The Benefits, The Ads to Utilize, & The Ways to Measure
Why is YouTube so effective? The answer is easy, YouTube is simple. YouTube has made it easy for content creators to share their material with a large audience at the click of a button and has made it just as easy for the consumer to find this content. For decades, Television ads have been viewed as the king of advertising, but when one ad in a major media market can bring in a rate $ of $10k – $100k it makes it hard to invest if your company is smaller to medium in size.
This is where YouTube has capitalized and flourished. Across the world, 1 billion hours of YouTube video is watched, and 50 million content creators across the platform are uploading 576,000 hours of new content daily, giving an almost endless supply of inventory for brands and advertisers to place their advertisements. According to google, people who watch these ads placed through YouTube that are watched to completion are 23 times more likely to visit or subscribe to a brand channel, share a brand video, or look farther into the brand. If the ad isn’t watched to completion, the person watching the ad is 10x more likely to do one of the previous said actions. The numbers speak for themselves, but how those numbers are achieved.
Worldwide, YouTube is closing in on 2 billion unique users, making it one of the most popular social media sites, and putting them closer to Facebook in monthly active users. The number of unique visitors is astounding, so it makes sense that a recent DataReportal study has reported that79% of all internet users have a YouTube account. These numbers are attractive, but how can you get there. Marketing Bitz, a leader in educating small to medium size companies on digital marketing and how to utilize it for their business, have narrowed down the 5 reasons that make YouTube such a strong partner for business wanting to advertise video content (summarized):
- YouTube’s Reach is Enormous: As a hybrid search engine/social media network, YouTube is uniquely positioned to reach an incredibly wide range of internet users. Forbes classifies internet users into two basic categories: those seeking information and those seeking social interaction. The second largest search engine and second most visited social media platform, YouTube reaches both of Forbes categories. Google also reports that YouTube reaches more people aged 18-49 than any broadcast or cable TV network—and that’s on mobile alone.
- YouTube Influences Purchasing Behavior: Between advertisements, vlogs, and videos by prominent influencers, studies show that YouTube content has a significant impact on customer purchases. A recent YouTube Insights report also notes that 66% of beauty product purchasers, 72% of auto-vehicle purchasers, and 62% of smartphone purchasers indicate that YouTube influenced their buying decisions.
- It’s Easy to Track Metrics: Up-to-date metrics are key in evaluating your advertising strategy and ensuring that your ad dollars are being used most efficiently. YouTube makes this process easy and accessible. Google offers information about views, costs, and budget details through AdWords, while the Analytics tab of your YouTube account provides more in-depth information about your viewers.
- Advanced Targeting is Available: Through YouTube, you can target people based on demographics like age, gender, parental status, and interests. By targeting affinity audiences, you can ensure your ads reach people who have already demonstrated an interest in relevant topics.
- ROI is High Across Pricing Options: A recent meta-analysis conducted by BrandScience, Data2Decisions, GfK, Kantar Worldpanel, MarketingScan, MarketShare, and others reveals that YouTube advertisements offer a higher ROI than traditional television ads, in almost 80% of studies.
Youtube is one of the best options for creating a cost-effective advertising campaign and gives a variety of ads to utilize on the platform. These ad types range from skippable in-stream ads to boosted posted that will be featured alongside organic content. The 4 main varieties are TrueView In-Stream Ads, Non-Skippable ads, Bumper Ads, TrueView Discovery Ads.
The first, TrueView In-Stream Ads, are the ads that play before the video. They are designed to reach users interested in your product which you’d enter in your targeting. These ads allow the user to skip after 5 seconds, and only charge advertisers if they’re watched for at least 30 seconds. Next, are the Non-skippable ads. These ads don’t come with a banner and are typically used to generate brand awareness. You do run the risk of irritating the viewer, but the viewer will see the entire message about your brand. The third ad are the Bumper Ads. Bumper-Ads are also non-skippable, but these ads have a short 6 sec limit, like an ad on Snapchat. These ads are helpful if you’re trying to highlight something that can be conveyed quickly. Last, is the TrueView Discovery ads. These ads show up on the search results page, in related videos, and on the YouTube home page made to seem like they’re blending in with the other videos that are similar to your search. These ads are best used when the content tells a story; reviews, walk-throughs, tutorials, and anything that answers questions, informs, or entertains. Challenge with these is to get the user to click, but if and when you secure that view, they’re genuinely interested and want to learn more about your ad. Now that you’re familiar with the statistics and what types of ads to use, what are the best way to measure your ads success.
Metrics that coincide with video advertising can be tricky, especially if you do not include a link to your site or product landing page. The metrics for any video ad depend on the goal of the ad, the type of ad that you’re utilizing, and various other factors. Ignite Visibility, a Digital Marketing firm, alongside the recommendation of Google AdWords, focus on these 7 metrics:
- View rate: Looks at how many views or engagements an ad receives divided by the number of times your ad is shown — essentially, it’s actual views compared to how many times the thumbnail shows up in someone’s account.
- Avg. CPV: Average cost per view. This is the average amount you’ll pay when someone watches 30 seconds of a video or the duration (if shorter than 30 seconds) or takes an action.
- Watch Time: Looks at the total length of time people watched your ads, represented in seconds. This can help you get a sense of how interested people are in your videos.
- Avg. watch time / Impression: Looks at average watch time, divided by the number of possible views. Again, this metric can tell you whether you’re on track with your messaging or if something needs to change.
- Views: Represents how many times someone watched your video ad or took action. This metric reveals how much of your target audience you’re reaching.
- Clicks: Like search ads, clicks represent the number of times viewers clicked a link on your video. Clicks let you know whether you’ve created an engaging ad that makes people want to learn more.
- Video viewership: Viewership is a bit different than Views. This metric offers a breakdown of video completion rates. The benefit is you can see where people lose interest–do they complete 25%, 50%, 75%, or the whole ad
Video content should be apart of any media plan; may it be television, OTT/CTV, programmatically across the web, YouTube, or etc. Youtube continues to grow in viewership, content creators, users, and metrics making it one of the best forms of video advertising not only on the web, but across all of the media industry. Video content does take more work to produce, but brands and advertisers whose budget may not be big enough for more expensive options, such as television, can still utilize this content effectively and in budget with the help of YouTube. Like any other advertising decision that your company makes, YouTube Ads do require constant updating and optimizing to achieve the best results, but if done correctly and efficiently, it can prove to yield some of the strongest results. Currently on YouTube there is a lack of competition and a surplus amount of inventory to utilize, so with a creative strategy and the right targeting, your brand can reach one of the largest audiences in the media industry.