This is the true quality index of advertising, no more detailed than this data to show the excellence of a patch ads, patch click-through rate is the result of advertising performance indicators, and skip time is the process of advertising performance indicators.

Domestic Youku Love Qiyi's non-skipping patch completely can not do this, it only knows the exposure to which people, also know who clicked, but the overall patch click-through rate generally does not exceed 2% of the case, the remaining up to 98% of users on the real behavior and attitude of Youku know nothing about advertising, is a black box.

YouTube's skip button becomes a key to prying open the black box, adding an extremely real interaction that can be negative (skip right away) or positive (stick to it), providing effective space for advertisers to optimize their ads.

Don't look down on this indicator, when you have one, you can redirect people who are watching close to completion (the next time you put it to someone who's already had some interaction) and Look alike (recommend another group of people who are similar to the other based on the characteristics of a known part of the population). Click is the target customer, read is the potential customer, so YouTube by adding this little skip button, let him thousands of users have become its free ad quality judge, you skip it, it peeps at you, think about it!

If your ad is skipped, YouTube won't charge you, you'll only be charged if your ad is played for 30 seconds or if it's finished (the length of the ad is less than 30 seconds), so YouTube named it "Tureview Ad," which means you only pay for real viewing.

Advertisers are highly available for this form of bidding, paying only for people who are really interested in advertising, and collecting information from people who are not interested in advertising, which means that the advertiser experience is really friendly, and their spending on YouTube in 2016 was $12.6 billion, which is enough to illustrate the powerful appeal of YouTube ads.

Not having to pay for invalid skips undoubtedly gives advertisers a friendlier experience in ROI calculations and budget control, which explains why many YouTubers often call on people not to skip front-page ads in videos because advertisers don't pay because advertisers don't pay, and advertisers certainly don't have ads to split up.

Hearing this, a lot of people are starting to say that YouTube is too generous to charge for watching a Facebook video ad for more than 3 seconds!

In fact, it's not about kindness, it's about different ways of bidding, and it doesn't mean you're necessarily less expensive to run video ads on YouTube than Facebook.

Bidding by exposure, playing bidding in 3 seconds, bidding by Play Complete are just three different bidding methods, of course, these three bidding methods from the advertiser-friendly degree must be a recurring relationship.

"In theory, the overall unit cost is in fact the same in the case of full competition (the detailed logic of the bid cost is not repeated here)." As for how to find the best way to bid this skill in bidding ads corresponding to an important concept called "creative optimization", or "CTR optimization", the following topics will continue to talk about how YouTube allows advertisers to create friendly ads under this mechanism.

Advertisers spend 1 million a day to buy an open-screen advertising, no matter how bad the material will be online, he has no incentive to improve his material, because even if the material click-through rate is high he pays 1 million money and not because the click-through rate of high cost into 500,000 (strictly speaking, advertisers from the overall return point of view is motivated to optimize pricing advertising, but pricing advertising will not from the cost mechanism to encourage advertisers to optimize the material), so "Dragon Treasure Point" came!

But YouTube's pay-per-view ads can encourage advertisers to actively optimize their ideas from the mechanism, the better the creative materials, the higher the playback completion rate, the lower the cost of advertising, How does YouTube achieve this mechanism?

Take a simplified model: Let's say YouTube has only 100 times a day, Nike and Adi are bidding, Nike has a 10% completion rate, and Adi is 1%, both of which bid $1 for a play to finish, so which one will Google come up with? Nike, of course, because this 100 ad opportunities give Nike he can make 10 yuan, and to Adi can only make 1 dollar, Adi in order to win the bid must complete a bid of 10 yuan for a play, that is, the completion rate determines the cost of the ad auction.

It is such a mechanism, let advertisers play to optimize their advertising performance, and strive to let everyone do not skip ads, in order to increase their own playback completion rate, thereby reducing the cost of bidding. With all the novel ideas on YouTube to boost playback completion rates, Opel is a case in point, playing games with ads and skipping buttons, an idea that won a prize at the Cannes Advertising Festival:

 The video is transferred from Tencent video length 00'33 recommended WIFI case to watch.

The advantage of this is that Google's ads are very bearable, very story-telling, and this in turn increases the viewability of advertising, so that the user experience improves, and now you understand that the user experience is not that skip button, but through advertisers to optimize creativity to enhance, the user experience is only a by-product of skip buttons.

Well, that's why YouTube takes skipped ads, and here's a big question for many people:

Are they stupid? This isn't really! Youku, Ai Qiyi choose is the development path of video commercialization with Chinese characteristics, the specific reasons are mainly the following three points:

Each user's status is different when watching different videos, we divide these two states into "high wake" state and "low wake" state, the Spring Festival Evening ad and super bowl halftime show ads sell expensive, not only because it sees more people (Facebook at the same time the number of people online is certainly more), more importantly, the audience in watching the Spring Festival Evening, watching the Super Bowl when the state is "high wake-up" state, he has a strong desire to watch the program and desire, So this time the effect of advertising will be good, in Youku to see the variety of lulu, watch Sun Wei's series, watch Wu Jing's film is this "high wake-up" state.

"High wake-up" state results in the content of advertisers have a premium rights, sign a "芈 Monthly Biography", advertisers will be eager to sell, so do not need to sell effect ads, advertisers know the effect, in addition to buying your time, advertisers more importantly need to put its brand and deer, Sun Wei, Wu Jing linked.

That's not the case with YouTube, where videos are mostly made by users, where you won't see new Fox hits or HBO's latest episodes. Despite the rapid rise of professional video MCN institutions over the years, the overall production is becoming more and more specialized, but and professional film and television companies still have a big gap, the average video quality in the objective will be relatively mediocre.

High Wake VS Low Wake Up.

So in addition to a small number of super-red, users watching YouTube videos are a "low wake-up call" state, that is, under YouTube's extremely efficient video recommendation mechanism constantly refreshed, boring time, and because the video distribution is extremely long tail (such as the head 500 movies and TV series accounted for a much higher proportion of the total viewing time than Youtube).

Therefore, the amount of a single video playback will be much smaller than Youku, Ai Qiyi, so that brand advertisers when the pursuit of the two most important factors: quantity and quality, YouTube is not dominant, if it is also like Youku Ai Qiyi pricing sales, the most likely result is very low sales rate, ecPM is also very low.

So YouTube's strategy is that since you can't sell premium brand ads, you sell effect ads and charge for the end results to serve people.

In a word: business models determine ad models, Youku loves to sit on high-quality video resources at the top of the pyramid, pricing them without skipping them and selling them at high prices, while YouTube is a long-tailed video that attracts advertisers with skipped performance ads.

What's more, in the process Google has accumulated a large number of advertisers to endorse its bidding model, these advertisers are not only small and medium-sized enterprises, Procter and Gamble, Coca-Cola and other brand advertisers in 2006 has also been an important customer of Google, so by December 2010 Google launched Tureview ads, the choice of bidding model is logical, its advertiser size is large enough to support it to form a long enough bidding queue.

And now Youku, Tencent video accounted for the majority of advertisers are basically SKA customers, the number of few brand advertisers is difficult to support it to establish a bidding model, the premise of bidding is to have a lot of people to bid.

In contrast, the pioneers of domestic video sites, whether from Sohu to create Youku's Gu Yongxuan or from Bertelsmann to create the potato Wang Wei, have a strong media gene, and Tencent's video is originally part of Tencent's online media business group.

These media people quickly found a shortcut to seize the user's time----- give up UGC, blood copyright content, and video content ecology gradually fade away at the same time also established the earliest business model of China's video sites - in the advantages of resources to sell pre-patches, and this model continues to this day, buy a "list", the user came, advertisers also came, how good!

Today, we go to Youku, Ai Qiyi's advertising page has several pages of media quotations, this quotation and the portal quotation and television quotations are the same, in this sense, the domestic video site is an online television station.

Users spend 20 yuan to open a Tencent video membership, the most direct role is to skip advertising, if Tencent online 5 seconds can skip the button, then the difference between members and non-members is not so obvious, directly affect the attractiveness of the membership business.

You know, Youku, Ai qiyi's membership income accounts for nearly one-fifth of all its income, in the first half of 2016 alone, Ai Qiyi's membership of more than 40 million, this income if lost, directly affect its financial situation.

Youtube doesn't have this baggage, and YouTube, which started with family video clips such as Kittens and Puppies, didn't have a membership service for a long time because it really didn't have much boutique content for members to watch at the beginning of the period, and didn't start a membership business that charged $12.99 a month until it bought some big copyrighted content in 2015, and didn't do well, accounting for only 5% of total revenue in 2016. Therefore, domestic video sites from the protection of the rights and interests of members from the point of view of the degree of differentiation is also reluctant to jump the button for 5 seconds.

It must be noted that, in fact, YouTube and Youku Aiqiyi are internally unified in following the basic logic of advertising: high-quality videos are sold at a high premium price, and long-tailed traffic is auctioned for effect.

YouTube launched the Google Preferred program in Q2 in 2014, packaging the top 5% of popular channels and holding a grand annual investment to pre-sell them, which is in fact Youku, Aiqi Art mode, while Youku and Tencent Video now have their own long-tailed videos through access to DSP and performance advertising platforms to launch five-second skipped patch ads.

Avenue to Jane, the same way back!

Source: WeiXi Chat Ads.

Author: Wei Xi, Advertising Product Manager, Sina Weibo.