Advertising on YouTube
Monitor your YouTube video ads and measure the impact of your advertising and see exactly how many people have seen your ads.
YouTube is the world’s 2nd largest search engine and has been owned by Google since 2006. As an advertiser on YouTube you can target your ad to the right audience, and at the same time you can see exactly how many times your ad has been shown, and how much of it has been watched so you only pay for full viewing of your ad.
How does advertising work on YouTube?
If you’ve spent just a few minutes on YouTube, you’ve probably seen advertisements. There are different ad formats on YouTube, but the most commonly used format is called TrueView – these are the ads that sometimes appear directly before regular videos on YouTube. The difference with the TrueView format is that if the user does not want to watch the ad, they can choose to “skip” the ad after 5 seconds and quickly move on to the video they wanted to see.
These videos are paid ads, and as an advertiser you can choose who you want to see your ad. By adopting the same format that you are familiar with from AdWords, where you pay only when someone clicks on your ad, here you only pay for your YouTube ad when someone actually sees it.
You only pay for the “real” impressions your ad generates. Hence the name “TrueView”. But what constitutes a view? A view is only recorded when the user has viewed a minimum of 30 seconds of your ad (or the entire ad if it is shorter than 30 seconds).
For example, let’s start by considering an ad of 25 seconds, which over a given period is served to 10,000 people. If 8,000 of these people “skip ad” without seeing your entire ad then you pay nothing for these views, whether they’ve watched 5 or 24 seconds of your ad. You only pay for the remaining 2,000 people who watched the entirety of your ad. And that is despite the fact that you would still have gained some value from the 8,000 people who did not watch the full 25 seconds of your ad.
What are the benefits of YouTube ads over TV, radio and outdoor?
YouTube should be seen as a branding activity in the same bracket as advertising on TV, radio, cinema or outdoors. But like many other forms of online marketing, YouTube advertising offers some interesting benefits that the other channels cannot offer:
- You only pay for actual views of your video ad
- You know exactly how many people have watched your ad
- You know (and decide yourself) how much you pay per view
- You can precisely target the audience that is most relevant to your business and product
What does it cost to advertise on YouTube?
As noted above, you only pay when people see more than 30 seconds of your video ad, or the entire video if it is shorter than 30 seconds. You always know what you get for your money and you can always see how much money you have spent and how many impressions you’ve received.
Just like AdWords, you can set your maximum bids. But instead of setting a maximum cost-per-click (CPC), you choose a maximum cost-per-view (CPV).
A typical cost-per-view will be below $1, often much lower. Depending on the video and the target audience, you can pay as little as $0.05 per viewing.
To continue our example from earlier, 10,000 people were exposed to the video and 20% of them chose to watch the ad to the end. So, at $0.05 per view, we have achieved 2,000 views for a total price of $100. You pay only $100 to get your 25 second video shown to 2,000 relevant, targeted people who have watched the entire ad. And in addition, there are 8,000 others who have also partially seen your video. And because they have seen at least 5 seconds (you can only skip the ad after the first 5 seconds have been viewed) you can expose them to your logo and key message during this time.
Is it difficult and too expensive to get professionally-produced video ads?
No, it does not have to be. You definitely do not have to produce a video ad for hundreds of thousands of dollars to successfully advertise on YouTube. You can get a long way with a GoPro camera and a little creativity. It’s not about the quality, so much as capturing the user’s attention with an interesting ad.
You can try to make a video ad yourself, or engage a company that specialises in producing this type of video ad. At s360, we can refer you to one of our partners with experience in creating videos to be used for advertising on YouTube.
If you want to get started with YouTube advertising, contact us for a no obligation chat.
Do you want to know more?
Casper DumontHead of Display Strategy
+45 31 39 07 firstname.lastname@example.org