YouTube has rolled out innovative options aimed at empowering brands to effectively engage with consumers through its interactive platform, YouTube Shorts.
During a recent YouTube Ads event held this week, the tech giant presented groundbreaking format buying controls that facilitate tailored ad customization depending on the surface across YouTube’s diverse offerings. For instance, advertisers can opt to execute a video view campaign exclusively tailored for Shorts, or selectively display only horizontal creative content in-stream. Furthermore, the company is currently piloting Shorts-only purchasing options via its Demand Generation program.
“Fluid [native ad size] is a great way to enhance your reach,” commented Melissa Hsieh Nikolic, director of product management for YouTube Ads. “That’s our recommendation. However, based on extensive feedback from advertisers and rigorous market testing, we’re now encouraging brands to take control, particularly when it aligns with their specific marketing objectives.”
Exciting new ad formats are on the horizon, including unique Stickers on Shorts created from images sourced from a brand’s product feed, which will be made accessible to retailers by the end of 2024. In the coming months, YouTube is also set to introduce third-party sales lift measurement for Shorts ads, in addition to Brand Lift surveys. “YouTube boasts an unparalleled and expansive viewer reach,” Nikolic added. “[Brands] are accessing the full spectrum of standard YouTube, Connected TV (CTV), and Shorts. This comprehensive strategy highlights how our viewers are accessible and the myriad ways advertisers can connect with them.”
A significant finding from research conducted by Morgan Stanley AlphaWise reveals that four out of ten users who engage with YouTube Shorts do not participate in Instagram Reels or TikTok, presenting a unique opportunity for brands eager to connect with a distinctive audience, Nikolic emphasized.
“It’s a familiar surface compared to social platforms,” Nikolic further elaborated. “It aligns perfectly with how social marketers plan their strategies and allocate their budgets. Over 40% of YouTube Shorts users aren’t even active on these conventional social marketing platforms, yet that’s where they’re channeling their ad spend. This presents an incremental opportunity for brands to consider YouTube as a viable platform.”
YouTube Shorts achieved an astounding 70 billion daily views as of March 2024, although it still lags behind its competitor Reels, which boasts a staggering 200 billion daily views across both Facebook and Instagram. TikTok has not released comparable statistics.
Diverse content types are attracting online creators who might have previously concentrated on more traditional social media outlets. Take Drew Joiner, for example. He has accumulated a substantial following of 323,000 subscribers on his YouTube channel, where he showcases fashion videos and Shorts. Interestingly, his viewer demographic on YouTube varies from his 249,000 followers on Instagram and 294,000 on TikTok.
“My dad is an example,” Joiner remarked. “He frequently uses YouTube. For him, navigating to the Shorts tab is effortless, and he can start watching immediately. He’s not inclined to download TikTok or Instagram. I believe there are millions of individuals sharing this sentiment.” Joiner further noted that YouTube viewers tend to engage more meaningfully with the content.
“Many people visit YouTube for various reasons and often find themselves engrossed in the Shorts tab,” Joiner stated. “Plus, they’re already actively engaged in the YouTube ecosystem.”
This dynamic shifts Joiner’s perspective on content creation for YouTube Shorts. Even though the format is shorter, he finds his Shorts content to be more curated and polished compared to his other social media posts. It also offers him the flexibility to quickly respond to trending events, making it an effective medium for promoting his YouTube channel. “It’s a bit more curated, a bit more polished, a bit more looked after, you might call it versus kind of the spur-of-the-moment thing,” he analyzed. But there’s another compelling reason driving his commitment to producing additional Shorts content.
“YouTube is the most relevant media platform in the world right now,” Joiner asserted. “It’s swayed the purchasing decisions of millions of individuals. It has influenced voters during elections and reshaped how we engage with each other and consume media.”
YouTube recently exceeded analysts’ expectations regarding its Q3 2024 ad revenue.
What new advertising features have been introduced for brands on YouTube Shorts?
**Interview with Melissa Hsieh Nikolic, Director of Product Management for YouTube Ads**
**Interviewer:** Thank you for joining us today, Melissa! YouTube has recently introduced some exciting features for advertisers on its Shorts platform. Can you tell us more about these new options and what they mean for brands?
**Melissa Hsieh Nikolic:** Thank you for having me! Yes, we’re thrilled about the new options we’ve rolled out. We’re providing brands with innovative format buying controls that allow them to tailor their ads specifically for different surfaces across YouTube. For example, advertisers can run video view campaigns exclusively for Shorts or choose to display only horizontal creative content in-stream. This flexibility is crucial for brands looking to adapt their marketing strategies based on their objectives.
**Interviewer:** That sounds like a significant shift towards more customization. What feedback have you received from advertisers regarding these changes?
**Melissa Hsieh Nikolic:** The feedback has been overwhelmingly positive! Many advertisers appreciate our recommendation of the fluid native ad size to enhance reach. However, they also expressed a strong desire for more control over their campaigns. So, we’ve listened carefully and are encouraging brands to take charge of their advertising strategy in alignment with their specific goals.
**Interviewer:** You also mentioned upcoming features like Stickers on Shorts. Can you elaborate on how these will work and who they are targeted at?
**Melissa Hsieh Nikolic:** Absolutely! The Stickers will be unique, created from images in a brand’s product feed. Our goal is to make these accessible to retailers by the end of 2024, providing them with a whimsical and engaging way to connect with viewers on Shorts. These interactive elements can significantly enhance viewer engagement and drive brand awareness.
**Interviewer:** With the growing audience on YouTube Shorts, how does it compare to platforms like Instagram and TikTok in terms of user engagement?
**Melissa Hsieh Nikolic:** That’s a great question. Our research indicates that about 40% of YouTube Shorts users do not utilize Instagram Reels or TikTok. This represents a unique opportunity for brands to reach an audience that might be overlooked on traditional social media. YouTube Shorts is familiar territory for many, aligning well with how social marketers plan their strategies.
**Interviewer:** You mentioned the impressive 70 billion daily views on Shorts. Given the competitive landscape, how do you envision YouTube’s role evolving in the short-form video sector?
**Melissa Hsieh Nikolic:** Indeed, while we’re seeing robust growth with 70 billion daily views, we recognize that we have room to grow in comparison to platforms like Reels. However, the expansive reach of YouTube, when combined with our comprehensive strategy that includes Connected TV (CTV) and standard YouTube, positions us uniquely in the marketplace. We aim to continue diversifying the content and advertising options available, ultimately enhancing engagement for both viewers and brands.
**Interviewer:** Thank you, Melissa, for these insights. It’s exciting to hear how YouTube is innovating within the Shorts platform and providing brands with new avenues for engagement.
**Melissa Hsieh Nikolic:** Thank you for having me! We’re looking forward to seeing how brands leverage these new features on YouTube Shorts.
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This interview highlights the key points around YouTube’s introduction of new ad formats and features for advertisers on Shorts, emphasizing the platform’s potential for brands seeking to engage with a distinct audience.
