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Why YouTube Advertising is Trending among Businesses and How it Works?

Par Reda EL GHOMARI Publié le 08/06/2019 à 13:24:55 Noter cet article:
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When the Internet was developed a few decades ago, it was hardly anticipated that it can completely transform the world into something we are living in today. At present, the internet has become an imperative part of the lives of many individuals throughout the world. By using it, people can perform a variety of tasks while sitting conveniently at their homes such as shopping, paying bills, banking, entertainment, getting an education and so on.

Internet and online platforms are widely popular not only among individuals but businesses too. In fact, more and more businesses are focusing on online platforms to augment their business activities especially sales and branding. With the use of certain online platforms, businesses can reach their potential customers, enhance their brand awareness and eventually derive sales, which is their ultimate motive. One such online platform is YouTube, which is the biggest video-sharing website in the world. Businesses can create advertising campaigns on YouTube to promote their products and services.

Why Advertising On YouTube is Advantageous?

There are multiple reasons for businesses to make YouTube a part of their digital marketing strategy. Firstly, it is widely accepted that video ads are more effective than text and image ads. Secondly, it is easy for businesses to advertise themselves effectively on YouTube and the process of creating and running the YouTube advertisement campaign is pretty straightforward. In addition, YouTube advertising is affordable when compared to some other major platforms like TV commercials, which requires thousands of dollars to secure a 30-second spot for displaying the video advertisement.

However, affordability of YouTube ad campaigns doesn't imply that it solely for small businesses that have low advertisement budget. In reality, the engagement of viewers with the advertisement is exceedingly impressive in the case of YouTube. As a result, many large scale companies and businesses are using it and will continue to do so in the future also. Indeed, many users claim that managing ads on YouTube is undemanding and the platform itself stands among the best when it comes to video advertising.

Among search engines, YouTube is the 2nd most popular search engine after Google. Prospects often log in to the video-sharing website to find information on the products and service that they need. In addition, they also search for product testimonials, tutorials, and brands that offer trustworthy products. Businesses can use this as an advantage and advertise their products/service to increase their brand awareness via YouTube.

Types of Video Advertisements Offered by YouTube

The advertising service offered by YouTube is flexible and allows businesses to create a customized ad campaign. In addition, users or businesses have the choice to select a particular type of ad format to roll their ads during the video playback. Each ad format is somewhat different from others but the ultimate objective remains the same, which is to make the viewer aware of the product or service of the business and generate leads. For video ads, YouTube has three different formats that are:

TrueView Ads (In-Stream and In-Display/Discovery Ads)

Acting as the most common YouTube video ad type, the TrueView Ads can be further classified into two types that are namely, in-stream and in-display ads. Talking about the in-display or discovery ads, these ads usually appear either on YouTube’s homepage or within the search results. In addition, in-display ads also get served in the related videos section. One important thing to notice about in-display or discovery ads is that a view is registered only when someone clicks the ad to see the promotional video.

The in-stream ads are different from the in-display ads in the way that these ads pop up before the video selected by the viewer starts playing. In-stream ads are skippable and the YouTube guidelines recommend their duration to be in between 12 seconds and 6 minutes. Usually, viewers can skip in-stream ad videos after watching them for 5 seconds. The advertising fee is charged from the advertiser only when the user views the advertisement for at least 30 seconds or interacts with the video by clicking on the call-to-action.

Preroll Ads

Pre-roll ads are in-stream ads that are unskippable and displayed before, during or after the main YouTube video. YouTube recommends that the length of Preroll ads must be in the range of 15 to 20 seconds. As, the Preroll ads follows pay-per-click (PPC) pricing, these costs lesser to the advertiser as compared to the TrueView Ads. However, the slots for pre-roll advertising are limited and businesses need to make sure that their Preroll ads are effective enough to persuade the potential customer.

Bumper Ads

The third video advertisement offered by YouTube is the Bumper advertisement. These are 6-seconds long ad videos that play before the main video and are suitable for making the viewer aware of a new product or an event. The Bumper ads are unskippable like the Preroll ads but their basic intent of brand awareness matches to that of the TrueView Ads. Bumper ads are a cost-effective way to reach your target. Even if 6 seconds is pretty limited amount of time, they are usually enough to make someone aware of a new product without going deeply in the details.

How to Initiate a Video Advertising Campaign on YouTube?

One of the best things about YouTube advertising is that starting a new ad campaign is simple and businesses can do it pretty easily without requiring any professional skills. By using the YouTube ad campaign, businesses not only aware prospects about their products and services but also improves their brand visibility. Here are some basic steps required for initializing a video advertisement campaign on YouTube:

1. Upload Video to YouTube

The foremost thing to do while planning for an advertisement campaign on YouTube is to upload the video on YouTube. The uploaded video will serve as the ad video and may promote a product/service/event of the business. To upload the video, users need to open the YouTube Studio, which is accessible through the profile icon located on the upper left corner of the YouTube’s online portal.

2. Create an Account on Google Ads

In the next step, the user or business needs to create an account on Google Ads, which is Google’s official advertising platform. To sign in and start creating a new advertising campaign, a Google account will be required. After successfully signing in to the Google Ads and adding payment information, users can create a new campaign.

3. Campaign Settings

Within the campaigns, there are 6 different campaign options namely, Search, Display, Shopping, Video, App and Smart. For YouTube, businesses have to choose the Video campaign option to start promoting their videos. Within the campaign settings, users need to provide information and set parameters for the campaign such as language, the budget for the campaign, duration of the campaign, specific location of the audience that needs to be targeted, etc. Selecting a location is of prime importance because if the business is advertising in a region where it does not deliver its products or services then the advertising campaign will be unrewarding. Thus, it is advisable to give careful thought on the selection of the location.

4. Ad Group Settings

This section is quite important while setting up the advertisement campaign. Choosing a name for the campaign and setting up a budget may be an easy task but the selection of the target audience is fairly difficult especially if no research has been done beforehand. Moreover, the selection of the target audience is one of the major factors that decide the success of the ad campaign. Without going further into the minute details, there are a lot of options to customize within the ad group settings that include demographics, audiences, and keywords.

5. Ready to Roll

After setting up the YouTube video advertisement campaign successfully, the video provided by the user will be promoted across the YouTube platform. In general, the ad video will be served to the viewers that have been prioritized in the campaign settings. Eventually, businesses can get leads and increase their brand awareness among potential customers. Youtube provide a powerful reporting which will provide informations about the reach of the campaign, the number of leads acquired (using Google Analytics), the percentage of video watched in average and many more metrics that you can use to take decisions.

Strategy is the Key for a Successful Campaign

Before initiating a YouTube video advertisement campaign, it is really important to devise a strategy for all the steps involved. First of all, it should be clear that what business wants to promote through the video campaign. Whether the motive is to enhance brand awareness or to increase sales or introduce a new product, it is important to identify the key objective of the ad campaign. Additionally, by knowing the purpose of the campaign, an effective advertising video can be created that can deliver the results that the business wants.

In addition, the strategy for YouTube ad campaign also requires detailed research on factors that can help to know things like, who will be the target audience and what geographic area need to be targeted, etc. Many successful businesses who are using YouTube video advertisements campaign for some time now suggests that the YouTube advertising strategy is more important than the content in the video advertisement. If a business misses targeting the right audience then the chances of the failure of the campaign increase manifold.

As YouTube advertising offers regular reporting option, businesses can track the effectiveness of their video ads. They can monitor factors like how many people viewed the ad, what is the average duration of the ad watched by the users, what actions viewers usually take while/after watching the video advertisement, etc. By keeping a constant eye on the performance of the running YouTube video advertising campaigns, businesses can create more effective campaigns in the future.

Summary

As digital marketing has become a crucial part of all modern businesses, YouTube advertising acts as a valuable tool for promoting businesses. With video ads being the most effective among the other types, many businesses have already made YouTube video advertising campaigns a major part of their marketing strategy. YouTube video advertising has become quite popular among modern-day business because it is easy to create and manage campaigns and is much affordable than other video advertising campaigns like TV commercials. However, it is important for any business to strategize their YouTube video ad campaign beforehand to get the desired outcome.

Reference Links: (Bibliography)

  • https://dashtwo.com/blog/different-youtube-ads/

  • https://www.disruptiveadvertising.com/video-advertising/youtube-advertising/

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