Want to Advertise Your Brand on YouTube? YT Stars Will Do It for You

You remember when Twitter teamed up with American Express to help small businesses advertise on the social network? Well, during a  presentation at VidCon, YouTube’s Shishir Mehrotra – president of product management, announced that the company is about to roll out something similar, on their own, though.

The new service called “Video Creation Marketplace” will be… well, exactly that – a marketplace where digital agencies will be able to find YouTube “stars” who suit them the best and who will host their videos, for a financial compensation, of course.

According to Baljeet Singh, Youtube’s group product manager, the company spent tens of millions of dollars since 2007, when they decided to provide revenue to people who create viral content regularly and manage popular channels on YouTube. So far, a growing number of such people manage to get paid by hosting videos for other companies on their channels – a trend that YouTube will try to formalize with the new service, making it easier both for content providers and agencies to interact.

The new service will allow successful content providers, or partners – as YouTube calls them, to create profiles where they will be able to document their past collaborations with brands, or simply fill in basic information such as target audiences and types of brands they are suitable for, in case they haven’t had any experience in advertising. Such a database of YouTube stars will make it easy for advertising agencies to search through, using nothing more than keywords and other parameters they find relevant. From that point onward, YouTube will have no participation in the negotiations between the two parties.

According to Mr. Singh, the platform will be very useful for small businesses, which will be able to achieve great advertising results with smaller amounts of invested money.

“The creativity coming out of YouTube rivals that coming out of creative agencies any day of the week… And we already know that their content performs really well on YouTube,” said Mr. Singh.

A great example that this service has a bright future is the one of Devin Graham, the owner of DevinSupertramp YouTube channel. He started with making videos for smaller brands such as 5k Race, Jet Lev and Dirty Dash, as they found his expertise in shooting super inspirational, lifestyle films (which never generated less than six figure view counts) just appropriate. Now, as his YouTube popularity has grown exponentially, he is negotiating with Intel and Red Bull on several projects. Read the rest here

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$0.45 USD - $4.00 USD

Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

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