Youtube gets General Motors and Toyota to advertise on premium channels

Article by Anita Panait, on February 29, 2012

YouTube's $100 million experiment in original content has attracted a number of big-time companies who are willing to advertise on the video streaming site for as much as $62 million. Yes, Youtube has become very confident it could attract hordes of viewers by delivering a TV-like appointment viewing though its 96 premium “channels,” that it has placed a very expensive price tag on and dangled in front of large companies. 

Many of them took the bait and signed up to advertise for some channels that they think would be viewed by their target customers.

These companies include: Toyota, which is supporting a number of Youtube channels targeted at women like "Cafe Mom," "Kin Community" and "Mom's View"; General Motors, which recently agreed to sponsor Red Bull's action sports channel and some automotive-focused channels; and Unilever, which is backing "Young Hollywood Network," founded by YouTube star R.J. Williams. 

Other companies that signed up to sponsor some new Youtube channels are Chrysler, AT&T and Lowes. Youtube started talking with companies and brands as well as agencies in November 2011, to persuade them to advertise for around $5 million to $10 million.

Under the deal, an advertiser could get exclusivity in the premium channels after making a huge investment across the rest of YouTube. Other terms of the deal vary, but Youtube is guaranteeing that 20 percent of the advertisements would appear in the new channels, and the rest will appear on other videos on the site.

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