YouTube deploys ad frequency caps to woo TV dollars at Brandcast

YouTube announced new ad frequency controls to give brands a way to manage how often their commercials run, in an attempt to lure TV media buyers as part of its upfront presentation at Brandcast on Tuesday. Brandcast is YouTube’s yearly showcase for advertisers, and this year YouTube returned to a live event after the pandemic forced it to go virtual. Brandcast also was moved to what is considered the “upfront” season, weeks after digital NewFronts, in order to more directly appeal to TV advertisers. On Tuesday, YouTube led the program by showing off new advertising controls that could appeal to brands that are used to TV campaigns, with a new way to cap frequency. “This has not been available before,” said Allan Thygesen, Google’s president of Americas, who spoke ahead of Brandcast. “We’re allowing advertisers to set a weekly frequency goal.” Anyone who has watched YouTube is aware there can be redundancy in commercials streaming on repeat. Thygesen said the new caps could limit the amount of times spots run on YouTube, YouTube TV, and third-party apps that use Google Display and Video 360 ad platform to fill ad slots. Publishers outside of YouTube use DV 360, which gives Google the ability to manage the ad load. Google tested frequency caps with Discovery+, the app that is now run by Warner Bros. Discovery. “Modeled exposure across all these surfaces, not just YouTube,” Thygesen said. Sign up here for upcoming events and awards Ad Age In-Depth: TV Pivot Ad Age 40 under 40 Ad Age Small Agency Conference & Awards YouTube is a formidable presence on Connected TVs, through the YouTube app, YouTube TV subscriptions, and the Google ad platforms that reaches connected TV apps. YouTube has claimed that the YouTube app alone serves 50% of the ad-supported connected TV audience. Thygesen said that brands are driving more efficient “incremental sales” compared to linear TV and non-Google online video. Google, which owns YouTube, has been trying to convince more advertisers to make upfront ad deals, and to ditch TV. Typically, upfront sales season is a time for major brands to lock in ad budgets with the networks like NBC Universal, Disney, CBSViacom and Fox, but the networks all have connected TV platforms now, too. Also, Amazon, Roku and other digital platforms are competing for more ad dollars. In the first quarter, YouTube’s ad revenue reached $6.87 billion, a 15% increase from the first quarter of 2022. The growth was slower than the rapid increase it experienced in 2021, when it grew almost 50% in the first quarter of 2021. Register for Ad Age's special report newsletter to receive updates on the Upfronts and other big events YouTube used Brandcast partly to showcase how the ad platform is growing in sophistication with frequency controls and measurement tools. Thygesen pointed to a campaign with DoorDash, which led to a “50% incremental uplift” in drive sign-ups. Meanwhile, Discovery+ used the frequency caps while promoting a new show. Discovery+ only wanted to show the ad to an individual three times a week, and YouTube claimed the metered exposure increased awareness twofold for the show, compared to non-frequency capped campaigns. Thygesen gave one of the keynote speeches at YouTube Brandcast at the Imperial Theater in New York on Tuesday. YouTube also focused on the video programming on the app, highlighting creators like Jimmy Donaldson, better known as MrBeast, and Patrick Starrr. In recent years, YouTube has moved away from creating its own shows and channels, paid for with Google money, to highlight the homegrown creators that are increasingly driving viewership. YouTube also is competing with TikTok, the Chinese-owned app that has surged in usage. A recent report from eMarketer found that 40% Gen Z, people born after 1996, spend more than 3 hours a day on TikTok, which is about the same as YouTube.

YouTube deploys ad frequency caps to woo TV dollars at Brandcast

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