YouTube began letting brands target their ads based on anonymized information Google collects on people outside of YouTube, such as people’s Google search histories, a year ago. Now, the Google-owned video service is adding the search-based targeting option to its Google Preferred ad-buying program, which packages the most popular 5 percent of YouTube channels into category-specific bundles that brands can advertise against.
With the new targeting option, a brand buying Google Preferred’s lineup of music channels, for example, could reach people who are watching those channels and have also searched for consumer electronics products.
“Five years ago when we launched Google Preferred, [advertisers] wanted to navigate the entire body of YouTube a little bit more easily with more of a content lens and buying more similar to television,” said Tara Walpert Levy, Google vp of agency and media solutions. “The ability to overlay that audience interest in order to get the right messages to the right people against that most attractive content is something the market seems finally ready for.”
“Google is taking the best of what they do with search, with maps, with some of their apps, and they’re taking that data and applying it to their TV-like object, which is Google Preferred. It’s smart,” said Susan Schiekofer, GroupM chief digital investment officer. The agency’s clients have increased their spending on Google Preferred year over year, especially those clients targeting younger viewers, she said.
By infusing its TV-style ad-buying program with audience-based targeting, YouTube could pre-empt its TV rivals who themselves want to use TV and audience targeting to overtake the digital media companies like Google and YouTube that had cut into their share of the advertising market. It could also undermine Facebook, which has recently begun pitching advertisers on its own version of Google Preferred.
Last month at Recode’s Code Media conference, 21st Century Fox President Peter Rice saidthat once all TV becomes streamed over the internet, TV ads will be able to be targeted in the same way that digital ads are. And after that happens, TV companies “will be able to take back share” of the advertising market from digital media companies, he said.