Why YouTube will play a bigger role in some holiday marketing budgets this year

"Connor MacDonald, CMO at wallet and accessories brand Ridge, said YouTube was a "top priority" for his brand heading into 2025. "There are only so many channels that have enough users and powerful enough or effective enough ad engines where you actually can scale to the point where you're spending tens of thousands of dollars a day," he said. And for MacDonald, one of those channels was YouTube."

"Ridge has upped its YouTube spend by 200% this year, MacDonald said. And, perhaps more importantly, McDonald said, "We had weeks in September where our YouTube spend was greater than our Meta spend, which is basically the first time we've ever done that." Not every brand is as bullish, but there are signs that more fast-growing, digitally-native brands like Ridge are making YouTube a bigger part of their advertising strategy, especially ahead of the holiday season."

"Brand and agency sources said a variety of factors have resulted in more brands embracing YouTube. They include the platform's improvements to creator monetization; its rollout of an AI-powered campaign type, similar to what Meta and other social platforms offer; decreased barriers to creative generation; and an increased interest in video and television advertising, more generally. There's also the desire among brands to diversify their advertising spending away from Meta."

Ridge increased YouTube ad spend by 200% this year and had weeks in September where YouTube spend exceeded Meta spend. YouTube is seen as a scalable channel with a powerful ad engine capable of supporting high daily spending. More digitally-native brands are allocating greater budgets to YouTube ahead of the holidays, with the number of brands actively spending on the platform doubling for some agencies over 24 months. Factors driving the shift include improved creator monetization, AI-powered campaign tools, lower creative-production barriers, and renewed interest in video and television advertising. Brands seek diversified, cost-effective channels as consumer sentiment softens.

Read at Modern Retail