Whether you realize it or not, more advertisers are allocating part of their advertising budget toward YouTube. In fact, the number of advertisers running video ads on YouTube is up 40% year over year.
Why is this happening? Well, there are several reasons:
- The amount of users who actively use YouTube is insane. Not only is it the second largest search engine (behind Google, of course) but YouTube also has over 1 billion users…1 billion. In addition, YouTube reaches more 18 to 49 year olds than cable television. So, long story short, your audience is most likely there.
- Advertisers are shifting budget from TV and other traditional media because it’s difficult to track/measure, it’s very expensive, and many times the advertisements are not even seen, since TV viewers are changing channels during commercials or using DVR to skip them completely.
- Alternatively, YouTube video ads have the opposite characteristics mentioned above; there’s an easier way to see user engagement with your ad and measure its effectiveness when compared to TV advertising. In fact, YouTube will provide Brand Lift studies to show the impact of your video advertising on your brand in terms of brand awareness and brand recall. In addition, it’s very affordable with average cost per views (CPVs) around $0.10. Finally, you only pay if the user watches 30 seconds of your video ad (or the entire video if less than 30 seconds). So, if users opt to skip the ad, you don’t pay!
Now, enough about the WHY – it’s time to determine if YouTube Video Ads are right for your organization. YouTube advertising is definitely not right for everyone, just like TV advertising is not either. It’s also important to understand that YouTube advertising and search engine advertising are VERY different. So, if your marketing budget is already limited and you’re not exhausting search impression share, you might want to focus your budget on search (but this all depends on your goals).
Below are a couple of indicators that YouTube Advertising is right for your business:
- You are already investing in display advertising and paid social adverting such as Facebook and Twitter ads. YouTube advertising is a great complement to your display and paid social advertising efforts.
- You are already running traditional advertising like TV and radio. You should definitely allocate some budget towards YouTube advertising to compare the cost-effectiveness of each channel.
- You have a new product or service or are a new company and you’d like to get the word out to a specific market with specific interests. YouTube ads are an easy, affordable, and effective method of doing so.
- You have a complex product or service than can better be explained to your potential customers with a short video.
- For the most part, YouTube ads are a better play and more effective for B2C rather than B2B. It’s simply more difficult to target B2B users as they usually have a smaller target audience compared to most B2C companies.
As a company and advertiser it’s important to understand the value and importance of brand awareness and brand recall to prospective and current customers. If this describes you and your company, then YouTube video advertising is definitely something to consider. YouTube ads provide a cost-effective, performance-based way to see how many viewers watched your video, and the outcome from the user’s exposure to your brand.