Blog Post #5: You Think You Skipped Through an Ad? Think Again! A Hint: You Are Kind of Benefiting…

Most people are exposed to advertisements every day about 500 times. This could be the same product or different products. The only source of way audiences back in the 1950s viewed a tremendous amount of ads was through their T.V. where wealthy and higher class income households were lucky enough to buy it.  Other sources such as magazines, newspapers, and banners reached most people. In our society today, our T.V. is in our pockets. This smartphone invention was the start of a societal revolution that no one quite expected and a chance, perhaps, to reflect on the impact of the revolutionary technologies to come.

To 1 billion users and 2.5 million apps floating around, YouTube, advertisers, and audience benefit each other through video streaming. YouTube’s main goal is to try and help advertisers buy media inventory in a way benefiting their companies’ product and profits. Companies and advertisers prefer their Ads to be watched fully and completely for the audience to understand their product. However, YouTube thinks it is not too important and therefore released an effective invention for its app users, Skip Ad. To many users, this is “the greatest invention” and a sign of relief to many who prefer not to sit through a boring Ad and have the power to skip it. But does YouTube get paid less or the same amount from the advertisers as if the full Ad was played?

With many people skipping the ads, YouTube succeeded in making more revenue charging on a cost-per-impression basis rather than failing to catch the audience’s attention to the product through a 30-second ad. Recently YouTube added advertisements throughout the video where more products can be exposed to the audience. For example, through a 20-minute video, 5 yellow squares are scattered along the video time bar which shows interruptions of ads throughout the video. This new way of advertising and going for the largest possible audience could be seen as a clever way to tap new revenue sources. Not only does YouTube benefit by making more revenue but companies and advertisers are reaching far more audience through the skip ad invention. 

Snapchat, another platform for video streaming among friends and families also took on the cost-per-impression basis. While watching and going through subscriptions and friends’ stories, 3-5 second pop up ads appears shifting our attention to the product then back to continue watching stories. Snapchat is becoming the largest video streaming platforms were 100 million people are using it daily. Therefore, it is a great way for companies and advertisers to take chances and reach these audiences to sell their products.

Without the app users or the audience for the many distinct ads, neither YouTube or companies would be making any profit. To satisfy the costumer, YouTube’s Skip Ad invention helped make video streaming far less irritating and more fun to watch the various contents YouTube offers. The audience can now get what the product is, its use, and advantages in 5 seconds rather than a long extensive 30-second ad. Today’s presentation and streaming for an ad helps a person decide whether to get Chipotle or Panera if a pop-up ad of Chipotle appears right before they grab their food.

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