YouTube is planning to remove the option to “skip to videos” to appease advertisers. How should YouTube price this option to advertisers?

Question

Accepted Answer

Advertisers want to remove 'skip to video' option on Youtube. How should it be priced?

Pricing should be based on the length of the video.
Advertisers should pay more for longer videos.
Pricing should also consider the popularity of the video.
Advertisers should pay more for popular videos.
Auction-based pricing could be used to determine the price.
Advertisers could bid on the price they are willing to pay for the option.
Pricing should be transparent and clearly communicated to advertisers.

Accepted Answer

Pick one of the 3 pricing strategies. Cost based, competitor based, value based. Value based almost always works the best as it appropriates max value from consumer.

Skip feature: Understand why that feature exists (consumer and advertiser end) -> If advertisers buy that option, how does it affect user experience -> how does it cost Youtube? (User time spent, engagement, ad revenue lost/won, fixed costs etc.) -> convert non-monetary metrics in to $ and provide an estimate -> alternate sources of revenue through the feature which would offset the costs for advertisers.

YouTube is planning to remove the option to “skip to videos” to appease advertisers. How should YouTube price this option to advertisers?

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