'Content creators to lose out with YouTube's ad policy changes'

YouTube has prohibited sponsors' brand logos and products on graphical video overlays unless the sponsor buys through Google, which will eat into video monetisation by content creators

Jagadeesh Krishnamurthy | Mumbai | March 3, 2015

YouTube has recently clarified a policy change in a revised FAQ document (https://support.google.com/youtube/answer/154235) regarding video monetisation, wherein video overlays of sponsor logos and product branding are no longer allowed – unless the sponsor pays Google to advertise on that channel. A Digiday report, which was first to report about this change, mentions that a YouTube representative clarified that the changes were aimed at preventing advertiser conflicts and ensure that viewers did not feel bombarded by ads.

YouTube policies have long required content creators to indicate that a video includes a paid product placement. This is done through a check box in the monetisation section of video settings. The policy change prohibits branded overlays from such sponsors, unless they buy ads through Google. Here's the policy language, from YouTube's help and support pages:

“We allow text-only title cards where there is paid product placement for the purpose of paid product disclosure only. Graphical title cards, including the use of sponsor logos and product branding, are prohibited unless there is a full Google media buyout on the partner content by the sponsor.”

In India, some of the popular YouTube channels like The Viral Fever Videos (TVF), All India Bakchod (AIB), and Home Veda, among others, have uploaded brand-integrated videos. Considering that YouTube keeps 45 per cent of ad revenues that play on YouTube, this policy change will effectively eat into the video monetisation by content creators, who get to keep the entire amount currently.

Agreeing with the shortage of monetisation opportunities for content creators, Satish Ramachandran, Senior Vice-President, FCB Ulka Interactive, noted that this policy change definitely affected the monetisation for the channel. “There are some who have sales team, their roles may have to be redefined,” he added.

Vikram Menon

Observing that the immediate implication is largely towards content creators or YouTube Stars and multi-channel networks, Vikram Menon, President and Country Head, OgilvyOne Worldwide, added, “The core monetisation model remains the same. However, the branded placement options that a creator had will be largely diminished. As an aside, this may have an adverse impact on the quality of content being generated.”

Sharing Ramachandran's opinion of YouTube being the gainer with this change, Menon pointed out that YouTube will also be announcing new ad units, called 'Product cards', which will provide a comparable ad unit that brands will have to now buy. This six-second pre-roll lets brands place a quick message before a sponsored video, and will reportedly be available as a regular part of YouTube's media package for brands.

Arunabh Kumar, Founder and Creative Experiment Officer, The Viral Fever Media Labs, and who runs the popular The Viral Fever Videos YouTube channel, said that they were looking at YouTube as just a delivery platform. Agreeing that YouTube is the only platform currently which offers the reach, Kumar noted that they had been using other digital platforms to seed their content.

Menon saw no immediate threat for YouTube's dominance in India. “Globally, however, the story may be different with the several other video content sharing platforms available,” he said.

Prashanth Challapalli

Prashanth Challapalli, Senior VP and Digital Head – iContract, Contract India, felt that the policy change had a major impact for content creators, since a big platform got barred for them. However, he believed, “We might see alternate platforms emerge to address this need.”

Explaining the rationale, he said, “The key here is how much money the content creators are making via pre-roll ads? If it is not a lot and if most of their money is coming via the brand that has commissioned them to create content, I don't see the creators getting affected too much, because I can easily see a Facebook and a Vimeo stepping in to fill the gap. Content on YouTube is being discovered on FB and Twitter. By the same logic, if the content is now hosted on Vimeo, for example, people will still end up seeing it. Facebook today is driving huge amounts of views. I think in the end, YouTube might just end up regretting this decision and the real winners here could be FB and Vimeo.”

Indian content creators like TVF and AIB are already using other platforms, especially Facebook, to seed their video content hosted on YouTube. TVF's Kumar equated YouTube to a DTH service provider for television channel, and said, “As content creators, we are looking at YouTube merely as a content delivery platform. Just like how a television channel will try their best to reach their audience across all competing DTH services, we will continue to use all platforms to reach our audience. Smart content creators are always going to figure out a way to create and distribute content in their own ways,” he added.

Signing off, Kumar hoped that in future, YouTube would deliberate such changes with content creators before implementing them.

With the millions of videos being uploaded daily on YouTube, and scores of channel owners trying to monetise their content, there is an uphill task ahead for the video platform to penalise offenders.

Info@bestmediainfo.com

Info@BestMediaInfo.com