YouTube is offering marketers some advertising time guarantees in its latest attempt to nab a larger share of the ad dollars that major TV networks get, while Yahoo Inc. is trying its hand at building its own video-sharing service.
The online video-sharing website is pledging to air ads across its channels until the content reaches a certain percentage of the audience being targeted by the advertiser, the Wall Street Journal reported. This is a first for YouTube - despite requests for such deals by marketers, the company has only tested the concept on a small scale. TV networks have long offered such guarantees to marketers.
Google Inc.-owned YouTube also plans to reserve ad space for advertisers who agree to purchase time in advance in the best performing 5 percent of shows on its channels, according to the article.
The move comes as Google competitor Yahoo makes its move into the online video-streaming market dominated by YouTube. The Sunnyvale-based company is developing a strategy to attract some of the most popular YouTube stars and networks to stream their content on its site, according to Re/code.
The plan, expected to launch over the next few months, will take advantage of complaints by video creators and owners who say they're not making enough cash on YouTube. Yahoo is offering them better returns through better ad revenue or guaranteed ad rates, according to the article. The company will also allow extensive marketing on its homepage.
Yahoo's initial plans don't involve exactly replicating YouTube's open upload platform but will instead be more particular in its content.
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