Amazon is conducting a lot of meetings to launch projects to attract more advertisers on its video platforms and become YouTube’s real counterpart.
Amazon meetings aimed to find new solutions and initiatives to better exploit the potential of advertisers. Many people think that Amazon will be more open to providing advertisers with data about users, such as what program they are watching or what they are doing online.
Some review Amazon will launch a program that allows companies to collaborate with video producers to create sponsored content (containing advertising). And of course, Amazon will enjoy commissions in those cooperation missions.
In addition, Amazon also talked with many technology companies to find solutions to prevent inappropriate content from appearing in advertisements. This issue is called the Content Adjacency, which emerged after a series of ads on YouTube and other Google platforms that contained fascism and terrorism in March this year.
According to eMarketer, online video advertising is booming and becoming a new trend in the world. In the United States, the profit that this type of advertising has achieved is $ 13.23 billion this year. YouTube is one of the most benefited services and will account for 21.7% of the total revenue from video advertising.
However, advertisers are constantly looking for new platforms to increase competition among companies, especially those that are large enough to reach YouTube.
According to data in the first quarter of 2016 report, Amazon has about 310 million monthly service users, still far behind YouTube’s 1.5 million monthly figures. However, if Amazon agrees to cooperate and disclose to the advertiser about their customers’ online preferences and their shopping habits, that could create a desirable turning point in this race, simultaneously. will disrupt the entire existing ecosystem as well as directly threaten YouTube’s unique position.
Currently, Amazon allows users to upload videos through Amazon Video Direct (AVD). Then, other users can buy or rent these videos again, or they can watch them for free with ads. In addition, Amazon also holds an important card game called Twitch – a video platform that allows users to livestream, store content so that they can watch it whenever they want.
Although AVD’s current advertising program is fully capable of comparing with YouTube, advertisers still have not really trusted the service that Amazon offers. Media executives said that unlike YouTube, Amazon did not specify information about ad performance (including return on investment). In addition, the company does not allow third parties to participate in checking the advertising process. Not to mention advertising on AVD is more expensive than YouTube.
From the above reasons, many companies believe that YouTube will continue to be a more appropriate video platform to advertise. But if Amazon is willing to provide more user data to advertisers and allow outside analysts to use their information, they will become a formidable force that YouTube must be wary of. Amazon has not yet spoken up about this issue.
YouTube updates important features to compete with Facebook and Amazon
YouTube’s Live service has received a major update that helps it compete fairly with similar services offered by Facebook and Amazon.
Here are three major updates being implemented for YouTube Live:
– Ability to stream anything you want, directly from your iPhone or iPad, via the YouTube application itself.
– Significantly reduces the delay between the stream and the viewer, a “low latency mode” provides a delay of only a few seconds.
– Manage comments more easily with the ability to pause and censor as you like. You can also assign comment moderation to others.
These updates are especially important at a time when YouTube Live is trying to compete with Amazon’s Twitch service. Twitch is a live stream service primarily focused on live games. According to a report in 2015, Twitch has more than 1.5 million people providing content and more than 100 million monthly visitors.
YouTube is very popular in the form of a tool to save and produce game content but is not strong in live stream. Amazon’s Twitch currently dominates this segment and Facebook Live is also growing in that direction.
The competitive advantage of Facebook’s live service is its large user base. Facebook users are larger than Twitch and YouTube users hundreds of millions. Every month there are 2 billion Facebook users. Only a small success of Facebook, such as cooperating with a major game provider, can also make Amazon and YouTube miserable.
However, new content is what attracts viewers to use these services. For great content, YouTube has taken smart steps in updating YouTube Live to compete more aggressively with services like Twitch. The more friendly the content creators are, the more streamer they have, the more opportunities they will develop in the ongoing live stream battle.