The changing ways people watch YouTube also means that a view has different value in different contexts. This is why we continue to develop additional metrics beyond views and view-through rate–like Brand Lift, or direct actions and conversions – to quantify ad impact, while also developing new ad formats that are matched to viewing patterns and advertiser goals. While we work on these new ad experiences, our priority is to align pricing with anticipated advertiser value.
This led us to introduce Smart Pricing over a year ago, which aligns media costs with anticipated value of a given context. For example, if we know a user is watching content in a longer, TV-style session – we will price those ad impressions according to what our effectiveness models indicate is the typical value of that type of viewing mode. Smart Pricing delivers better results for advertisers – at launch we saw:
Beyond Smart Pricing, we are also working on ways to align YouTube media directly to your marketing objectives, and delivering value as you measure it. For instance, with video reach campaigns, you can optimize for your reach and awareness goals more easily using multiple video creatives and formats within a single campaign. Google’s machine learning will automatically serve the most efficient combination of those formats to help you reach your audience at scale.
The variety of viewing contexts is an asset, as YouTube increasingly meets the needs of viewers looking for short form, long form, TV screen experiences, a go-anywhere music player, social video, highly produced traditional video and more. And the continued evolution of our ad experiences means brands will see a benefit from each viewing mode. We take pride in continuously evolving our platform based on changing user behavior and will continue to experiment with delivering advertiser value across a variety of user contexts. And we invite you, our trusted customers, to partner with us as we build an effective video ad system for the age of choice.