Yup, that’s right. Starting on October 28th, YouTube will be launching a new way to watch videos and listen to music: YouTube Red.
YouTube Red allows users who pay $9.99 a month to watch videos ad free. Videos will soon spread to include some member-only exclusive shows on the platform. Plus, Red also includes YouTube music, making listening to music and discovering new tracks easier than ever.
Maybe this is a point where advertisers have to rethink their strategy on placing ads. YouTube is the biggest and most popular platform for video advertising. Now that users have the option to opt-out of watching ads, this poses an issues for advertisers. But maybe this is a good push for companies to work on owned vs. paid media?
Instead of placing videos forced upon viewers on YouTube, creating content specifically related to your consumer’s interest that provides valuable and engaging information can be way to reach those who have opted out of ads. Thai commercials have lately been known to touch viewers and through that been able to go viral through the sharing of these short story videos. Take the following for example:
Of course, the release of YouTube Red doesn’t mean the fall of video advertising as we know it. The amount of people who are willing to expend $9.99 a month to bypass ads will only make up a percentage of the platform’s user base. Besides, you can probably draw conclusions as to those who aren’t willing to pay, and tailor ads based on their characteristics!
