Three Takeaways from the YouTube/NFL Streaming Deal

Three Takeaways from the YouTube/NFL Streaming Deal

YouTube

While all eyes were on Amazon’s streaming deal to broadcast NFL Thursday Night Football, YouTube waltzed in and pulled off an upset. YouTube signed a seven-year deal worth an average price of $2 billion a year to secure rights to the NFL Sunday Ticket franchise.

This is a big move for YouTube. Sunday Ticket is a subscription-only package that allows customers access to all Sunday afternoon games for out-of-market teams. DirecTV currently pays the NFL an average fee of $1.5 billion per season for both residential and commercial rights. Its deal expires after the current season.

Sunday games represent peak prime football. NFL Thursday Night Football (TNF), by contrast, typically features subpar games largely because the Thursday timing does not give teams enough time to prepare after their previous Sunday games. Amazon’s ratings for TNF broadcasts have been spotty although four games rank among the Top 100 most viewed telecasts of 2022 according to Nielsen.

YouTube reportedly bested Amazon, Apple, and ESPN to secure the rights. YouTube will offer Sunday Ticket as an add-on to YouTube TV (a subscription streaming service that lets you watch live TV from major broadcast and popular cable networks) and in the video platform’s main app through a service called Primetime Channels that allows viewers to subscribe to individual channels.

Here are some takeaways from the agreement:

  • The deal is another sign that connected TV (CTV) is the future. For the first time, streaming viewership topped cable in 2022, and this trend is not going to reverse course as cord cutting continues. As reported in Axios recently, traditional television companies and major media firms are bracing for further declines in the ad market and yet another increase in cord-cutting this year. “The migration of the country’s biggest sports rights packages from linear TV networks to streaming will expedite the inevitable collapse of the cable bundle,” Axios noted. At True Interactive, we believe it’s important that businesses understand the growth of advertising on streaming platforms in context of the rise of connected TV. If you’ve not done so already, take a closer look at why connected TV is growing and how it could expand your audience. (True Interactive can help you with that.) Connected TV is enjoying 60-percent growth, driven by a public’s appetite for streaming that continues unabated. Connected advertising is similar to linear TV advertising because both formats rely obviously on video. But connected TV is different in many important ways. For one thing, advertisers need to understand how to create video content that will reach viewers across a variety of viewing devices in addition to TV screens, and connected TV ads are competing with multiple content streams. You can watch Amazon’s TNF on a laptop, mobile phone, or gaming console with multiple screens open. The same will hold true for watching NFL Sunday Ticket via YouTube TV. YouTube offers a number of connected TV ad units including its Masthead ad format. YouTube has added more CTV formats recently and will certainly offer more as its competitors such as Amazon do the same.

  • This a victory for first-party data, which is the information that businesses collect directly from their customers. YouTube will use first-party data to sell targeted ads to help drive revenue for the games. Right now, third-party audience data is withering away thanks to Apple’s and Google’s privacy measures. Businesses that figure out how to monetize first-party data enjoy an enormous advantage. YouTube is the second-most popular search platform in the world (behind Google). The company will be well positioned to us first-party data to sell targeted ads to NFL viewers.

The 2023-24 NFL season seems a long way off. YouTube still needs to deliver on investor expectations for parent company Alphabet between now and then. Look for YouTube to expand even more into the lucrative live sports field, which is still up for grabs among streaming platforms. Meanwhile, Alphabet’s next earnings announcement is February 7, 2023. Let’s see how YouTube’s advertising revenue delivers.

Contact True Interactive

True Interactive can help you navigate the connected TV landscape. Our services range from media strategy and planning to automated performance reporting. Learn more about our services here, and contact us to learn more.

Why YouTube Is Turning to Shorts for Social Commerce

Why YouTube Is Turning to Shorts for Social Commerce

YouTube

Short-form video is an important battleground for brands and consumers right now. TikTok really changed the game for video content creation by inspiring millions of people to create TikTok videos that typically last anywhere from 10 seconds to 60 seconds. Since then, a host of imitators have appeared, including Meta’s Reels on Facebook and Instagram; and YouTube Shorts.

Many businesses have quickly cracked the code for creating short-form video, and everyday users continue to up the ante, too, which has accelerated the rise of the creator economy, or everyday creators who monetize their content with the help of the host app.

Short-form video is also rapidly evolving as a format for creating ads, free content, and shoppable experiences. The latest example: YouTube Shorts is expanding shopping features.

What Is YouTube Shorts?

Shorts is a feature available to YouTube users. With Shorts, people can quickly and easily create short videos of up to 15 seconds, similar to how TikTok and Instagram Reels are used. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once a person opens one Short, they get access to tons more of them (again, think TikTok or Reels playing one after another.) According to Google, YouTube Shorts now averages over 30 billion daily views (four times as many as a year ago).

It did not take long for businesses to get involved with Shorts. As we have blogged, brands everywhere are connecting with the vast YouTube audience with organic content and advertising.

For instance, Kitchen and home marketplace Food52 is posting Shorts that offer sneak peeks at its longer-form content on the traditional version of YouTube, as well as repurposing some recipe videos. Drupely’s olive-oil brand Graza says it is creating user engagement by posting how-to cooking and recipe content. According to Graza, videos focused solely on Graza products do better on TikTok than on Shorts.

Social Commerce on Shorts

If YouTube has its way, more brands will be using Shorts to sell things to people. New shopping features are being tested by YouTube in order to accelerate social commerce on YouTube. The new shopping features allow users to purchase products as they scroll through Shorts.

In the United States, eligible creators can tag products from their own stores. Viewers in the United States, India, Brazil, Canada and Australia can see the tags and shop through the Shorts. (The plan is to expand tagging for more creators and countries.)

YouTube is also experimenting with an affiliate program in the United States. This makes it possible for creators to earn commissions through purchases of recommended products in their Shorts and regular videos. YouTube says that this test is in early days. The program will be expanded in 2023.

This is just the latest in many efforts by YouTube to inject social shopping into the user experience. For instance, YouTube launched shoppable ads and the ability to shop directly from livestreams hosted by creators. YouTube has good reason to make it easier to buy and sell products on Shorts. Shorts has topped 1.5 billion monthly users. According to gen.video, YouTube ranks third overall in terms of where consumers do their product research before buying, only behind Amazon and Google directly.

YouTube Shorts is in a race with Instagram and TikTok to win attention from shoppers. Both apps have a head start on Shorts, and TikTok is testing TikTok Shop in the United States. TikTok Shop allows users to buy products directly through the app. All of them are trying to get a slice of the social shopping pie: social commerce is expected to be a $2 trillion market by 2025.

Brands are already figuring out how to sell products via Shorts. Glossier sold products through Shorts in June by creating a challenge for users to try. Glossier gave about a hundred influencers a new pencil eyeliner and encouraged them to create Shorts videos with the hashtag #WrittenInGlossier in the caption. People who tapped the hashtag were brought to the Glossier website. There, they could buy the eyeliner and were asked to recreate a look as part of the challenge. Any Shorts video that included the hashtag was shoppable.

2023 will likely be a year for more shopping features to proliferate on video platforms, with Shorts, TikTok, and Instagram duking it out for consumers’ attention amid a recessionary economy. Who will win? We’ll report progress here.

Contact True Interactive

We deliver results for clients across all ad formats, including video and mobile. To learn how we can help you, contact us.

Why Google Is Bullish about Winning Its Fight with TikTok

How Brands Are Using YouTube Shorts

Why Google Brought Advertising to YouTube Shorts

Why YouTube Shorts Matters to Brands

Why Google Is Bullish About Winning Its Fight with TikTok

Why Google Is Bullish About Winning Its Fight with TikTok

Google YouTube

Alphabet, Google’s parent, announced third-quarter earnings that fell short of expectations. Normally an earnings miss is cause for concern especially during recessionary times. But the company sounded upbeat. In fact, Alphabet believes it’s making the right investments for long-term growth, including one crucial YouTube feature.

The Numbers

First, let’s take a look at the numbers. For the third quarter, Alphabet reported:

  • Revenue: $69.09 billion vs. $70.58 billion expected, according to Refinitiv estimates.
  • Google advertising revenue: $54.48 billion, up 2.5 percent year over year but down 3 percent between the second and third quarters. (By contrast, Google’s ad revenue jumped 43.2 percent between the second and third quarters of 2021.)
  • YouTube advertising revenue: $7.07 billion vs $7.42 billion expected, according to StreetAccount estimates.

The decline in ad revenue for YouTube is most bothersome for Google, especially because YouTube rival TikTok continues to pick up steam. Advertisers are finding something better on TikTok: younger, highly engaged audiences who prefer TikTok’s short-form video content.

According to Statista, TikTok generated $4.0 billion in advertising revenue in 2021, a figure that is expected to double by 2024 and triple by 2026.Digiday reported just a few days ago that ad agencies are shifting content creation from Instagram and YouTube to TikTok. In April, Insider Intelligence predicted that TikTok’s ad revenue will grow 184% to nearly $6 billion in 2023 (that amount tops Twitter and Snap combined). Meanwhile, Insider Intelligence says that Influencer-marketing spend on TikTok will overtake YouTube in 2024.

YouTube Is Fighting Back

But Alphabet CEO Sundar Pichai says he is confident that Google will turn things around. One reason: the company has developed an answer to TikTok.

YouTube recently launched Shorts, which is YouTube’s version of short-form TikTok videos. Shorts is basically a TikTok copycat. Using the YouTube app, people can quickly and easily create short videos of up to 15 seconds. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once you open one short, you essentially access the motherlode in that videos start playing one after the other. Just swipe vertically to get from one to the next.

According to YouTube, more than 1.5 billion people use Shorts – impressive numbers that actually surpass TikTok’s user base. As a result, more brands are creating campaigns on Shorts. It’s early days for Shorts and brands, but Shorts has two big advantages over TikTok:

  • Integration with YouTube, which has 2.6 billion active users. This is important because YouTube can promote Shorts to the built-in user base, and brands can connect Shorts content to their already established YouTube presence.
  • A creator monetization program that is more favorable than TikTok’s. YouTube recently announced Shorts will soon be eligible for monetization, and creators will keep 45 percent of the revenue generated from viewership. Having more savvy and popular creators on Shorts will generate more ad revenue for YouTube – and likely attract more brands.

Shorts is a fledgling operation. It only recently launched an ad program. But in an earnings call with investors, Pichai voiced optimism that the company’s investment into Shorts will pay off. He reiterated YouTube’s commitment to Shorts monetization, challenging TikTok directly, and attracting creators to the platform.

He has one other reason to feel upbeat. TikTok continues to grapple with a recurring and very ugly issue about its possible threat to national security related to accusations of privacy breaches — an issue that flared up in 2020 and is making headlines again. Who knows how that is going to turn out?

The best course of action for YouTube is the one that the company has chosen already: answering TikTok as it has done and capitalizing on its built-in user base. This will take time, and investors are impatient, especially during a down economy. But Alphabet has the cash to ride out the down times and continue to make YouTube more appealing to advertisers and creators.

Contact True Interactive

We deliver results for clients across all ad formats, including video and mobile. To learn how we can help you, contact us.

How Brands Are Using YouTube Shorts

How Brands Are Using YouTube Shorts

YouTube

The rise of TikTok is one of the most phenomenal stories in the digital world. Since launching globally in 2018 through a merger with Musical.ly, TikTok has become a multi-billion-dollar advertising machine. TikTok has more than 1 billion members, has surpassed Snapchat to become the most popular app with teens, and is on course to earn more than $11 billion in ad revenue in 2022.

TikTok has succeeded by becoming the preferred app for short-form videos. Although users can post videos that are as lengthy as 10 minutes, the ideal TikTok video is about 30 seconds long. Some of the most popular TikTok videos of all time, racking up billions of views, are blink-and-you’ll-miss-them short.  As a result of TikTok’s popularity, brands are spending more money advertising on the app, which is a threat to more established apps such as YouTube and Instagram.

Because of TikTok’s popularity, YouTube and Instagram have responded in kind by launching short-form video features. For example, in 2021, YouTube rolled out Shorts globally after a more limited launch in India in 2020. Although YouTube Shorts is not yet a source of meaningful advertising revenue for YouTube, it is gaining traction with brands.

What Is the YouTube Shorts Feature?

Shorts is basically a TikTok copycat. Using the YouTube app, people can quickly and easily create short videos of up to 15 seconds. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once you open one short, you essentially access the motherlode in that videos start playing one after the other. Just swipe vertically to get from one to the next.

Shorts, much like TikTok, provides editing tools you can use to flex creative muscle. Users can string clips together, adjust playback speed, and add music and text. And as YouTube has blogged, creators can play off of existing content: “[Y]ou can give your own creative spin on the content you love to watch on YouTube and help find it a new audience—whether it’s reacting to your favorite jokes, trying your hand at a creator’s latest recipe, or re-enacting comedic skits.” (Notably, creators are in control of their material; they can opt out of having their long-form videos remixed in this way.)

According to YouTube, more than 1.5 billion people use Shorts – impressive numbers that actually surpass TikTok’s user base. It was only a matter of time before YouTube made it possible for brands to get involved creating their own Shorts. And they are.

How Are Brands Using YouTube Shorts?

As reported in The Wall Street Journal, brands are increasingly experimenting with ways to engage with users on Shorts. For example:

  • Kitchen and home marketplace Food52 is posting Shorts that offer sneak peeks at its longer-form content on the traditional version of YouTube, as well as repurposing some recipe videos.
  • Drupely’s olive-oil brand Graza says it is creating user engagement by posting how-to cooking and recipe content. According to Graza, videos focused solely on Graza products do better on TikTok than on Shorts.
  • Glossier sold products through Shorts in June by creating a challenge for users to try. Glossier gave about a hundred influencers a new pencil eyeliner and encouraged them to create Shorts videos with the hashtag #WrittenInGlossier in the caption. People who tapped the hashtag were brought to the Glossier website. There, they could buy the eyeliner and were asked to recreate a look as part of the challenge. Any Shorts video that included the hashtag was shoppable.
  • Danessa Myricks Beauty used a short to promote its launch in Sephora. The Short built excitement for the launch by featuring the sending off a package of its product to be sent to Sephora stores.
  • NBC’s The Voice relied on Shorts to feature hosts for its most recent season. The ad included a banner at the end with clear directions for viewers on when and where to watch the show.

This is all encouraging for Shorts, but the feature is not yet a revenue generator, and YouTube is under pressure to staunch the flow of ad dollars to TikTok. On top of that, Instagram is turning up the heat with its own TikTok challenger, Reels.

Even so, YouTube is striking a note of optimism.

Philipp Schindler, senior vice president and chief business officer at Google, said during second-quarter earnings call in July. “…[E]arly results in Shorts monetization are also encouraging, and we’re excited about the opportunities here.”

It’s early days for Shorts and brands. Meanwhile, Shorts has one big advantage over TikTok: integration with YouTube, which has 2.6 billion active users. This is important because YouTube can promote Shorts to the built-in user base, and brands can connect Shorts content to their already established YouTube presence.

What Brands Should Do

  • Know your audience. YouTube appeals to the 15-25-year-old demographic. It is also very popular among 26-35-year-olds. TikTok skews younger: it is most attractive to 16-24 year-olds.
  • Be ready to capitalize on Shorts ad formats when they become available widely. For instance, brands will be able to connect their product feeds to their campaigns and make video ads on YouTube Shorts more shoppable.
  • Understand how to integrate Shorts ad formats into a broader YouTube advertising strategy that includes skippable video ads, bumper ads, overlay ads, and others.

Contact True Interactive

We deliver results for clients across all ad formats, including video and mobile. To learn how we can help you, contact us.

Why Google Brought Advertising to YouTube Shorts

Why Google Brought Advertising to YouTube Shorts

Google YouTube

During the past several weeks, the marketing world has been buzzing about streaming companies such as Disney+ and Netflix embracing advertising. And this conversation is more than justified. Both businesses offer advertisers a tremendous inventory for creating highly relevant advertising content to a global streaming audience that continues to grow based on industry research. As we mentioned recently in a blog post, although we don’t yet know what kinds of ad units Disney+ and Netflix will offer, they can certainly draw upon plenty of examples. One of them is YouTube.

YouTube Advertising

YouTube has offered ad units for years. And although the growth of YouTube’s ad revenues has not delivered on analysts’ expectations lately, the app remains an important part of Google’s growth. YouTube’s worldwide advertising revenues amounted to $6.9 billion in the first quarter of 2022, representing a 14 percent year-over-year increase. YouTube is certainly threatened by the rise of TikTok, but the app is still a juggernaut, and one of the reasons for that is YouTube’s ability to offer a diversified slate of ad units.

The most casual users of YouTube are familiar with some of YouTube’s popular ad units such as skippable video ads (which allow viewers to skip ads after 5 seconds). Over the years, YouTube has built on this foundation of short-form ad units with new products. For example, in 2019, YouTube unveiled a product called Bumper Machine, which makes it easier for businesses to create six-second video ads, or bumpers.

YouTube has also embraced connected TV with the Masthead ad format for TV. This allows brands to connect with consumers the instant users access the YouTube app on their televisions. The Masthead format is a response to the fact that while consumers aren’t watching as much linear TV, they are still using their televisions as a tool for experiencing streaming platforms like YouTube. In other words, YouTube understands viewing trends, and is staying nimble in its bid to connect with advertisers in an informed way.

At Google’s 2022 Marketing Live event, the company also rolled out more ad products. For example, Google is starting to offer ads in YouTube Shorts around the world after experimenting with ads in YouTube Shorts since 2021.

With YouTube Shorts, people can quickly and easily create short videos of up to 15 seconds, similar to how TikTok and Instagram Reels are used. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once a person opens one Short, they get access to tons more of them (again, think TikTok or Reels playing one after another.) According to Google, YouTube Shorts now averages over 30 billion daily views (four times as many as a year ago).

 YouTube Shorts

Shorts, much like TikTok, provides editing tools for people to create slick, high-concept content. And now brands can get in on the action because their Video action campaigns and App campaigns will automatically scale to YouTube Shorts.

 Google said that later in 2022:

  • Brands will also be able to connect their product feeds to their campaigns and to make their video ads on YouTube Shorts more shoppable.
  • Google is developing a long-term YouTube Shorts monetization solution for our creators, which Google will discuss soon.

This all sounds like a wise move on Google’s part. Google needs YouTube Shorts to succeed to thwart TikTok. And making Shorts ads shoppable capitalizes on the social commerce boom.

YouTube Shorts

Moreover, the rise of the creator economy has generated a new segment of influencer creators. As I blogged in January, the creator economy will become even more powerful. That’s because collaboration networks are proliferating. These networks give creators an all-in-one platform to create communities and build influence. In addition, gaming sites such as Roblox and Twitch offer creators opportunities to monetize their work with potential partnerships with brands, and crypto currency sites such as Rally.io make it possible for creators to mint their own currency. The big social networks such as Meta are responding by making themselves more attractive to creators. YouTube wants to monetize this activity and not lose out to its rivals.

What Advertisers Should Do

It’s important that advertisers say abreast of these developments, and if you work with an agency partner, collaborate with them closely on a way forward. (This is what our clients do with True Interactive.)

Not every video ad unit may be relevant to you. Assess the video ad units proliferating – whether from YouTube, TikTok, Instagram, and other apps – against your audience and business objectives. And think of them strategically. For instance, recently, one of our clients experienced a challenge: its share of branded search was dropping. The client, a photo curating and sharing company, naturally wanted to improve. So, we launched a video-based awareness campaign that spanned display, YouTube, Google Display Network, connected TV, Yahoo Online Video, Facebook, and Yahoo Display. Our focus: mobile and connected TV. We also ensured that YouTube ads could target connected TV screens.

As a result, our client enjoyed significant improvements in both awareness and also revenue – showing how powerful video can be as a direct-response format in addition to brand awareness. Read more about this case study here.

Contact True Interactive

We deliver results for clients across all ad formats, including video and mobile. To learn how we can help you, contact us.

Why Google Is Doubling Down on E-Commerce

Why Google Is Doubling Down on E-Commerce

Advertising Google YouTube

How often do you go shopping on Google? If your answer is “Never,” you’re not alone. Google is feeling the heat from Amazon’s rise as an e-commerce giant. Most product searches begin on Amazon, not Google. Amazon is easily the Number One online retailer, and that’s saying something at a time when e-commerce growth overall has accelerated by five years.  And throughout the past few years, Amazon has been building on all that search and purchase activity to create a gold mine of customer data that it has used to develop a thriving advertising practice. Although Google remains the largest online advertising company, Amazon is coming on strong. All this is why Google announced a major change September 29 to compete more effectively with Amazon.

What Google Announced

Google announced that it is:

  • Making online searching and shopping more visually appealing by emulating the product display features you see on Amazon. For certain items such as apparel, Google will return search results with a product results that page that resembles a visual store, not a list of links and text descriptions.
  • Soon introducing a new way to search visually, with the ability to ask questions about what you see. According to a Google blog post, “With this new capability, you can tap on the Lens icon when you’re looking at a picture of a shirt, and ask Google to find you the same pattern — but on another article of clothing, like socks. This helps when you’re looking for something that might be difficult to describe accurately with words alone. You could type ‘white floral Victorian socks,’ but you might not find the exact pattern you’re looking for. By combining images and text into a single query, we’re making it easier to search visually and express your questions in more natural ways.”
  • Including in search a feature, “Things to know,” that will make it easier to explore and understand new topics. For example, if a person searches for “acrylic painting,” Google understands how people typically explore this topic, and shows the aspects people are likely to look at first though “Things to know.” Google says it can identify more than 350 topics related to acrylic painting in this example.
  • Introducing a new experience that identifies related topics in a video, with links to easily dig deeper and learn more. Per Google, “. . . we can even show related topics that aren’t explicitly mentioned in the video, based on our advanced understanding of information in the video.” Interestingly, Bill Ready, Google’s president of commerce, told the Wall Street Journal that Google “wants to stitch e-commerce across Google’s entire suite of offerings from search to maps to YouTube. Mr. Ready envisions people watching a YouTube video of someone unboxing new apparel and viewers being able to click nearby to purchase the items, or being served an ad on Google Search if they later look for the clothes.”

What Advertisers Should Do

  • Capitalize on Google’s advertising tools that are designed to be more visually appealing. For instance, Google recently rolled out Discovery ads, which are image-rich ads designed for a more “laid back” search experience (more about that here). Google is clearly doubling down on the visual web, and advertisers should expect more visually appealing ad products as it attempts to become a stronger e-commerce player.
  • Make use of more tools that make it easier to connect online searching and shopping. Google isn’t the only company figuring out search and commerce. Instagram is another, as we discussed in a blog post recently. And there are many more apps doing the same thing.
  • Do a gut-check with your organic search team. How well are they aligning content with visual search, for example? How will Google’s “Things to know” feature affect the depth and breadth of content that you provide on your website, Google My Business listing, and elsewhere?
  • Keep your eyes open and your budgets flexible. The online advertising space is getting more competitive and interesting for retailers. We have been blogging about the rise of Amazon Adverting for some time – as well as the growth of advertising services from retailers such as Macy’s, Walmart, and Walgreens. They’re all using their first-party customer data to build online advertising platforms. Depending on your target audiences, they may provide very competitive alternative to Google – an example being Macy’s for fashion-conscious shoppers or Walmart for advertisers whose audience aligns with Walmart’s multi-channel customer. (And we can help you succeed on all these platforms.)

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Why YouTube Shorts Matters to Brands

Why YouTube Shorts Matters to Brands

YouTube

TikTok has another challenger. As we’ve blogged, apps like Snapchat are creating their own short-video-making platforms in a bid to carve out space in an increasingly crowded field. Now Google’s YouTube has joined the party with YouTube Shorts. Read on to learn more about Shorts and what they bring to the table—for users, and for brands.

What Are YouTube Shorts, and How Do They Stand Out?

If you are familiar with TikTok or Instagram Reels, you’ll get the basic premise of YouTube Shorts: using the YouTube app, people can quickly and easily create short videos of up to 15 seconds. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once you open one short, you essentially access the motherlode in that videos start playing one after the other. Just swipe vertically to get from one to the next.

Shorts, much like TikTok, provides editing tools you can use to flex creative muscle. Users can string clips together. Adjust playback speed. Add music and text. And as YouTube has blogged, creators can play off of existing content: “[Y]ou can give your own creative spin on the content you love to watch on YouTube and help find it a new audience—whether it’s reacting to your favorite jokes, trying your hand at a creator’s latest recipe, or re-enacting comedic skits.” (Notably, creators are in control of their material; they can opt out of having their long-form videos remixed in this way.)

Shorts comes to the U.S. in beta after a beta launch in India last fall. The platform enjoyed success in India, finding a comfortable niche in the wake of the TikTok ban there. Now Shorts brings its opportunities to the States.

Why Did YouTube Launch Shorts?

Shorts is YouTube’s response to the huge popularity of short-form video. Who wouldn’t want in on that action? But Shorts is also meant to be the answer to a problem faced by new creators: it’s hard to break into the video-making world. According to YouTube, “Every year, increasing numbers of people come to YouTube to launch their own channel. But we know there’s still a huge amount of people who find the bar for creation too high. That’s why we’re working on Shorts, our new short-form video tool that lets creators and artists shoot snappy videos with nothing but their mobile phones.”

Think of it as users being able to dip a toe in creative waters without having to film and edit a full video. And because Shorts are counted like regular video views, creators hoping to make money from YouTube by getting accepted into the YouTube Partner Program (YPP) can use Shorts to do so. Users must accrue 4,000 valid public watch hours in the previous 12 months to quality for YPP, and Shorts are an accessible way to meet that threshold. YouTube has also blogged that they are taking a “fresh look at what it means to monetize YouTube Shorts and reward creators for their content,” hinting at additional opportunities to come.

Why Do YouTube Shorts Matter to Brands?

The opportunity YouTube Shorts represents for creators is good news for brands, too. Why? For one thing, creators are potentially powerful sources of great user-generated content that can benefit brands – for a recent example, consider the incredible visibility that skateboarder Nathan Apodaca created for Ocean Spray and Fleetwood Mac with a TikTok video.

It’s worth mentioning that apps like YouTube Shorts are of particular interest if your target market is Gen Z or Millennials. As noted by iabuk.com last fall, short-form video is surging in popularity, particularly with these generations.

What Brands Should Do

  • Stay abreast of new apps like YouTube Shorts. Knowing what’s out there informs decision-making about where and how you want to make your brand known.
  • Understand how your target audience communicates. Are you courting Gen Z or Millennials? Go where they are. And as noted above, platforms for short-form video are a logical place to be.
  • Consider whether creating your own shorts makes sense. As Social Media Examiner notes, brands that create their own Shorts stand to get some attention: “for businesses, the strategy right now with Shorts is to get exposure and hopefully subscribers to your channel so people will see some of your content outside of the short shelf.” Meanwhile, this post from HubSpot will help you think through how to get started with YouTube Shorts.
  • Look at the big picture: YouTube Shorts is yet another example of the proliferation of short-form video. If you have not done so already, adapt your video content strategy for both brief snippets (e.g., teaser content) and longer-form content (e.g., educational tutorials).

Contact True Interactive

How can short-form video elevate your brand? Contact us. We can advise.