Youtube - The new advertising hotspot

In their quest to connect with the next generation of Toyota Corolla buyers , Toyota has embarked on a strategy to advertise on Youtube. With viewers migrating online and Youtube accounting for roughly a third of all online video watching, the portal is a new advertising hotspot. Toyota has set up 2 channels on the site and has invited creative users/companies to post 2-3 minute comic sketches with some exciting prize money on offer. The aim is to involve the user as part of the branding/advertising activity. The idea is fantastic although the concept must be administered very carefully. In the digital world, with ruthless feedback, companies can either hit the bulls eye or be relegated to an embarassing position through negative word of mouth publicity.

Coming back to the channels, the new Corolla features prominently on the channel's homepage, with links to Toyota's site and other Toyota created video spots that promote the 2009 model. But fact is, when it comes to user created videos, the Toyota Corolla is nowhere to be found. There are videos with guys driving a Honda, and another with some dudes fighting over who will sit on the front seat of their BMW. If the online coversation is about the videos and Toyota is not a part of those videos, then people don't talk about Toyota. Most viewers would simply watch the videos and not visit Toyota's channel home page which actually promotes the car.

However, this form of advertising represents a true shift toward involving the customer as part of creating the experience. Previously, advertisers used to figure out what customers wanted to see. But in the online environment, customers are participants.

Another plus is in terms of market research. Companies spend a lot of time trying to learn how customers relate with their products. Enaging customers in this manner is a lot like holding focus groups - companies might get feedback about their products and just might learn something.

It is clear that advertisers are not moving online as fast as consumers are. The potential gains could be huge. Do we see online advertising disrupting traditional advertising anytime soon? Only time with tell.