As brands increase their investments in short-video platforms to drive conversions, skepticism is growing — especially toward YouTube ‘Shorts.’ Marketers tell Storyboard18 that it could be a ‘natural’ reaction to any platform in its early stages, especially when concerns about content safety arise. Although these apprehensions come at a time when YouTube is ramping up its efforts to promote its short-form video feature, through aggressive advertising across various platforms, including print, with a clear focus on capturing the attention of marketers and brand managers.
Beyond competing with its formidable rival — Meta’s Instagram Reels, which has quickly taken the lead in the short-video space — YouTube ‘Shorts’ is also facing scrutiny from advertisers over its effectiveness and brand safety.
Among the cautious advertisers is Adityan Kayalakal, Head of Brand Marketing at Veera, who points out that the surge in low-quality content on the platform has marketers concerned about their brands being associated with it.
That apart, “…one would see a lot of irrelevant ads, or ads usually using their horizontal format on vertical format itself, which is not very effective. Moreover, YouTube has never been the cheapest place to advertise yourself, so one will associate it with a certain level of quality. But now if you’ve taken quality away from it, then why am I putting my ad in a place where I get something like MX player-like content? That’s not my expectation from YouTube fundamentally.
When a brand is already splitting budgets in so many places, “there is a fear of doing it on a platform where you are not so sure if the guardrails exist; technically, Instagram is a very similar platform, but we feel that we’re better protected on that platform today,” he shares.
Another marketer, on condition of anonymity, shares that a large amount of sensitive content floating around YouTube ‘Shorts’ that make marketers conscious before placing their brands on such platforms.
“Placement of brands around content which spreads religious hatred, homophobia, sexist content and politically charged rhetoric, generates a lot of negativity.”
There is another challenge with ‘Shorts’ – which is the uncertainty of how many people are actually clicking through (the ads/ ad banners via content), adds Kayalakal. If users are clicking through irrelevant content, then the ad is a complete mismatch for what they are consuming and therefore they are taking it out of existence before they even complete three seconds on it.
Rumi Ambastha, VP-Marketing at Mila Beauté says that she is still ‘waiting and watching’ the space. While she continues to allocate 50% of the digital spends on Meta’s Reels, she remains apprehensive of ‘Shorts’ for various reasons.
According to her, YouTube Shorts being the last entrant into the scheme has not yet proved itself to be an effective platform to give the desired result. Additionally, bots pose a huge problem of escalating false numbers and can drain limited spends.
“I see a number of marketers right now be a bit skeptical about the efficacy of ‘Shorts’. Too much of sensitive content floating around and one has to be very careful these days more than ever.”
She has a point about the ‘sensitive data’ circulating, especially considering that the Ministry of Information and Broadcasting recently cautioned digital platforms against publishing obscene or pornographic content. This warning came in the wake of the India’s Got Latent controversy, where creators faced Supreme Court backlash for making obscene remarks on a YouTube show.
Advertisers’ skepticism around YouTube ‘Shorts’ can also be considered as a natural reaction to any platform in its early stages, especially when concerns about content safety arise. But this is a question of time, not permanence, notes Rutu Mody Kamdar – Founder of Jigsaw Brand Consultants.
“As YouTube strengthens its moderation and refines its ad targeting, brands will follow. The platform’s scale and Google’s ecosystem are too significant to ignore, and advertisers will eventually find ways to navigate these initial concerns”, Kamdar highlights.
Brands like Myntra and Asian Paints are investing in YouTube ‘Shorts’. Real estate brands and early-age start-ups too are betting on the platform.
“Ad spend decisions ultimately hinge on ROI, which takes time to evaluate,” adds Smita Khanna, COO, Newton Consulting.
In terms of the ad rates, YouTube Shorts’ CPMs are around Rs 200-Rs 400 per 1,000 impressions, and Instagram’s ‘Reels’ is around Rs 150- Rs 300 per 1,000 impressions but the latter boasts of providing brands with the deepest user engagements. Other homegrown platforms like Moj/Triller/Chingari’s CPMs range between Rs 50- Rs 100 per 1,000 impressions.
YouTube Shorts faces the perennial challenge of a latecomer in an already competitive market. Instagram, with its established dominance, consumer trust, and demonstrated return on investment, maintains a significant edge.
According to a report by Redseer Strategy Consultants, homegrown short-video platforms generated an estimated $90-100 million in advertising revenue in FY24, securing a modest but growing 1-1.5% share of the country’s total digital ad spend. These platforms have now surpassed $200 million in revenue and collectively attract nearly 250 million monthly users. Since the mid-2020 ban on TikTok, Indian short-video apps have witnessed a more than threefold increase in daily active users.
In a bid to capture a share of this expanding market, YouTube has extended the maximum length of its Shorts from 60 seconds to three minutes. The platform is also leveraging users’ “pause moments” to optimize ad placements, aiming to strengthen its appeal among advertisers and further establish itself in the short-form video space.
But the success of these hinges on whether YouTube can demonstrate a sustained commitment to brand safety, Khanna concludes.