Google has thrown down the gauntlet (again) – the claim is that Youtube ads provide a better return dollar-per-dollar vs. TV ads. They are spinning this not as the destruction of TV ads, but instead as an alternative. Spend smart money on Youtube ads as a good place to spend on digital. Harmless, right?
However, this is an interesting downward spiral – if advertisers start spending more money on digital because it banks better profits, they will continue to spend more there, which leads to → less inventory on TV → less money for TV → worse content on TV → lower ratings → less consumer interest → less advertising dollars … and continuous downward spiral. You can start to see why pay TV and broadcast TV are a little stressed. Continue reading “Youtube Ads = Better Returns Than TV”