For a few years now, YouTube has openly discussed aspirations to position themselves as the leading content provider for the projected Internet TV revolution. Their plan: leverage their 160 million followers into greater advertising opportunities by establishing an online television network. Advertisers will be able to acquire revenue based on ads, product placement and sponsorship. The biggest benefit of custom-generated content for YouTube is that in order to watch, users are required to register, allowing for demographic segmentation and data acquisition.
Brands can also afford to hone in on their audience from a psychographic standpoint, due to the sheer quantity of content to choose from on YouTube. Because there’s so much out there, users can pinpoint exactly what type of content they want to view, forcing brands to orient their channels to a more specific target.
So, what does this mean?
It means there’s an opportunity to carve out a new, active audience base. Imagine sponsored channels dealing with equity content, or allowing on-premise or retail partners to tap into a sponsored radio station. This opportunity to create quality online television with interesting and premium content will influence users to stick around longer, while only targeting those who want to be exposed.
What do you think? A natural evolution of online content, or a flash-in-the-pan revenue gambit?