How YouTube Ads work

Marketers can now target ads at people who recently searched for a certain product or service. If the content of a video ad is closely related to a search the viewer has been researching, they might be more likely to watch the entire ad or click through the ad to the website. YouTube lets you target your ad to users that are already interested in what you have to offer. By relying on viewers’ Google search history, YouTube makes it easy for you to reach your target audience and ensure a higher chance that a person who views your ad, will actually click on it.

Benefits of YouTube ads

1. Connect with your audience: Ads that play on or run next to YouTube videos can help you connect with potential customers in a unique and memorable way. You can be personal, share your expertise with the world, or put the camera on yourself and explain how your product or service can benefit your audience.
2. Reach the right audience: Reach your customers on YouTube by topics, keywords, or demographics, like “women under 35.”
3. Create a campaign in only a few minutes: Create your Google Ads account, set up a campaign, and reach your audience.
4. Measure your success: Find out if you’re reaching the right audience. Check your Google Ads account to track views, costs, and budget details. Visit the “Analytics” tab in your YouTube account to learn more about your viewers. For example, you can see which videos your customers are watching and for how long

Quick Stats & info on YouTube

• Your brand only pays for TrueView Ads when viewers watch for at least 30 seconds, watch your entire video, or interact with your ad via call-to-action (CTA).
• YouTube users spend an average of 19 minutes per day on the platform.
• 70%of people have bought a product after seeing it in a YouTube ad.
• YouTube analytics provides a wealth of data, including points viewers stop watching the video.
• An Agorapulse study found YouTube ads produced more views, more clicks, and higher conversions than Facebook Ads!
• Videohas the best conversion rate.  Videos deliver a greater feeling of being connected, encouraging future brand engagement.
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If your primary marketing goal is casting a wide net, non-skippable ads can effectively raise awareness for your brand. These ads can appear pre-roll, mid-roll, or even post-roll. If you’re worried about placement, YouTube serves these ads whenever they believe viewers are most likely to watch.

What is a YouTube TrueView ad format?

This is the main advertising format on YouTube. As the name suggests, TrueView ads give viewers the power of choice – they can choose to view or skip but will never be forced to watch. YouTube states that the maximum length a TrueView video ad can be is 6 minutes and the minimum is 12 seconds.

This YouTube ad format is the standard way to advertise on the platform, and probably the most affordable too. As per Google, 8 out of 10 viewers prefer TrueView ads to other in-stream video ad formats. They may play before someone watches a video, and the viewer may get the option to skip the ad after it plays for about 5 seconds. Marketers can customise their video ads with different Calls to Action (CTAs) in overlay text.

Advertisers pay for these ads only when users watch at least 30 seconds, or an entire short video, or interact with the ad in some way. Users can skip the ads they’re not interested in and continue to watch the ones that interest them. This makes TrueView ads worth the monetary investment for businesses, as well as ensure that they reach a more interested audience.

Types of YouTube Video Ads

• Skippable in-stream ads: Play before, during, or after other videos, can be skipped after five seconds.
• Non-skippable in-stream ads: Play before, during, or after other videos, but can’t be skipped and are 15 seconds or less.
• Bumper ads: Play before, during, or after other videos, can’t be skipped, six seconds or less.
• Outstream ads: Mobile-only ads that appear on Google video partner sites, but not YouTube.
• Masthead ads: Appears on the YouTube home feed.
• Overlay ads: These aren’t video ads, but rather text/image display ads that appear on YouTube videos on desktop.
• In-feed ads: Formerly called Video discovery ads (not to be confused with Discovery campaigns), this isn’t technically a video ad at all. This is how you can get YouTube to suggest your video in YouTube search results and the “watch next” section.

YouTube advertising metrics

It’s really important to understand the difference between a “view” and an “impression” for YouTube ads.

1. Views. As long as the ad is skippable, a “view” will be counted at the 30-second mark, or the end of the ad, whichever comes sooner. Think of a “view” the same way you’d think of a “click” on a Search ad – it’s a sign of engagement.
2. Impressions. If the ad is non-skippable, then there are no views, only impressions, since the user doesn’t have the agency to choose whether or not to engage. Basically, regardless of format, anyone who sees the ad will count as an impression, but only those who view it are engaging with your ad, and therefore only those who view it will be eligible to be added to your YouTube remarketing lists.

Optimization of Your YouTube Campaigns

Ultimately, your concern should not so much be about how much your YouTube Ads cost, but about what level of return you can earn from your YouTube advertising cost. This means that you need to keep an eye on your campaigns and then adapt them at regular intervals, to optimize their performance.

Conclusion

Allocating part of your budget for YouTube advertising costs is an excellent way to further your brand promotion and make the most of your marketing budget.

YouTube ads tend to deliver more cost-effective results than other methods. There are seven main types of YouTube ads, and they typically charge per view or action. YouTube ads function just like any other digital marketing platform. Focus on your key metrics, test regularly, and above all else, respect the data!