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 The TV business did not die; far from it. Instead, data compiled
by ad tracking firm MediaRadar at Reuters' request shows some
advertisers are spending more on television networks' online
properties and less on Alphabet Inc's video service. The data
may partially explain why Google's parent had its slowest
quarterly revenue growth in three years.
This week, the big U.S. TV networks plan to drive the knife
further into digital rivals, repeating the phrase "brand safety"
and exploiting YouTube's struggle to curb unsuitable content,
during the upfront ad sales period when TV networks preview the
fall season for advertisers.
On stage and in private meetings, executives from Comcast Corp's
NBCUniversal, CBS Corp and Viacom Inc say they are pitching
themselves as one-stop shops because they have viewers on TV,
their own streaming services and YouTube.
"Across every screen, clients can rest easy knowing that their
message is in a pristine, premium environment. And that's
something other platforms just can't guarantee," said Trevor
Fellows, executive vice president of digital sales and strategy
for NBCUniversal.
Out of a sample of 240 companies that advertised on YouTube
during last year's first quarter and on TV networks' online
services in this year's first quarter, 46 percent spent less on
YouTube than a year ago and more on networks' online properties,
according to MediaRadar. These companies include major U.S.
advertisers Pfizer Inc, Verizon Communications Inc and Adidas.
Only 8 percent of advertisers spent more on YouTube and less on
the network properties, MediaRadar found.
Pfizer, Adidas and Verizon declined comment on their ad
spending. YouTube declined to comment for this article, but said
this month in its presentation to advertisers that its growing
audience is unrivaled by TV.
'EMPIRE' STRIKES BACK
YouTube's struggle to clean up content has driven advertisers to
networks including CBS and Viacom, according to people involved
in the ad businesses at each of the companies speaking on the
condition of anonymity.
One example is "Carpool Karaoke," a segment from "The Late Late
Show with James Corden" on CBS which has performed well on
YouTube, said one CBS executive.
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CBS can sell YouTube ads during its clips on YouTube, and ensure a
brand-safe environment, the executive said.
YouTube keeps about 45 percent of ad revenue from user videos, but
generally takes a lower cut from content uploaded by TV networks.
An executive at a major ad buying agency said networks this year are
touting their strength in high quality content across multiple
screens, a significant departure from trying to compete with YouTube
and Facebook by talking about tech.
"It's like return of the empire in some ways," the buyer said.
A second major U.S. ad buying firm said its annual spending on
YouTube will grow at a slower rate for the first time this year.
The networks have made strides online in allowing advertisers to
direct ads to certain demographics, according to network sources.
CBS is able to match advertisers with viewers based on their reading
history at its CNET tech news website, the executive said.
But the big selling point for networks is the bulk of TV programming
is vetted for decorum standards.
YouTube screens all videos available for advertising in Google
Preferred, a popular batch of content set aside for advertisers
making big spending commitments.
The selection represents a only fraction of advertising
opportunities on YouTube. Still, that fraction appears to be growing
according to YouTube data showing users spent 30 percent more time
watching Google Preferred videos during last year's fourth quarter
than a year earlier.
This month, YouTube announced Google Preferred content also must
have high production quality and be frequently watched on a TV,
making its package more comparable to TV networks' offerings.
(Reporting by Paresh Dave in San Francisco and Sheila Dang in New
York; editing by Kenneth Li, Greg Mitchell and David Gregorio)
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