A Guide to YouTube Ads

YouTube advertising is growing, and it’s not hard to see why. With more than one billion unique users per month and an average of 1 billion hours of video watched every day, it’s the perfect place to reach your audience, whether you’re looking to sell products or increase awareness about an issue you care about.
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A Guide to YouTube Ads

YouTube advertising is growing, and it’s not hard to see why. With more than one billion unique users per month and an average of 1 billion hours of video watched every day, it’s the perfect place to reach your audience, whether you’re looking to sell products or increase awareness about an issue you care about.

YouTube Advertising Statistics

(Source: Influencer Marketing Hub)

However, as the world of advertising continues to evolve and adapt to new platforms, staying ahead of the curve can be tricky. 

Read on to learn more about how youtube advertising works to start getting your ads in front of an audience that’s already interested in what you have to offer.


An Introduction to YouTube Advertising

YouTube advertising is a form of online video advertising where you can be seen by consumers who are looking for products or services you offer. It’s one of many ways businesses can promote their brands, products, and services on YouTube. 

YouTube’s unique value proposition (UVP) offers free uploads and video content distribution.

A consumer might see your ad while watching a video in YouTube’s library or conducting branded searches. The ads appear as video thumbnails that play before, during, or after another video. Most videos on YouTube have an ad preceding them.


How Youtube Ads Work

The videos used in YouTube advertising are posted and hosted on the brand's YouTube channel, but they are served through Google Ads. As a result, to advertise on YouTube, you must first create a channel and start uploading videos.

Simultaneously, you must sign up for a Google Ads account (or login to an existing one)  and link to YouTube. By linking your Ads Accounts, you will give Google Ads access to the videos you wish to show to your audience.

You only pay once those advertisements are created and running, and only if the user does one of the following:

  • Watches at least 30 seconds of your video ad;
  • If the video commercial is under 30 seconds long, they will watch the entire ad;
  • Clicks on the advertisement;

You’ll need to be skillful in copywriting, graphic design, and creating a top-notch media plan to run a successful ad campaign. You can run different campaigns using different ad groups and test them. 

Once you’ve set up your ad, you can easily monitor its performance with YouTube’s built-in analytics and A/B testing. These real-time conversion tracking reports provide data on several aspects of your campaign, including impressions, reach, frequency, cost per action (CPA), click-through rate (CTR), average cost per click (CPC), conversion rates, and Interaction Rate (IR), etc. 


7 Reasons YouTube Ads Are Important

Before you start creating YouTube ads, you need to understand why they’re essential. Here are seven reasons Youtube ads are crucial for your business:

7 Reasons YouTube Ads Are Important

(Source: Engaio Digital)

1) They drive traffic

Quality ads help drive traffic to your website. If someone sees an ad and clicks on it, they’ll be taken directly to your website. For example, if a user is watching a video on YouTube, they are considered on-site and are more likely to click an ad than surfing around elsewhere online. 

2) They reach a targeted audience

Unlike other ads, you don’t have to choose a specific audience or demographics. Youtube ads are automatically targeted to users based on keywords and search terms that match your business.

3) They offer analytics

With YouTube, you know what people watch, how often they view it, and when they stop viewing it. And you can dig even deeper by looking at demographics, location, and behavior. So you know what your customers want to see, and you can deliver that.

4) You’ll get new customers

YouTube ads will help you get new customers. You can market your business to those who are currently unfamiliar with it and convince them to give it a try, thereby improving your conversion rates. 

By utilizing YouTube ads, you’ll have a chance to expose your brand and products or services to customers outside of your current target audience. As a result, you’ll build your company’s reach and encourage new people to learn about and utilize your offerings.

5) You can promote products and services

It’s free to create an account and begin uploading videos, so it makes sense that YouTube is one of the first places small businesses go to promote their products and services. 

6) Brand awareness

YouTube can help to establish and build your brand. For example, you can use video ads to drive traffic to your YouTube channel to share more information about your products or services. 

7) Create a loyal audience

No matter what you’re trying to sell, whether your brand or a product, you want people to keep coming back for more. One way to do that is by creating a loyal audience on YouTube.  

When someone watches one of your videos and likes it, they can visit your landing page and start conducting more branded searches to learn more about your products and services. People become loyal when they pass through all the stages of the Sales Funnel and are thoroughly satisfied.


Types of Youtube Ads

YouTube’s ad options are more sophisticated than many people realize, and there are far more than just banner ads. So whether you want to target the audience that’s most likely to buy your product or expand the reach of your video by partnering with other brands, YouTube has an ad type that will help you achieve your goals. 

We’ll explore the six types of YouTube ads you should know about and explain how they can benefit your company and your viewers.

Types of YouTube Ads

(Source: Local IQ)

Skippable in-stream video ads

Every video on YouTube can contain up to six 15- or 30-second ads that appear before, during, or after your video. You choose which ad will play. Viewers don’t have to watch them if they don’t want to.

It is an excellent way for your viewers to sample what you offer; if they like it, they may come back for more. You can also decide whether to show these ads only in specific geographic locations.

Non-skippable in-stream video ads

Non-skippable in-stream ads run during a video, similar to television commercials. These ads play automatically as part of a given video, can’t be skipped, and force viewers to watch an ad before viewing content from their favorite YouTubers. 

Users will need to install extentions like Ad blockers to avoid seeing YouTube ads.

In-feed video ads

The most traditional video ad on YouTube is a pre-roll or in-feed ad that plays before or within another video. These ads appear when someone watches more than 30 seconds of a video. They also only show up if an individual is using a mobile device, where consumers are consuming more content these days.

Bumper ads

YouTube bumper ads are intended to be seen before a video, at which point they play automatically. The bumper ads appear above or below videos based on when viewers are more likely to stick around. 

Many people choose bumper ads because they offer little intrusion into a user’s watching experience and can be as short as 6 seconds. Still, you might also consider whether your audience will be receptive to your message after their previous video ends.

Outstream ads

These mobile-only ads play with the sound off until you tap to unmute them.  They’re a great way to reach people who don’t want to be bothered by video ads like people on their morning commute or during a quick break at work. They’re so effective at getting your message across while being nonintrusive.  They are unavailable on YouTube but run on Google video partners' websites and apps.

Masthead ads

Masthead ads appear at the top or bottom of your video as it plays. You can design these as simple or complex as you’d like, but they’re typically just a one- or two-line copy call to action (CTA) that matches your business identity and keeps viewers from missing out on going to your landing page. 

Masthead ads are great for catching viewers who might have missed your primary CTA on screen.


Youtube Ads Vs. Digital Marketing

Many companies choose to advertise on Youtube, but many don’t fully understand how it differs from traditional digital marketing tactics such as pay per click (PPC) advertising, banner ads, and search engine optimization (SEO). The differences can significantly impact which strategy is most effective for your business. 

So let’s take a look at some of the main ways that Youtube ads differ from other digital marketing tactics and how you can use them to your advantage in your marketing strategy.

1) Targeting on Youtube is different

Unlike many digital marketing platforms, YouTube doesn’t give you much (if any) control over who views your ads.

2) There's more leniency with branding guidelines

A significant difference between digital marketing and YouTube ads is that there are few guidelines on branding. It means you can have your logo and name in sight, which also helps with lead generation.

On top of that, traditional marketing has a hard time speaking to your potential customer base in their native language. In contrast, YouTube advertising does not have as many restrictions when it comes to languages.

3) You can be less experimental

If you’re just starting, digital marketing can seem like a world of opportunities and uncertainties. With digital marketing, you don’t need to be an expert marketer; all you need is an audience interested in your topic. You can experiment with what content works for them, what appeals to them, and how often they want it.

With YouTube advertising, you’re working with an existing audience. It means you can be more experimental regarding what types of ads work best for them and how they respond to different kinds of messaging.


Youtube Ads Vs. Display Advertising

YouTube and display advertising are powerful marketing methods that can yield excellent results for your business. However, there are some distinct differences between the two pay per click (PPC) advertising platforms, determining which one might be best suited to your needs. 

Read on to learn more about the three main differences between Youtube ads and display advertising, and decide which strategy will work best for you.

1) Characteristics

The difference between video ads and display ads is about placement and functionality. When it comes to placement, video ads will only show up on videos, while display ads can appear anywhere on a website or app that allows ad space even in-between photos or articles. 

As far as functionality goes, video plays automatically when someone lands on your page (unless they choose not to), while it takes more effort for people to click through a static image ad.

2) Pricing

Unlike display ads, YouTube ads are auction-based, and ranking is based on Ad Rank. So if you want to purchase a spot on YouTube, you need to set a budget that will cover whatever price Google demands. 

On top of that, you don’t know what your ROI is until much later in campaign execution. 

3) Execution

Youtube ads are much more costly to execute than display advertising. It requires a lot of data, a lot of money, and you need to work with Google, Youtube, and your advertising team to get it right, which can be time-consuming. 

If you aren’t in an industry that uses Youtube as their main form of content consumption, then go display first.


6 Ways Youtube Ads Can Help a  Business

Youtube ads are an essential marketing strategy, especially if you’re trying to reach a younger audience who spends a lot of time on the platform. These six ways Youtube ads can help your business reveal how to take advantage of this powerful marketing opportunity.

1) Use How-To Videos

How-to videos are some of YouTube’s most popular content. Rather than simply showing customers what your product is, demonstrate how to use it, making them more likely to purchase. 

2) Promote your website with YouTube ads

If you’re not using video ads on your business website, you’re missing out on a huge opportunity to capture visitors, promote sales and generate leads. According to a recent Mediamind study, people are 27.3x more likely to click on a video ad than on standard banners.

3) Get customers to subscribe to your channel

Advertising on YouTube can help you connect with potential customers and get them to subscribe to your channel. Once a customer subscribes, they are more likely to pay attention to what’s going on with your business and brand, which can help you attract even more customers over time. 

4) Use YouTube ads when producing physical products

If you’re selling a physical product, consider using YouTube ads to boost your sales. Video ads can be more effective than simple text adverts because they allow you to communicate a strong visual message with your customers. 

Use short videos that showcase what your products look like in real life and how they are used, which will make customers more likely to trust and purchase from you. It is especially effective if you are an e-commerce site selling clothing or other merchandise.

5) Use YouTube ads when producing services

YouTube ads can be a great way to advertise service-based businesses. By showing a product in action, you can give your audience a better idea of what they’re purchasing. 

Not only that, but video ads are also known to work well with consumers who feel like they know you or at least understand your personality when watching videos online. If you don’t have one already, set up an account on YouTube and start posting videos.

6) Encourage mobile views and interaction with videos

To get your message across most effectively, you’ll want to make sure that viewers can watch your video content wherever they are. If you have products or services in an environment where mobile devices are prevalent, reach out to advertisers and ask them to create a custom wrapped-banner ad for your channel. 

It allows consumers who visit YouTube on their mobile devices from that advertiser’s site to view your videos directly on YouTube without being redirected elsewhere.


It’s a Wrap!

An ad on YouTube can be one of the best ways to generate new customers and revenue, but if you don’t choose the right type of ad for your brand, you might not get the results you’re looking for. 

YouTube ads are essential to business owners who want to generate more revenue from their content. By following this guide, we are confident you will see an increase in viewer engagement and lead generation.

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