YouTube Drops Price for Upfront Packages to Lure TV Dollars

ouTube is taking a novel approach to winning TV ad dollars during this year's Upfront season: lowering prices.

Google's video platform -- the world's biggest -- isn't exactly lowering ad rates, the cost-per-thousand that advertisers pay, but it is re-thinking the way it structures up front ad deals for premium content on the eve of its "Brandcast," a big show for marketers and agencies in Manhattan next week.

Last year, fresh off its initial $100 million investment in original "channels," YouTube came out with ad packages that were charitably described as "aggressive." In order to sponsor one of the new channels, advertisers were asked to make commitments to spend in excess of $10 million across YouTube. A music package, for example, was listed at $62 million, according to documents obtained by Ad Age. YouTube did get several big marketers to commit in the lower 8-figures includingUnilever, Toyota and GM.