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YouTube to raise ad prices on premium ad inventory in 2018

08/12/2017
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YouTube plans to raise the prices it charges advertisers on “reserved” inventory starting next month and the news has come up after a string of brand safety issues.

As per a report by Business Insider, the video platform plans to increase ad rates on reserved inventory by as much as 20% in 2018. That’s the premium inventory that advertisers can buy on a fixed CPM or CPD (cost-per-day) basis in advance rather than via real-time auction bidding.

Reserved inventory includes masthead units on the home page and skippable and non-skippable pre-roll video ads.

The price increase for premium channels comes as big marketers scramble to make sure their ads are presented against web-video content that’s been vetted by professionals. The ad-price increase is for so-called reserved inventory – that is ad space that is purchased ahead of time, in the same way it is for a television broadcast. These reserved placements guarantee an advertiser prominent placement and specific programming.

Other ads, the kind you can skip past as a viewer, are bought using technology tools, and advertisers using that risk having their promotion appear against content that could be considered by some viewers as racist, misogynistic, or just plain weird.

Challenges remain, as illustrated last month when The Times of London reported ads from major brands such as Adidas, Amazon and eBay were seen running on videos posted by children that garnered sexually predatory comments. In October, YouTube removed RT.com from the list of channels included in the company’s Google Preferred advertising program on its most popular channels.

The price change will of course impact advertisers that run ads on YouTube. But it will also affect the many third parties that sell ads on the site.

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