An alliance is brewing to pool their video advertising space against tech giants.
Prominent digital publishers are competing against the YouTube-owned, Alphabet and other digital platforms. Buzzfeed, Group Nine Media, and Insider Inc. are forming an alliance to sell video advertising on all their websites, apps, and YouTube channels. A representative from Discovery Inc confirmed that they’re also in the talks of joining the group. The members of the group will share the ad revenue based on the number of ads delivered.
The yet to be named group has a combined 100 million subscribers on YouTube and has more than 1 billion views on their websites and apps.
YouTube dominates digital video advertising
YouTube’s revenue is huge on its own, however with the addition of Alphabet Inc, the video giant ads over $15 billion in its annual ad revenue. Other noteworthy competitors in video advertising are Facebook, Amazon, and Snap.
The fight for larger ad deals
Clients are looking for a more brand-safe environment, however, they need the scale they get on the platforms. Christa Carone, Group Nine Media President told the Wall Street Journal. This alliance is expected to help them get bigger ad deals that they don’t normally get on their own.
This alliance is beneficial for investors and advertisers as it ensures they buy ads that will appear to trusted content. This means that their ads will never appear to questionable contents from platforms like YouTube.
In 2018, three online news publications in the UK banded together to form Ozone Project. They also aimed to sell space across their sites. Broadcasters also made alliances including Channel 4’s multi-year deal with Sky’s advertising.
What happens next?
The alliance isn’t expected to dent YouTube’s budget, however, it’s a great idea to simplify the buying process across publishers. The group will need to follow a stronger strategy for the partnership to work. Advertisers suggest that brand safety pitch is an appealing idea that they can explore further.
With the tech giants on the rise, forming alliances seems to be a great plan for smaller companies to be able to stand a fair chance. Media companies are merging because of the stiff competition and no matter how difficult the concept is, it’s a good strategy as it exposes the groups to wider audience and deals.