Analyst: YouTube Video Has 'Profound Long-Term Implications for the Traditional Media Ecosystem' Deadline
A wildly successful YouTube video could be a game changer for the media business, Deadline.com reports, citing BTIG analyst Richard Greenfield.
Commenting on the impact of the “Gangnam Style” dance video by South Korean pop artist Psy, Greenfield notes that the clip has attracted more than 430 million views since it appeared in July -- making it the video site’s ninth-most-watched clip.
“It’s sure to end up much higher; its views are growing at a rate of about 10M a day,” the Deadline piece notes. “To give that some context, Greenfield notes that each episode of CBS’s ‘NCIS’ -- last season’s most watched regular series -- attracted an average of about 22M viewers in the seven days after it aired while the Super Bowl attracted more than 168M. Relax, Greenfield doesn’t claim that viewers devote the same time and commitment to a YouTube video as they do to TV shows.
“But he observes that ‘Gangnam Style’ illustrates the ‘tremendous opportunity’ for advertisers -- and, by extension, for content creators -- on YouTube.”
Greenfield notes that “Gangnam Style” has been especially effective at reaching viewers 12 to 17, and males up to age 24 -- traditionally challenging demos for advertisers to reach.
“And Greenfield notes that several have already caught on,” the piece reports. “He has seen pre-roll ads on ‘Gangnam Style’ from Capcom, Cartoon Network, Chevy, EA, Fox’s ‘Life of Pi,’ Green Mountain, Home Depot, Intel, LG, Microsoft, Nike, Nordstrom, Samsung, and Visit Greece.
“What’s more, the analyst says that he noticed something that ‘we had never seen on YouTube before’: He saw a pre-roll ad from a local furniture store, Gramercy Vintage Furniture.”
Greenfield adds: “We suspect locally targeted ads have a very significant CPM.”
Here’s the original “Gangnam Style” video: