YouTube Gives TV Networks The Same Ad Deal As Digital-Only Content Partners

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YouTubeNow that YouTube has successfully lured TV networks to post their professionally-produced content on the site, in part with “sweetheart” revenue sharing deals, it’s considering the courtship period over.

AdAge is reporting  that YouTube will be giving these prestige content providers — TV Networks and film studies —  the same ad revenue sharing deal as digital-only video producers have long received. Instead of keeping 70 percent of ad revenues, the networks will have to settle for 55 percent, YouTube’s standard split.

YouTube is betting the brawn of its audience numbers will continue to attract the networks even when their so-called sweetheart deals come to an end. And there is still some sugar for the networks. AdAge reports that YouTube is lowering its minimum ad rates and allowing content providers to keep 100 percent of the revenue earned above YouTube’s minimum rate. They’ll just need to convince advertisers their content is worth a premium above everything else on YouTube.

According to AdAge, YouTube plans to have the new split in place for all partners by January 2014.


About The Author

Ginny Marvin is Third Door Media’s Associate Editor, assisting with the day to day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin writes about paid online marketing topics including paid search, paid social, display and retargeting for Search Engine Land and Marketing Land. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

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