YouTube, Buoyed by Brands Ads, Seeks Growth in Direct Response Ads
04 Febrero 2020 - 05:59PM
Noticias Dow Jones
By Patience Haggin
YouTube's ad revenue grew 31% year-on-year in 2019, hitting $4.7
billion, the company disclosed in a Monday earnings call as its
owner Alphabet Inc. pulled back the veil on its digital-video
platform for the first time.
That growth was "driven by substantial growth in direct and
response and ongoing healthy growth in brand advertising, which
remains the largest component," explained Alphabet senior vice
president and chief financial officer Ruth Porat.
The distinction lies in the purpose of the ad--and often its
potential interactive features. Brand ads are designed to establish
a relationship between the brand and its consumers. Direct-response
ads are designed to prompt an immediate action.
"In direct response, we're letting brands insert a tailored call
to action in a video ad, such as signing up for a newsletter or
scheduling an appointment or downloading an app or booking a trip,
things of those sort," Ms. Porat explained.
"We see substantial, continuing opportunity in direct response
as well as with brand advertisers," Ms. Porat added.
Write to Patience Haggin at patience.haggin@wsj.com
(END) Dow Jones Newswires
February 04, 2020 18:44 ET (23:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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