Many businesses have lost some of their profits and cut advertising budgets due to the pandemic. Since the main sources of income for YouTube are advertisers, the platform itself has dipped in profits.
This can be seen by the fact that bloggers have become more likely to resort to buying ads from other users and other ways of making money on the platform, since the service itself cannot pay much. Because of this, today many creators either collaborate with other authors or buy YouTube subscribers to increase the audience of specialized companies.
We, for now at least, live in a world where the profits of specific companies are the highest value for everyone. That is, the service found itself in a situation where there was less money. The video giant’s hired management bonuses are likely to be directly related to the company’s revenue (and to a lesser extent, other indicators).
What will a hired manager do when he risks being fired from his dream company, or when his annual bonus is threatened with non-payment?
Who and how can YouTube get big budgets?
First and foremost, these are giant companies such as Mercedes, Toyota, Gucci, Coca-Cola and so on.
Medium-sized advertisers have cut their budgets and it will not be possible to restore them quickly, while small advertisers were not particularly interesting anyway. And now if they are not ruined, it is already good.
How can you squeeze more money out of, for example, Mercedes? In the reports and presentations (to shareholders) of the Mercedes marketing division, the effectiveness of advertising on this platform should overlap all other channels of the company’s advertising.
That is, if earlier it was important to make interesting and high-quality content for a wide audience, but now YouTube needs content like air, which will be watched by a monetary audience. And the viewing itself is not as important as the transition through embedded advertising.
So it was before, but the graphs in the reports grew by themselves and no one took any action.
What will happen to the insolvent YouTube audience?
Previously, they watched tons of videos about cats and various tops of the tallest trees and did not click on ads (which was sad, but not critical from the point of view of managers). The situation has changed. Now everything is simple! Audiences of all income levels will be more likely to be offered videos from major brands.
You still won’t be able to get money (advertising clicks) from a part of the audience, but there is a chance that after some time the viewer will remember the video he watched and will already be able to buy an expensive car or branded clothes.