Top Reasons to Advertise on YouTube
Every month, more than one billion people collectively watch six billion hours of YouTube videos, with more than half of these views coming from mobile devices. It has also become a video search platform taking place behind Google as the second-biggest search engine.
Video has seen a quick rise to the top of content marketing, generating a higher conversion rate than any other content format. In fact, 90 percent of customers say video helps them make buying decisions, while 64 percent say that seeing a video makes them more likely to purchase.
While people are confined to their homes searching for daily entertainment and distraction, it’s no surprise that platforms like YouTube have become even more in demand. With the likes of Joe Wicks providing daily PE lessons from home and individuals looking for virtual entertainment, searches have soared over recent weeks.
“Joe Wicks live workout YouTube”
“virtual pub quiz YouTube”
It’s clear people love YouTube, but a key question remains: is it worth investing in for businesses? From impressive measuring capabilities to proven influence on purchase decisions, let’s explore the main reasons why your business could benefit from YouTube advertising.
Types of adverts on YouTube
Before we jump in, lets cover the different types of adverts you can use while advertising on YouTube.
It’s important to note that very short videos (around 30 seconds or less) and certain video ad formats like non-skippable ads, skippable ads and bumper ads, may be less likely to be served. This is done by Google to better optimise the overall viewer engagement and revenue over the course of a viewer’s YouTube session.
Reasons why you should advertise on YouTube
Large audience reach that keeps on growing
Forbes once classified online users into two basic categories:
- Those seeking information
- Those seeking social interaction
A hybrid between a search engine and a social media network, YouTube is in a unique position to reach users in both of these categories. There has been a recent shift in viewing habits with YouTube becoming more popular among 18-49-year olds than traditional TV. While this age cohort may not represent your primary target audience, they do hold a lot of buying power in any market.
Additionally, accessing YouTube is now even easier through the likes of Apple TV and smart TVs, resulting in the amount of time spent on the platform doubling in the last year alone. This increased viewership across different devices represents an opportunity for businesses to reach their target market through a variety of channels. If you’re trying to communicate your business’ message to the largest possible range of customers, YouTube is the platform for you.
Although video ad content must be hosted on YouTube, video ads can appear across other websites and apps which run on Google video partners, further extending your reach. However, it’s important to note that this depends on your ad format and campaign settings.
Lower cost and less time consuming compared to other social channels
Something else you’ll love about YouTube advertising is how cheap it is to get started. At its most basic, it only requires an advertising budget and a video with some ads costing as little as a few pence. In fact, a YouTube ad can actually cost as little or as much as you want as there is no minimum spend.
The most expensive advertising option is on the homepage, known as the Masthead. However, there are also much more affordable options including TrueView in-stream. These are 30-60 seconds pre-roll ads that are cheaper than traditional cost per click or cost per view ads. Plus, you only pay when someone actually views your ad. When watching a YouTube video have you ever noticed the “Skip Ad” button? When you’re viewing a TrueView ad, you have to watch it for at least 30 seconds or engage with the ad by clicking a CTA before the advertiser is charged.
Although 88 percent of marketers are satisfied with the ROI of their video marketing efforts, the biggest roadblock to video ads is usually budget and production limitations. Recognising this challenge, YouTube has created a new free Video Builder in Beta to help businesses easily create content for their YouTube ads.
With such a wide range of options, it’s up to you to determine your ideal budget and take advantage of the ROI it can create.
Advanced targeting capabilities
The targeting capabilities of digital advertising platforms is what sets them apart and YouTube does not disappoint. It has all the expected capabilities to help you reach a precise audience, including demographic targeting to select audiences by age, gender and parental status. As well as keywords, topics, interest targeting and remarketing.
Affinity audiences is key to these capabilities. By targeting affinity audiences, you can ensure your ads reach people who have already demonstrated an interest in specific topics linked to your business. You can also target in-market audiences which include people actively researching products and services like the ones your brand offers.
Beyond targeting viewers, YouTube allows you to target ads on specific channels and videos. With some research, you can place your ads on popular videos that will be seen by a relevant audience, extending your brand reach even further.
But these capabilities are only the start! What really sets YouTube apart is that it can also use contextual placements to show your ads on specific videos, channels or websites. In other words, it places your ads where it will most likely attract an audience with high conversion potential. This allows you to target high-intent users at various stages of the buying process. You could even place ads on competitor videos and steal their leads. Clever or what?
YouTube provides accurate measurement on every aspect of your ad campaign. Real-time reporting is key to evaluating your advertising strategy to ensure you’re getting the most from your budget. Google AdWords offers information about views, costs, and budget, while the analytics of your YouTube account provides more in-depth information on viewers.
You can also track video viewership which shows how often an ad is watched and to what length. These metrics makes it simple to evaluate how well your ad is performing and where improvements need to be made to get the most from you advertising budget.
We’ve had experience working with brands such as OANDA to boost their presence and conversions through YouTube advertising. In March, OANDA took over the YouTube Masthead across desktop and mobile in Singapore, generating impressive results to brand impressions and conversions. This is an extremely exclusive space and forms just one part of a wider growth awareness strategy for the Forex client. If you want to find out more around what this platform could do for your business, get in touch with our paid media experts.