It might surprise you to learn that YouTube is considered the second largest search engine in the world (Google is first, of course). People are creating and consuming a staggering amount of content on YouTube. Every day we’re watching over a billion hours of video and generating billions of views. Who is watching all those videos? YouTube is localised in over 100 countries and can be accessed in 80 different languages. YouTube attracts more than two billion active users each month, which means that about a quarter of the global population is regularly active on the platform.
These numbers are a signal to businesses that YouTube is fertile ground for advertising. It provides access to a huge population of potential customers, and the variety of content means that no matter what your ideal customers’ interests are, they can find something compelling to watch on YouTube. For a local business, there is a great opportunity to capture the attention of a new, broader, more relevant audience with your advertising. Let’s walk through everything you need to know about YouTube advertising, from the types of ads you can run, what it costs, and how to get the most out of each campaign.
Types of YouTube Ads
YouTube advertising allows you to run ads to consumers who are watching videos on the social platform. The different types of ads can help you achieve different marketing goals.
- Skippable In-Stream Ads play before, during or after other videos on YouTube. After 5 seconds, the viewer can click to skip your ad. With Cost-Per-View bidding you pay if someone watches 30 seconds of your video (or the full video if it’s shorter than 30 seconds) or interacts with your video, whichever comes first.
- Non-skippable In-Stream Ads also play before, during or after other videos on YouTube, but are limited to 15 seconds in length and cannot be skipped. You pay based on impressions using Target CPM Bidding meaning you pay each time your ad is shown. This format is an appealing option to reach a broad audience and grow brand awareness by having viewers see your entire message.
- Video Discovery Ads show as a thumbnail image from your video with some text. This ad format allows you to promote your content in places of discovery, including to the side of related YouTube videos, as part of a YouTube search result, or on YouTube mobile homepages. Users who click on Discovery Ads are typically more interested in your brand, having made a conscious decision to view your video.
- Bumper Ads are 6-second, non-skippable ads that play before, during, or after a YouTube video. Made for mobile, Bumper Ads are ideal to drive ad recall and awareness and are a cost-effective way to reach your target audience and ensure your message is delivered. Watch some great examples of Bumper Ads.
- ‘TrueView’ Video Ads give viewers the choice whether they want to watch your ad or not. There are two types of TrueView Ads In-Stream and Discovery, and you only pay when a viewer watches for at least 30 seconds or to the end of the video (whichever is shorter) or clicks on a card or other elements of your In-Stream creative. You can run ads of any length, giving you the freedom to experiment with creative formats and get more views from an audience you know is interested.
Can My Business Afford YouTube Ads?
When people think of video ads, they likely think of television and begin to fear that running video ads is a prohibitively expensive endeavour. Fortunately, that couldn’t be further from the truth. YouTube Ads are relatively inexpensive. For many types of YouTube Ads, you only pay for the advertising when viewers consume more than 30 seconds of your content, or engages with your ad – like clicking on a call-to-action overlay. This pay-per-view model works in your favour, unlike some other forms of advertising where you invest upfront and have no way of knowing whether it’s being seen. With YouTube Ads you can be sure every dollar you’ve spent reflects the fact that a prospect has viewed your ad.
Are YouTube Ads Effective?
Your next question may be, “Do people actually watch YouTube Ads?” The great news is that, yes, millions of people do, and seeing your ad makes them 10x more likely to share other content from your YouTube Channel or subscribe to your Channel. 62% of businesses are using YouTube as a channel to post video content but a far smaller number are utilising YouTube’s advertising capabilities. And that’s good news for savvy businesses: YouTube is wide open for you to come in, make your mark, and dominate in advertising. Creating a handful of simple, well-targeted advertising campaigns will allow you to get noticed, and bring new customers to your business.
YouTube Ads with LocaliQ
YouTube advertising is a smart, effective way to reach potential customers through a medium they love engaging with. People are watching billions of videos each day, and you have a massive opportunity to attach your name to the content they’re already consuming at a mind-boggling pace. If you’d like to get your video advertising efforts off the ground, consider LocaliQ’s YouTube Ads solution, which covers everything from video creation to campaign management and analytics. We monitor your ad’s performance, and make strategic changes to bring the most new leads to your business.
Contact us below to discuss the viability of a YouTube Ads campaign with one of our expert Digital Marketing Consultants.