Wednesday, October 2, 2013

"YouTube, Fox Sports Team Up for Online Video Ad Sales"

From Ad Age


Analysis by Melissa Kniceley in SRM 435 (section 2)

The prevalence of social media and ease of information searching has made the internet more relevant than ever before. Each year, advertising tactics and ways to reach the consumer are becoming more and more creative. Marketers are constantly looking for new ways to make their company stand out from the overflow of advertisements individuals are presented on every site. 


Burger King has found a unique way to target their customers that could pave the way for future companies. Burger King has teamed up with Fox Sports to be the sole sponsor of their “Inside Fantasy” section on their YouTube channel. The branding opportunities for Burger King are virtually limitless- they are featured on the channel’s banners, advertisement videos that pop-up before the videos, and finally within the video itself. This channel of advertising has not been utilized before and will likely become more popular in the coming year because of the immense traffic YouTube’s site gets each day. 

Many of the exact details of the deal between Burger King, Fox Sports, and YouTube are not disclosed. What is public knowledge is that Burger King “made an upfront spending commitment in exchange for a guaranteed number of video views and ad impressions.” The number of video views and ad impressions Burger King is guaranteed from the deal is unclear. The ad revenue split between YouTube and Fox Sports was also never disclosed. Typically, YouTube takes 45% of the ad revenue but they have been known to work out smaller percentages with some companies.

From a marketing standpoint, utilizing YouTube as a promotional tool to increase brand awareness is very smart. The number of site visits and video views YouTube gets each day are exponentially increasing so it is beneficial for any company to piggyback on their traffic. Being able to partner with specific channels makes marketing on YouTube ideal because companies can more efficiently reach their target market. The guaranteed number of video views and ad impressions is also a plus that other forms of advertising cannot offer. For example, a company may choose to send out an email to their database but the majority of bulk emails sent out are never opened because they are not sought after; in comparison, placing a video advertisement before a video that the individual clearly wants to view requires them to spend time acknowledging the brand whether they want to or not.

In conclusion, internet marketing as a whole is on the rise so it was smart for Burger King to utilize a new channel to reach their target market. The amount of branding they are getting out of their deal with Fox Sports is enormous and has the potential to increase their sales drastically. Because the campaign just recently launched there has not been any concrete results as to whether they will see a return on their investment or not, but I personally can envision a great return for the company.


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Analysis by Matt Dumblauskas in SRM 435 (section 2)

The focus of the article concentrates on Fox Sports and YouTube partnering to sell advertisements on Fox Sports’ YouTube channel in which Burger King has been chosen to be the initial sponsor. This campaign is being used throughout Fox Sports’ “Inside Fantasy” segment on their YouTube channel. A Burger King advertisement can be found throughout the channel and the logo is even found during in the actual videos. Although the Fox Sports YouTube channel does not have nearly as many subscribers as the sport media industry giants, it still receives a good amount of internet traffic and is continuing to grow. The specific amount of money that Burger King is spending is undisclosed. 

Fox Sports is one of the first sport media channels to jointly sell ads with YouTube. This theory of sponsoring YouTube channels is fairly new and I believe it is a trend that will continue to grow. From a promotional standpoint, it is smart to pair this advertising with the “Inside Fantasy” segment because the show will bring repeat viewers to the channel. It is also a good idea for them to use Burger King as their preroll advertisements on the actual videos because I am unsure how many people watch videos by going to the actual channel rather than searching for the single video they want to see. Having a different look and feel than other YouTube channels is a good way for the Fox Sports channel to attract extra attention. Aesthetics are an important factor in gaining and retaining the consumer’s attention. In the future, I can see companies related to sports take a similar approach and advertise on different YouTube channels that coincide with their mission and have the same idea as them.

This is relevant to this course because the sports industry is always looking for new ways to market and advertise to their customers. This is a great example of how marketing strategies change and adapt to the consumer. With the increase of social media, more and more companies are finding different ways to tap into the market. This also shows how a brand that has nothing to do with sports uses sports as a platform to advertise because of the sheer numbers that it appeals to.

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