Tuesday, October 09, 2012

YouTube Lures Advertisers with Niche Content

In class we discussed how Hulu transformed the online video market by bringing professionally produced content to the web, instead of the skateboarding cat videos on YouTube. Professional content brings professional advertisers, and Google is officially trying to get some of this mojo back, as they've previously invested $100 million on producing exclusive original content. The New York Times is now claiming that YouTube will spend an additional $200 million to market this content on an array of channels that target niche audiences.

Google is partnering with well-known content producers and celebrities for these niche channels, such as ESPN's Grantland, Michael Cera, and Sarah Silverman, as well as web-only personalities that have become famous through YouTube video series. While these producers are excited about this new medium to create content and reach their audiences, advertisers are still skeptical about diverting funds away from longer-form content on TV and Hulu to these mostly shorter web clips. Nevertheless, Google is confident that focusing on niche audiences will eventually draw premium advertisers that want to target very specific demographics.


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