Jacob Statler

 

What if I told you there was a way to gain access to 30 million targeted individuals with your advertising plan?

No, that isn’t a sales gimmick or exaggeration.

That happens to be the number of visitors Youtube receives on any given day. This broad audience makes youtube advertising a powerful advertising channel that can help any business reach the right users at the right time when they are engaging with video content.

When most businesses consider their lead generation, they gravitate towards PPC platforms like Google and Facebook. But even information released by Google shows that more users are using the video-sharing platform as a search engine.

As the number of daily site visits climbs past Facebook and Amazon, more advertisers are adding Youtube advertising to their marketing playbook.

Here’s how you can leverage the multi-billion member platform to generate leads and improve your ROI.

Why advertise on Youtube?

The popular video-sharing platform – not to mention video as a whole – is exploding right now.

YouTube’s content is engaging and dynamic, making it a valuable tool for viewers and businesses. Plus, it is highly shareable.

Because you can post a YouTube video on any platform without it feeling out of place, it’s even more shareable than tweets and Facebook posts.

The dynamic platform has even earned its spot as the 2nd most popular search engine after Google and the 2nd largest social media platform.

The fact that the platform boasts the capability to run highly specialized ads with a higher ROI for a fraction of the cost practically seals the deal for advertisers.

In case you needed any more reason to expand your reach on the 2 billion-member platform. Here are 6 reasons to add YouTube advertising into your marketing plan today.

1.   Youtube is the #2 most visited site in the world.

Yes, Youtube even beats out Facebook and Amazon – an impressive feat for a platform with little in the way of written content.

According to total traffic and unique visitor information maintained by Alexa, Youtube clocks in second among the world’s most popular websites after Google. That’s in both the U.S. and global markets for 2019.

Meaning if you haven’t added Youtube advertising to your ad plan yet, you are missing out on some serious traffic.

2.   Youtube’s reach is unmatched.


moblyft ctv ott youtube advertising

Speaking of traffic, Youtube is reeling in an unmatched 9.4 billion visits every month across the globe.

A new report from Statistica also reveals that Youtube takes the lead on the most downstream mobile visits.

Youtube accounts for the most megabytes holding an impressive 37 percent of all mobile internet traffic. This is way ahead of Facebook, which stands second with 8.4 percent and Snapchat with 8.3 percent.

This statistic means that Youtube users are consuming more content per megabyte than even other video streaming apps like Netflix.

Revealing that users want more short-form video content they can watch anywhere at any time. On just mobile alone, Youtube reaches more adults age 18-49 than any cable tv or broadcast network.

3.   Youtube influences purchasing.

Youtube video influence 64% of consumers to make purchases. This is higher than other social platforms like Facebook, Twitter, or Pinterest.

Brand advertising through social media content is now ground zero for brands looking to connect with their audience.

In fact, more consumers are using Youtube as a search engine to look up product reviews, how-tos, tips, and extra advice than ever before.

The bottom line – product placement on Youtube has power.

The video platform is full of prominent influencers with loyal and trusting viewers. Influencers who want to monetize their videos with organic, native advertising.

4.   Youtube has easily trackable ad metrics.

When it comes to tracking your advertisement, YouTube’s ad measurements are among the best. Advertising metrics are crucial for evaluating the effectiveness of your advertising campaign, by keeping an eye on what’s working and what’s not.

Google Adwords simplifies this by offering additional data on views, costs, and budgets. Depending on your advertising package, Youtube’s Analytics tab shows detailed information about viewers like engagements, clicks, reach, and frequency. You also learn how much of a Youtube video advertisement viewers are watching.

5.   You can target hyper-specific audiences.

You probably know that advertising to the wrong audience is as good as flushing your money down the toilet. That’s why Youtube enables you to target audiences based on their age, gender, and interests.

The fact that Google owns Youtube and every Youtube account is also paired with a Gmail account, gives you the highest quality and most targeted ad viewing data on the internet. The result? Youtube allows you to target your ideal affinity audience to guarantee interested leads.

6.   Youtube ads are proven to have a higher ROI.

A meta-analysis of 56 case studies throughout 8 countries showed that Youtube advertising came out on top of traditional TV advertising in terms of ROI in almost 80% of the cases. There are also different Youtube advertising options available that go as low as 4 cents per view. What does this mean? More savings for your brand with higher ad potential, practically driving ROI and ad success.

Youtube advertising statistics


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Still not convinced? Check out these Youtube advertising statistics:

  • 9% of small businesses in the U.S. use Youtube advertising.
  • 96% of American internet users age 18-24 use Youtube.
  • Over 50% of Americans age 70 and up use Youtube.
  • Youtube is available to 91 countries and 95% of the internet.
  • 70% of Youtube visitors are on mobile.
  • Americans age 18-34 use Youtube more than traditional TV.
  • Youtube works in 80 different languages.

Youtube advertising cost

Free Youtube advertising can only be achieved by posting your videos and bringing in organic traffic. This process is time-consuming, but it’ll eventually pay off to become an authority in your niche. Kickstarting your campaign with paid Youtube advertisements will drastically speed up that process — when done right.

You’re probably wondering:

How much does Youtube advertising cost?

When you’re running an advertisement, there’s no set Youtube advertising rate. The video ad or banner, target audience, and your advertising campaign goals determine the cost.

Most of the time, you’ll be paying on a per-view basis for your ads. It’s essential to establish a maximum spending amount, so you don’t accidentally overspend your campaign’s budget.

Typically, the average marketer pays anywhere from $0.10 to $0.30 per view.

Each factor impacting the ad cost will differ slightly from the other, but the important thing is to understand how each one affects the prices.

These are the main factors determining Youtube advertising prices:

Bidding: Bidding is the main factor that will determine the cost of advertising on Youtube. Most of the time, you’ll bid against competitors for the cost per view or CPV that you’re willing to pay without going over your set maximum bid amount.

Targeting Selection: The audience that you’re targeting with your ads is going to affect the level of competition you’ll encounter when bidding. The more competitors that are targeting your audience, the higher your CPV bids are going to be.

Advertisement Type: There are 6 main Youtube advertising options to choose from, excluding native ads from individual channels. A rule-of-thumb is that bigger ad spaces and more exposure will drive higher costs.

Types of youtube video advertising

Youtube video advertising may come with varying lengths and skipping options, but all video ads are considered TrueView in-stream ads from Google.

Skippable video ads

Skippable video ads can be placed before, during, and after featured videos on all device platforms. Your video advertisement will have a countdown button where viewers can click to skip the full ad after a set period of time — usually after 5 seconds.

Non-skippable video ads

Youtube Non-skippable ads are video ads that play for a set time, typically under 30 seconds, that aren’t skippable. Non-skippable video ads can show up in the beginning, middle, or end of featured videos on mobile and desktop.

Bumper ads

Youtube Bumper ads are short non-skippable video ads that normally last around 6 seconds before the featured video. Bumper ads show up for both mobile and desktop users. A lot of the time, advertisers will utilize a combination of skippable and bumper video ads.

Native Youtube Advertising: influencer endorsements

Native advertising is an ad strategy where an advertisement is blended into a viewer’s natural feed. The result is a cohesive look that comes off as natural or site official content.

Everywhere you turn there seems to be another upcoming Youtube star, commonly known as influencers. If you thought that was never-ending, you should see their followings.

In a world trending towards seemingly authentic content, this bodes well for advertisers looking for cost-effective strategies to expand their reach. Instead of dealing directly with Youtube and Google for ads, you’d be doing business directly with various owners of Youtube channels.

The added benefit is that advertisers are able to tap into highly niche markets with trusted followings.

Types of non-video youtube advertising formats

Not all ads show up in the form of videos on Youtube. Non-video advertisements are simple, yeet effective. The best part? They are more affordable than YouTube’s paid video advertising.

Display and discovery ads:

These ads show up to the right of featured videos for desktop users. Display ads will be right above the suggested videos list or below for larger players. Discovery ads will show up as promoted videos in the suggestions or Youtube search engine.

Overlay ads:

Overlay ads are the transparent banner pop-ups that show up at the bottom of videos. They can easily be exited out of and are only displayed to desktop users.

Sponsored cards:

Sponsored cards are the only non-video ads that show up for mobile and desktop users. These cards display content on the user’s video screen for a short period of time.

How Youtube advertising works

Here’s the truth:

Running a successful Youtube advertising campaign takes time and proper know-how.

If you’re trying to drive the best results for your business, you need the right team working on it. Or, if you’re flying solo, you’ll need to know how to execute your campaign properly.

The first step is creating a quality ad. You may have the best target audience and a huge budget, but you won’t get an ROI without a quality ad.

A quality Youtube video advertisement should do two main things; build curiosity and offer value.

Here are some simple steps to get you on the right track:

1.   Plan your budget.

After you decide on what Youtube advertising options you want to use, you need to calculate how much a view is worth to your company. You may need to run some test campaigns to figure this out. Once you find your ad conversion rate, you can figure out a longer-term budget.

In simple words:

Estimate your return before you start investing full-scale.

2.   Determine your target audience.

If your ads aren’t reaching the audience — you might as well throw the whole campaign out of the window. Youtube allows you to filter through a specific audience to get you the best results.

Here are some filters Youtube enables:

  • Demographic groups: You can target specific genders and age groups.
  • Keywords: Google and Youtube allow you to filter through people that search for relevant keywords to your niche.
  • Interests: Choose the topics of videos that your audience has in their watch history.
  • Remarketing: Advertise to people that have watched your videos in the past.

3.   Have a compelling call to action.

Your CTA is vital to converting an audience member to a real potential client. The CTA needs to be something that will motivate the audience to act instead of just being part of your campaign’s bounce rate.

The idea is to motivate the audience to engage with you by contacting you or offering a low-barrier to entry value.

4.   Prepare a relevant landing page.

Once you’ve captured your audience and you have them on the hook, you need to have a place for them to go.

A relevant landing page should direct your leads to a place where they can learn more about your product, service, and business.

5.   Track your campaign’s metrics.

Don’t just launch your Youtube ad campaign and close your eyes. Your first campaign strategy might not bring you the best results. That’s why Youtube lets users analyze views, likes, shares, subscriptions, and real-time insights.

After analyzation, you can tweak things to optimize your results and generate more leads.

How to optimize your Youtube advertising for the best ROI

The #1 cause of a Youtube advertising campaign failing is due to the lack of attention to optimization.

When starting, there’s almost always something you can alter to improve your results. And until you discover the ultimate strategy to get the best ROI in your niche, you need to be making changes.

The key to successfully optimizing your campaign is reviewing your campaign’s metrics and knowing how to read them. Youtube and Google offer a long list of metrics to analyze. This list full of important Adwords statistics tells you exactly how the audience is receiving your ads.

The two most important metrics to analyze are the ‘View Rate’ and the ‘Click-through Rate.

View rate:

A poor view rate usually signals to two major issues with your campaign:

  1. You’re not targeting the right audience.
  2. Your video advertisement isn’t compelling enough.

If you achieve a good view rate, Google will actually help you win more ad bidding auctions, ensuring a lower CPV (cost per view).

Click-through rate:

If you have a high CTR, chances are your campaign is doing pretty good.

A low CTR could be diagnosing these 2 major issues:

  1. You’re targeting the wrong audience.
  2. Your campaign is suffering from a weak call to action.

The cure for a low CTR is to change out your targeted keywords or demographic and create a more compelling CTA.

Get rid of what doesn’t work and scale-up what does.

Monitor all of your Ad groups and get rid of the ones that aren’t performing well. If they’re not performing well, they’re just wasting more of your money.


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Then analyze your Ad groups that are doing the best. If you have an Ad group that is excessively out-performing your others, go to the ‘Max CPV’ section and increase your bid. When you discover a winning Ad, its time to scale your spending on that ad so you can reap the benefits. Just don’t forget to evaluate every so often so your audience always has fresh, engaging content.

Need help with your Youtube advertising campaign?

Not only has Youtube become one of the most visited places on the internet, but it has also created a massive opportunity for marketers. As OTT (over-the-top) TV takes over, Youtube is among the top companies leading the way to capture the most specialized niche audiences ever.

And the best part?

We have access to target these special audiences to optimize an insane ROI with budget-friendly Youtube advertising rates.

We understand that Youtube advertising can be a lot to take in. That is why we recommend hiring professionals like us.

Are you ready to generate more leads for your business with a Youtube ad campaign? Contact us today to take your business to the next level. Receive your free media kit and review our case studies today.