YouTube claims to be the largest jukebox in the world – and now it wants to cut more advertising dollars from music fans on the platform.
The video giant is launching 15-second audio ads, the first format designed to reach YouTube users who listen to music or podcasts (e.g., in the background). YouTube is also introducing the ability for advertisers to purchase in dynamic music lineups, including a collection of popular genre channels such as Latin, K-Pop, Country, Rap and Hip-Hop. Marketers can also buy ads that are targeted by interest, such as mood or fitness or relaxation / meditation.
The YouTube platform expects steps to increase advertising revenue from music, including more than 700 million official tracks plus remixes, live performances, covers and other music content. And that has put YouTube in more head-to-head competition with Spotify, which has been selling audio-only ads and targeting music genres for years.
YouTube music pioneer Leo Cohen called the new ad push “an attempt to help artists in the industry earn more from the ad-period.” He said YouTube’s focus on increasing advertising revenue for music content ultimately benefits its record label partners and their artists.
“Earning subscriptions is important, and now [music companies] Understand the opportunity to advertise, ”Cohen said. “They love that we’re building muscle on both sides.”
On the pitch of Madison Avenue, YouTube tries a lot. It states that more than 2 billion logged-in viewers watch at least one music video per month, and more than 50% of those who consume one piece of music a day listen or watch more than 10 minutes per day.
Video is still the biggest category for YouTube: 85% of music costs on the platform are at the forefront (i.e., including video play on any device). But the remaining 15% of marketers have a fair chance to tap into the audio ad, said Adam Stewart, VP of YouTube sales.
“If someone is on a playlist and doesn’t have a video, it’s a better user experience,” Stewart said.
YouTube says that audio ads are now in beta, available through auction in Google ads and at the same time targeting viewers and other options such as video promotion and display per thousand (CPM) and video 360 via audio ads, the visual element is usually a still image or general Is animation; Similar to YouTube in-stream video ads, they include clickable areas to link to their website.
The company claims that early tests of audio ad promotion on YouTube have led to a significant rise in brand awareness. Shutterfly, for example, saw a 14% ad retrieval lift and a 2% optimization lift in its target audience using YouTube audio ads. Continued “significant lift” in awareness.
Meanwhile, the option to place ads against YouTube’s dynamic music lineup is available in addition to the YouTube Select Music lineup, which includes the top 5% premium music content across the worldwide service.
Here are some of YouTube’s global music lineups with sample music artists or channels that each YouTube includes:
- Rap and hip-hop: Drake, Big Shan, Logic
- Latin pop and hip-hop widening: Bad Bunny, J. Balvin, Nick Jam, Sakira
- K-Pop Extended: Blackpink, BTS, Exo
- Rock Music: The Beatles, The Killers, The Fighters
- Pop music: Coldplay, One Direction, Kelly Clarkson
- Country Music: Blake Shelton, Luke Combs, Kelsia Balerini
- Brazil Country Music (Certanejo): Maralia Mendonasa, Gustavo Lima, Bruno e Maron
- Fitness and workout music: 7 Clouds, Prepix Dance Studio, Calvin Harris, Madonna