YouTube’s New Ad Model: Channel Sponsorships

YouTube is rolling out a new ad model option for 96 YouTube Channels. Rather than selling television style ads to certain demographics, they will now sell full sponsorship for certain YouTube channels. The ads include display, overlay and pre-roll; so basically they will cover the entire page with an ad preceding the video. The annual price tag for sponsorship is around $4 to $10 million. YouTube will cover cost of production for certain channel producers, and the producers themselves will share equally in advertising revenue, once YouTube recoups the original investment.

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