Friday, May 25, 2018

Vevo to shift focus back to selling ads on YouTube | UNLIMITED | CMU


Vevo has announced that it is shutting down its own proprietary apps in order to re-focus on the company’s original mission. Which means selling advertising to brands to go alongside videos on the YouTube channels it manages on behalf of artists and labels.

In a statement yesterday, the company said: “At Vevo, our objective is to grow the commercial and promotional value of music videos, fostering deep connections between artists and fans. To be most effective in achieving those goals, we will phase out elements of our owned and operated platforms”.=

“Going forward, Vevo will remain focused on engaging the biggest audiences and pursuing growth opportunities”, it continued. “Our catalogue of premium music videos and original content will continue to reach a growing audience on YouTube and we are exploring ways to work with additional platforms to further expand access to Vevo’s content”.

Originally launched in 2009 as a joint venture between Universal Music and Sony Music, Vevo’s original aim was to attract higher-paying advertisers to official music content on YouTube, having agreed a deal with Google that would allow it to control advertising on any YouTube channels it managed.

The logic was that by only selling ads to go on official artist or label channels, and therefore being able to guarantee that those ads would always appear alongside official music videos, Vevo should be able to charge a premium, compared to what Google was charging for ads that also appeared alongside user-generated content.

Although initially focused on Universal and Sony output, the Vevo service was rolled out so that other labels and distributers could opt to have Vevo-managed channels on YouTube and, in theory, also benefit from the better advertising rates.

Despite the initial focus on YouTube – and still being best known by consumers as a logo that appears on YouTube channels and videos – over time Vevo worked with other websites, launched its own apps and platforms, and also moved into making original content.

Its new statement continues: “We will continue to be the primary seller of Vevo-specific advertising on all distribution platforms – including the sponsorship of video premieres. Vevo offers unique selling propositions for buyers to purchase national, local and multi-cultural audiences at scale, in brand-safe environments, with guaranteed reach and all of the addressability of IP-delivered inventory”.

Despite the closure of its own platforms, it will still continue to develop some original content, it adds, saying: “Vevo will invest in original content including our flagship dscvr and LIFT emerging artist programmes, as well as new formats that we plan to roll out shortly. Vevo’s unique programming and cross promotion of content helps artists at every stage of their careers to harness the power of music videos to reach new, global audiences”.

“Connecting artists to new audiences, while helping tell their stories, and growing an advertising-based revenue stream that benefits all of our partners, are key considerations that drive how we develop and adapt our business”, it concluded, confirming the shift back to its original and core focus. “Belief in the power of the music videos will always remain at Vevo’s core”.


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