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Introduction
In an era where ad blockers are a common part of the internet user’s toolkit, YouTube is taking a bold stance. The video-sharing platform is currently conducting a global experiment targeting users who employ ad blockers, urging them to either allow ads on YouTube or subscribe to YouTube Premium. This move has sparked a significant amount of discussion and controversy, with potential implications for small and medium-sized enterprises (SMEs) that rely on YouTube as a marketing platform.
According to Backlinko and Hootsuite, as of 2023, 42.7% of internet users worldwide report using an ad blocker, with the technology expanding beyond desktop to mobile devices and tablets. This usage is most common among internet users between 16 and 24 years old, with 46.2% of users worldwide admitting to using ad blockers. In Canada, that number figures at 41.3%. In the United States, 27% of internet users block ads, while in the UK, 36% of internet users use ad blockers.
Given these statistics, YouTube’s decision to limit the use of ad blockers could have a significant impact on a large portion of its user base. This is particularly relevant for SMEs, as their target audience may be among those who regularly use ad blockers.
It’s important however to take into consideration the demographic and psychographic characteristics of the users who employ ad blockers, in order to understand exactly what implications YouTube’s new policy will have on the marketing landscape.
As we delve into these implications, we’ll consider the potential effects on ad visibility, user experience, and the broader digital marketing landscape.
YouTube’s Three-Strikes Policy
As part of the experiment, YouTube is testing a three-strikes policy. Users who continue to use ad blockers will be limited to watching just three videos. After that, they will be barred from watching videos unless they disable their ad blocker or whitelist YouTube. This policy, while seemingly straightforward, has had its hiccups.
While testing adblockers to evaluate this mechanism for ourselves at Sanctus, we noticed that at least in the beginning, even despite disabling ad blockers, we were prevented from accessing our YouTube account. No doubt we were not alone in this experience, and this again speaks to bumps on the road in terms of skilfully executing this new decision on the part of YouTube – a move that could potentially further annoy users and push them away from or make them consider moving away from the platform.
As of the time of this writing, YouTube still falsely flags browsers that have ad blockers but which are disabled on YouTube, as though they were enabled. Users must manually refresh the page each time they click in to watch a video, which is a major annoyance that specifically damages the user experience both for YouTube and the Google Chrome browser.
User Backlash and Criticism
This new policy move by YouTube has been met with backlash from users and critics who argue that it infringes on their rights to control their browsing experience. Some argue that it could lead to reputational risk for YouTube and drive users to other platforms. This is a critical consideration for SMEs. If your target audience is among those disgruntled by YouTube’s new policy, it could affect the reach and effectiveness of your marketing campaigns on the platform.
Impact on Ad Revenue and YouTube Premium
YouTube’s decision is seen as a strategic move to bolster its ad revenue, which is a significant part of Google’s income. In 2022, advertising made up a substantial 80.2% of Google’s annual revenue. However, this decision could potentially backfire if it leads to a significant number of users leaving the platform due to the ad-blocking restrictions.
On the other hand, the move is also seen as a way for YouTube to push users towards its Premium subscription service, which offers an ad-free viewing experience. If a significant number of users switch to YouTube Premium, it could reduce the audience for ads. However, it could also open up new marketing opportunities, such as partnerships or sponsored content within premium content.
Implications for Businesses and Marketers
The new policy could have a significant impact on businesses and marketers. On one hand, if YouTube successfully implements this policy, it could increase the visibility of ads on the platform. Users who previously used ad blockers would now see ads, potentially increasing the reach of marketing campaigns. This could make YouTube an even more attractive platform for advertisers.
However, if the policy leads to a significant backlash and users start leaving the platform or reducing their usage, it could decrease the potential audience for marketers. This could make advertising on YouTube less effective and potentially less cost-efficient.
The Importance of Ad Quality
With users being forced to watch ads, the quality of these ads becomes even more critical. High-quality, engaging ads could be more important than ever. This could push marketers to improve their ad content, making it more engaging and less likely to be perceived as an interruption.
Considering Alternative Platforms
If the policy leads to a significant backlash, alternative video platforms could benefit. Marketers might need to consider diversifying their video marketing across multiple platforms. This could involve exploring platforms like Lbry or Odysee, Vimeo, Dailymotion, or even social media platforms that support video content like TikTok, Facebook and Instagram.
Self-Hosting or Developing Your Own Platform
For businesses with the resources, this might be a wake-up call to consider self-hosting their videos or developing their own platform. This would give them more control over the user experience and potentially allow them to avoid issues like this. However, it would also come with its own challenges, such as development costs and the need to drive traffic to the new platform.
Actionable tips
With these new changes in the digital landscape, here are a few actionable tips that can help:
- Improve Ad Quality: With users being forced to watch ads, the quality of these ads becomes even more critical. High-quality, engaging ads could be more important than ever. This could push marketers to improve their ad content, making it more engaging and less likely to be perceived as an interruption.
- Diversify Platforms: If the policy leads to a significant backlash, alternative video platforms could benefit. Marketers might need to consider diversifying their video marketing across multiple platforms. This could involve exploring platforms like Lbry or Odysee, Vimeo, Dailymotion, or even social media platforms that support video content like TikTok, Facebook, and Instagram.
- Consider Professional Help: Managing these changes can be complex and time-consuming. Hiring a professional agency like Sanctus can help navigate these challenges and optimize your marketing strategies. We have the expertise to handle these changes and can help ensure your business stays ahead of the curve.
Resources
At Sanctus, we understand the importance of having control over your content. That’s why we offer services to develop self-hosted video sharing platforms for businesses. This allows you to deliver your video marketing content from your own platform, avoiding potential issues with third-party platforms like YouTube.
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Free Consultation
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Conclusion
In conclusion, while YouTube’s move could potentially increase ad visibility, it also introduces several uncertainties. Businesses and marketers will need to closely monitor the situation and be ready to adapt their strategies accordingly. Whether it’s improving ad quality, diversifying platforms, or even considering self-hosting, the key is to stay flexible and responsive to the changing digital marketing landscape. And remember, you don’t have to navigate these changes alone. Sanctus is here to help.
