With video ads making up to 70% of all ad content online as of the beginning of this year, top-notch marketers agree that one of the initial steps to a successful and sales-resulting marketing campaign is aligning the message across multiple channels as part of one cohesive campaign. Google owns YouTube, so you can use this in your advantage and advertise on YouTube relying on the power of Google AdWords and involve yourself in bidding for ad placement.
YouTube is the second-largest search engine globally, home to over two billion videos streamlined into the network every day, overrun only by Google. With the portion of the pie already taken by video ad content being expected to grow at a fast pace in the coming period, we will have a touchdown on 80% of all web traffic to be to be generated by video by mid or end of 2019. With an average video ad runs between $.10 and $.30 per view, YouTube driven advertising has certainly become and turned itself into a serious challenger in this ever-changing digital marketing showground, and it could really boost business competitiveness to the next level.
Knowing all of this – advertisers naturally want a piece of the pie. So, how much do ads really cost on YouTube?
A YouTube ad costs whatever you pay for it – there is no real minimum bar to spending when advertising on the network, making it a rather affordable and easy-going platform. However, taking into consideration some useful operational statistics, as a user you can pay per view roughly around $10-$30 (per thousand) with the possibility to have your ad in four standard ad formats:
Keywords are comparatively a lower investment to make on YouTube than in good-old Google Search because views come amounting at $0.06 per click on YouTube, and $1-2 per click on Google. Additionally, you are getting a much more engaging pile of content for your prospects when YouTube targeting includes search history.
Common types of YouTube video ads
There are several main categories of video ads you can pick on the platform: TrueView, Pre-roll, and Bumpers, plus the in-search and in-slate option as well.
TrueView ads are considered to be the standard issue or regular video ad type on YouTube. Users only pay for the ads upon watching or interacting with the content and videos are quite customizable giving you the freedom to share a wide range of content.
The way they work is that viewers have to watch the ad for minimum of 30 seconds, watch it until the video ends or if they take some kind of action, let’s say selecting a call-to-action item. For the skippable option, YouTube sets it that the ad should be from 12 seconds to 6 minutes in length, while for non-skippable ones the length to be 15-20 seconds.
YouTube features two types of TrueView ads:
Video Discovery Ads (formerly known as In-Display ads)
These ads pop up on the YouTube homepage, search results pages, or simply as related video content on watch pages on the video sidebar. Upon clicking on the ad, the activated video page triggers a point on the column with a featured companion banner ad.
TrueView in-stream ads show up and play before someone actually watches the content they’ve selected. There is a counter that counts down the time while the ad plays for several seconds. Viewers sometimes are allowed to skip the ad after five seconds. However, users need to pay only after viewers have watched at least 30 seconds of their ad, making this option a popular pick among marketers.
These video campaigns can feature individuals, conversations and music that was legally obtained – or is considered royalty-free. However, experts do not suggest using a standard promotional commercial for these in-stream ones because such videos can be easily skipped, thus not providing your audience with a motive to keep on watching.
On another note, these ads are an excellent source of performance data needed for optimization and testing purposes. By collecting data on the ad’s completed views, partial views, video-initiated channel subscriptions, clickthrough rates on call to action objects, views obtained from a user sharing the content, and much more, advertisers can better grasp the complete value of the video ad, what are the profiles and habits of viewers and where to distribute additional budget to boost results.
Some in-stream ads do not offer the option to be skipped and are intended to play before, in mid-play or right after the main featured video. They are named Pre-roll ads, and usually come from 15 to 20 seconds in playtime length. There are also non-skippable, mid-play ads, that appear midway through a video that’s 10 minutes or longer in duration.
Pre-roll ads give you as much freedom as TrueView ads when it comes to the selected content. You can feature people, conversations, audio, and many more elements that can help you to tell the story of your brand in 15 to 20 seconds in the best way possible.
Since pre-rolls can’t be skipped, a call-to-action (CTA) mode works the best so you can optimize the level of attention you want to have from the viewer. Bear in mind that YouTube markets Pre-roll video space on a pay-per-click (PPC) basis.
Bumpers represent the shortest format of YouTube video ad available to users. With just six seconds of playtime per bumper, these ads are intended to shortly play before a viewer’s selected video.
They obviously are limited when it comes to good and quality storytelling in just six seconds, however, they are an excellent choice for boosting the buzz through bigger video campaigns focusing on a new product launch or some event. Proper planning is crucial because users need to be sure to use these six seconds wisely and focus only the parts of the brand that want to be memorized by the target audience.
With this option your ad will appear when a user looks for a certain category on YouTube. The gamechanger when it comes to a successful and widely spread ad is the precise use of relevant keywords when setting it up. You can use Google to track down the most widely used keywords associated with your video, brand, company or product so you can use them when setting up the ad.
This option features your ad or commercial showing up on YouTube partner videos with a duration of 10 mins or more. It basically offers the ad to appear as a suggestion after the video has ended. The ad can also be featured in between ad breaks, giving the user the opportunity to choose the suggested ads to watch.
Why YouTube makes ads so successful
YouTube gives you the ability to target and focus your ads by choosing some options such as individual demographics, geographical location, language used and subject matter. It is really practical feature that hands you over some level of control over who gets to see your ad. Before you post the ad, be sure to dedicate some time to determining your best target market, group, niche or age group. The last everyone wants is to waste precious dollars on ads for people have as little as no interest in what you are trying to promote, particularly when you have limited funds in your hands.
TV advertisements are a rather expensive way to reach a significantly wider target audience, luckily YouTube video marketing comes as an extremely cost-effective alternative. An average video ad runs between $.10 and $.30 per view, depending on more aspects such as video quality, pre-set targeting, and how it works out is that you would pay $1,000 for every 10,000 people that watched your video ad. You simply cannot reach those numbers for that amount of money on TV. When spiced with targeting tools, it stands as one of the greatest and most practical marketing platforms for small businesses.
Every user with a limited budget is interested to know how every dollar is being spent and what is the return of investment reached.
YouTube advertising really proves whether viewers got exposed to a specific message or whether they engaged it with the content. By using sophisticated and up-to-date advanced analytics it provides marketers with the necessary info to understand exactly who is watching their message and at what time.
You can now even set your daily budget and also select a delivery method – go with the regular delivery, which distributes ads evenly all they long, or go with a fast-tracked delivery, which boosts views as quickly as possible at a short time span. The latter option is excellent when it comes to making gains on a current or ongoing buzz or news item relevant to your brand’s video.
You can now choose and decide where you want your ad to appear:
YouTube Search: The video ad will be placed in search results and on the YouTube home page, channel pages, and video pages.
YouTube Videos: This activates TrueView ads that can appear as in-display ads or in-stream ads. Basically, you can choose whether the ad to appear before or around video content shown across the Google Display Network.
Experts advise creating separate campaigns for YouTube Search and YouTube Video in order to achieve better track performance metrics. The ads are intended for consumers who perform pretty different activities and require a different viewer engagement, leading to the need of separate performance monitoring.
Location, language and device-based engagement
Regardless where are you based, you can pre-set and define the location of consumers whom you want the ad to be presented to. The is also an in-built option to exclude certain locations.
AdWords gives you the ability to define the operating system, device, and network carrier for more advanced targeting.
Finally, you can go deeper in defining your target audience. Users can limit options such as gender, age, and parental status up to personal interests, such as showbiz, sports, fashion, cooking enthusiasts, professional affiliations, etc.
Why advertise on YouTube?
YouTube is a home to 1.3 billion users which is almost one-third of all people active on the Internet. These people watch almost five billion videos daily, so in addition to reaching to so many people, YouTube also allows you to place your ads on popular videos that are relevant to your target audience, helping you make sure that your message gets exactly where and how you needed it to go.
Which options can you use for targeting people?
There more than a few filters you can use to do your audience targeting:
- Demographic groups – Age, gender, income, or parental status
- Interests – People interested in certain topics
- Video remarketing – Reach target audience based on past interactions with your videos
- Placements – Showing your ads on certain channels, videos, apps, websites, or specific positions within websites
- Topics – Target ads based on specific topics available and already searched on YouTube
- Keywords – Show your ads based on words or phrases related to a YouTube Video.
The more filters are applied, the narrower your audience gets. If you have relevant audience it will increase the value, if not it will boost unproductive campaign costs.
How is the cost of YouTube ads calculated?
YouTube charges in accordance of the ad type selected.
- TrueView in-stream video ads only incur costs when a viewer watches or is exposed to the ad content for at least 30 seconds, follows the video in its entirety or interacts with it.
- TrueView discovery ads charge precisely when the viewer chooses to watch your video by clicking the thumbnail preview placed right next to related videos.
- The amount set as cost-per-view (CPV) bid lets Google know the maximum you are willing to pay for a view or interaction. You will be charged only the minimum amount it takes to overcome your competitor’s ad bidding.