With millions of videos uploaded daily, the video sharing platform YouTube offers a great opportunity for brands to reach a variety of audiences all over the world.
In this reading, you will learn about advertising on YouTube, including the benefits and the different ad formats offered.
Display ads vs. TrueView video ads
Before you learn about the benefits of advertising on YouTube, it’s important to know that there are two different types of ads on YouTube: Display ads and TrueView Ads. This can sometimes be confusing as they are both often referred to as just “YouTube ads.”
As you have learned, Display ads are visual ad formats placed on websites or applications. They are static ads created in Google Ads using Display campaigns. Think of them as digital billboards. Display ads use the Google Display Network, which is a group of websites, videos, and apps where ads can appear. When on YouTube, these ads appear next to the streaming video. Revisit an earlier lesson on Display ads for further information.
A YouTube video page shows the placement of a display ad to the right of the video player.
TrueView Video Ads
Alternatively, TrueView ads are video advertisements. They are called “trueview” because brands only pay when someone chooses to view them. While these ads are also managed in Google Ads, advertisers must first upload their videos to their YouTube channel before creating a campaign.
After uploading your video ad to your brand’s channel, there are a variety of different ad formats to choose from. These include: skippable video ads, non-skippable video ads, overlay ads, and in-feed ads.
- Skippable video ads allow viewers to skip ads after five seconds.
A YouTube video page shows the placement of a skippable video ad in the media player represented by a skip symbol.
- Non-skippable video ads must be watched before a video can be viewed. They run between 15 to 20 seconds, depending on regional standards. A subcategory of non-skippable ads is bumper ads.These ads run for just six seconds.
A YouTube video page shows the placement of a non-skippable video ad in the media player represented by a clock symbol.
- Overlay image or text ads appear on the lower 20% portion of a video. Unlike the other TrueView ads, overlay ads can only be viewed on computers and not mobile devices.
A YouTube video page shows the placement of an overlay ad at the bottom of the media player.
- In-display ads, also known as TrueView Discovery Ads, appear in the YouTube search results for video queries with related topics. They include a video thumbnail, title, and description. Think of them as Search ads with videos instead of webpage links. When selected, they can be watched in full—independent from other videos.
A YouTube video page shows the placement of an in-display ad in the suggested videos section.
Benefits of advertising on YouTube
There are a number of reasons why advertising on YouTube is beneficial to most brands. The most recognized reasons are cost, reach, and effectiveness.
YouTube ads are inexpensive
While the production cost of video ads can differ from company to company, it is relatively cheap to run YouTube ads. YouTube ads perform on a pay-per-view, or a pay-per-click model. This means that brands don’t have to pay for an ad until a specific action is taken.
On average, these ads cost between $0.10 to $0.30 (USD) per view or action. The exact cost depends on factors such as watch time, audience targeting, and campaign objective. The low cost is helpful for brands with small budgets or brands with larger budgets seeking to produce many ads.
YouTube ads help you reach your audience
YouTube gives brands the opportunity to reach a variety of audiences who are searching for their brand or topics related to their products. Brands can target customers using specific topics, keywords, or demographics.
Your brand’s video can also appear in the suggested video feed of another video. This means your ads can appear on popular videos that will be seen by a relevant audience.
YouTube ads are effective
With a larger audience, you have more opportunities for viewers to interact with your brand. In fact, people who view an ad are 10 times more likely to engage with the brand behind the ad. This is great for brand awareness and driving sales.
YouTube is a powerful tool for brand marketers trying to get noticed by relevant audiences. Its capabilities and low cost make it a promising tool to meet your brand needs.