YouTube returned to Sydney's Hordern Pavilion last night to spotlight creators, musicians, long-form storytelling and a formidable fanbase for this year's Brandcast.
Media agencies told AdNews that while its hard for the tech giant to innovate in its space, they were impressed with some interesting research, product announcements and the nights entertainment.
But the delivery lacked creativity, agencies also said, with content structure similar to previous years.
YouTube’s annual Brandcast event is notable in that it doesn’t just simply tell the audience what it should know about the platform for the coming year, Spark Foundry Australia national head of investment Sue-Ellen Osborn said.
"It is an immersive event that entertains, educates and takes us on a cultural journey. Which is, of course, exactly what YouTube does for consumers," Osborn said.
The headline messages were rooted in new research, which for the first time was sought through third-party measurement companies, showing that YouTube reaches 97% of online Australian adults, according to Ipsos iris.
YouTube also has the highest return on investment of all connected TV providers, outperforming the nearest competitor by 23%, with a higher ROI than linear or BVOD for 82% of brands, according to Analytic Partners.
The platform's main message was that it engages viewers in a superior "flow state" as consumers are actively curious during content, as opposed to content that is merely offered up to them.
Viewers on YouTube have the highest rates of cognitive immersion (flow) 42% vs. other video-based platforms, Instagram 23%, TikTok 31%, TV 21%, according to Kantar.
While the new research was impressive, YouTube seems to be keenly aware of the growing competition from short-form video platforms like TikTok and the advertising entry of giants like Netflix and Paramount, Orange Line general manager Aishling Farrell said.
The power of flow states resonated with a lot of media agencies.
"This creates a contrast with other entertainment platforms where engagement, though high, is more passive and 'zoned-out', potentially impacting message retention," Farrell said.
"While a compelling pitch backed by YouTube's claim of superior ROI for brands, some scepticism remains.
"Google's ability to provide both brand and search lift studies raises questions about potential bias in self-evaluation. Is Google once again marking its own homework?
"Despite this, YouTube's focus on positive, engaged viewership is a strong proposition in an increasingly competitive landscape.
"Whether this translates to definitively superior results for brands will remain a key question for media buyers."
Less than a handful of new product updates were announced, capturing the most interest was the launch of an open source media mix modeling (MMM) product MeridIan.
Demand generation campaigns powered by AI now being available via Display & Video 360 from today; and new industry partnerships with Ipsos and IAB Australia to launch YouTube - including CTV - within the Ipsos iris digital currency.
New video reach campaign non-skips was also introduced which combines 6-second bumper ads with 15-second non-skip ads. This AI-powered format is optimised for delivery on Connected TV.
YouTube focused heavily on CTV updates, instead of mobile and desktop offerings.
The deliberate silence hints at YouTube posing themselves as not only as engaging as traditional TV, but in most cases more effective in order to catch the eyes of marketers planning across all stages of the funnel, says OMD transformation director Jonathan Park.
"YouTube’s 2025 Brandcast signals an intentional shift, aligned to the growth in CTV and the streaming service industry in AUNZ," Park said.
"Non-skippable ad formats and placement rotation seem timely given YouTube’s advantage, with a mix of screen and ad formats, but also comes as a stark contrast to the Google Marketing Live event in June, which showcased a slew of AI updates.
"Whilst AI integrations move the interest needle, YouTube’s conservative approach to this update may come as marketers are now calling for greater control, visibility and the mitigation for the margin of error."
Other product announcements included creator takeovers, where an advertiser can take over a creator’s channel and roadblock all advertising.
And partnership ads powered by BrandConnect will let advertisers use authentic creator videos, repurposing existing branded content as advertising.
YouTube’s scalability and reach are undeniable, but the true test lies in its campaign effectiveness verified by external parties, says PHD group investment director Christine Chen.
"New products through creator takeovers and partnership ads sees an interesting shift to leverage their content and challenge the likes of Meta and TikTok. It remains to be seen if brands will follow suit and extend their creator strategies onto YouTube," Chen said.
"AI-powered innovations promise to drive higher reach and lower CPMs, delivering scale across CTV. However, with not much time spent on what their new measurement capabilities mean for brands, time will tell whether key data partnerships (Ipsos and IAB) as well as Meridian, YouTube’s own open-sourced MMM will pay off."
YouTube made a compelling case for why brands should collaborate with YouTube creators to reach their curious and engaged fans who are highly receptive to ads when they are in the flow, Carat national programmatic solutions lead Laurence Demousselle said.
"Google’s rollout of an open-source MMM capability could be transformative for smaller brands, providing them with improved access to measurement tools and data for more informed decision-making," Demousselle said.
"However, some marketers might question whether a conflict of interest arises when a company serves as the buyer, seller, and measurer all at once."
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