PYMNTS-MonitorEdge-May-2024

YouTube Making TrueView In-Stream Ads More Actionable

YouTube is enhancing the tools it provides to advertisers by expanding its TrueView in-stream ad format.

According to reports, the new in-stream ad format will enable viewers to take actions when viewing the ads instead of just clicking. For instance, YouTube is letting advertisers add location elements or forms to the ads so that viewers can sign up for the service or get an email with more information. The report noted that Chili’s tested the new ad format to encourage more signups for its loyalty programs.

Advertisers can also now enable app downloads, as well as the ability to buy movie tickets and book a trip, all from within the ad. Some of the brands testing the new features include Vodafone, 20th Century Fox, Headspace and Maybelline. The report noted that YouTube said Vodafone reported a 3.5 percent click-through rate and a 2.3x incremental lift in ad recall as a result.

While some viewers will find these more interactive ads useful – for example, having the ability to buy movie tickets simply by viewing a movie ad – there is the chance that others could consider them intrusive.

In March, YouTube reached a new milestone: It is now the top-grossing iPhone app in the U.S. for the first time. According to reports, the U.S. is the only country where YouTube’s iPhone app has ever hit the top spot. And while the video sharing network has come close to the number one spot over the years, it never reached higher than number three until now.

What’s the reason for the achievement? Its climb can be attributed to the launch of YouTube Red (which has since been replaced by YouTube Premium) in-app subscriptions back in 2015. Within a month of Red’s arrival, the site’s iPhone app jumped to number six. At the time, it was estimated to be bringing in more than $100,000 per day — and maybe even as much as $300,000 per day. Since Red’s launch, YouTube’s iOS revenue grew as the feature became more popular. In fact, most of the site’s revenue came from YouTube Red subscriptions, as well as Super Chat purchases, which is YouTube’s virtual tipping mechanism.

PYMNTS-MonitorEdge-May-2024