Commentary

YouTube's Untapped Potential: Why Do Brands Overlook Digital Celebs?

I'm having trouble getting my brain around the fact that YouTube is nearly a decade old, we are soaring into the Golden Age of branded content, and  still more hasn't been done to exploit this incredible platform's possibilities.

Here it is 2015, and so few marketers have come to the realization that they should be snapping up YouTube's native stars: the fashionistas, video game commenters and funny people who bring in more eyeballs -- especially those super-lucrative 18- to 24-year-old ones -- than “Modern Family” or “Girls” do.

There have been notable exceptions. Aeropostale (with Bethany Mota) and L’oreal (with Michelle Phan) are currently among the few who seem to have recognized the value of such homegrown YouTube stars, as Brendan Behan, who has advised major corporations on YouTube strategy, has pointed out. Both brands are doing extremely well with those respective deals.

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But there's a reluctance to sign up those who gained celebrity via the YouTube revolution, despite the fact that Millenials invest these celebs with tremendous credibility and entertainment value. Of course, there are brands such Red Bull featuring its “sponsored athletes with dedicated shows” such as Ryan Sheckler’s “Sheckler Sessions” and Jamie O’Brien’s “Who is Job?”  

Still other seemingly savvy brands have spent millions trying to do likewise and failed, leaving me scratching my head why marketers don't direct those dollars for key digital celebrity endorsements the way they do elsewhere in the entertainment and sports world. 

Survey after survey of media buyers say they plan to ramp up their branded content spend in the coming year.  Industry estimates are putting the growth in spending in the sector north of 15%, and it could easily climb higher. Time to realize that 10 years in, the best YouTube creators are doing a helluva lot more than posting videos of mad-dancing cats and psychedelic toddlers. Just peruse the list of Top 25 YouTube creators, see who is reaching your market, and get ready to write a check.

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