end of 2022, almost 55% of respondents agreed that they would increase their spending on YouTube this year. The number is greater than last year’s results when 48% of the respondents said their spending growth would increase in 2022 after the YOY (year-over-year) analysis. While looking back at 2021, 77% of the respondents planned to increase their investment in YouTube after the pauses resulting from the pandemic.
Regarding the execution of advertising campaigns on YouTube, Big 6 agencies claimed that their preferred objectives would include brand safety, ad performance, efficiency, measurement, audience targeting, and brand suitability. On a scale of importance from 0 to 5, brand safety gets 4.84 points, while ad performance and efficiency get 4.7. It is followed by measurement/reporting, which is 4.68 on a scale of 5, while audience targeting and brand suitability are 4.68.
Independent agencies have different preferences for objectives. Measurement/reporting gets a 4.7 on a scale of 5. So, it is the most crucial objective for independent agencies, followed by audience targeting and ad performance, which get 4.68 and 4.58 points, respectively.
According to the survey respondents, if they don’t take measures like inclusions, exclusions, or other methods, 35% of the total number of times a digital advertisement is shown within a campaign would be affected. So, it is not a brand-suitable option for advertisers.
What Will Happen to CTV Investments?
According to a forecast, the ad spending of Connected TV will boost in the coming few years. This research data show the same results. According to it, 76% of the media agencies plan to invest more in Connected TV platforms this year than last year. And there is harmony in results as a considerable chunk of respondents of Big 6 and independent agencies also expect the same. 79% of the Big 6 Media agencies and 74% of the independent agencies plan to increase their CTV Investments.
YouTube is a Connected TV platform in which a significant chunk of Big 6 and independent agencies invest their ad spending. 75% of the Big 6 and 70% of independent agencies invest in YouTube as a Connected TV platform. At the same time, 70% of the respondents of Roku, one of the Big 6 media agencies, and 67% of the respondents of Hulu, one of the independent agencies, also invest in YouTube.
Half of the respondents think that CTV, TV buying, and YouTube will merge shortly. 39% of the respondents already consider them the same platform managed by one team.
Contrary to the optimistic prospect of YouTube and CTV, 45% of the media agencies believe that the budgets of Linear TV will remain the same, while 41% of them think it will decline this year. On the other hand, only 14% of the respondents, that is, 1 in 7, expect an increase in Linear TV’s budget.