YouTube has introduced a new 6 second video ad format dubbed Bumper ads, to increase the reach and frequency of ads on mobile devices. According to Google, Bumper ads drove recall, awareness and consideration values. The ads will be sold through Google AdWords on a cost per thousand impression (CPM) basis beginning next month. Since the ads will be just six seconds long, consumers are unlikely to have the option to skip them.

It’s worth noting that YouTube CEO Susan Wojcicki said more than half of YouTube’s watch time happens on mobile devices, in July 2015. She had also mentioned that the number of advertisers running video ads was up more than 40% over 2014.

Google’s shift to mobile and programmatic
Google’s Q1 2016 earnings report show that the company has been spending a lot more on Traffic Acquisition, signalling a clear shift towards mobile and programmatic, both of which carry high Traffic Acquisition Cost. In September 2015, the company had also launched a few new features for AdWords, including the ability for advertisers to target customers by their email ID’s, Similar Audiences and Universal App Campaigns.

Advertisement on YouTube
– In October last year, YouTube said that it would start serving users shopping ads based on the items shown in the videos themselves.
– In May 2015, YouTube added buy buttons to TrueView ads (as opposed to inside videos), which would let users click to buy stuff after being redirected to the product page.

Conflict between YouTube and content creators
Early last year, YouTube had banned the use of graphical title cards, which includes the use of sponsor logos and product branding in videos, unless the sponsor pays Google to advertise on a particular channel. This move directly affected multi-channel networks and YouTube Stars as their sponsors had to start paying Google a cut for the use of their logos in video overlays.

Other developments at YouTube

– Last month, YouTube revealed that along with its content partners Culture Machine, Only Much Louder (OML), Qyuki and The Viral Fever (TVF), they will be launching original properties such as Beauty Hunt, Comedy Hunt and #LaughterGames, a comedy web series from multiple creators including East India Comedy.

Earlier this month, it was reported that YouTube is also looking to develop musical talent through an initiative called “Foundry”. According to the report, YouTube is in talks with peers in the music industry to discuss closer collaboration. So far, in the meetings, YouTube has discussed better ways to promote artists through music videos.