Google’s ownership of YouTube has become increasingly profitable. YouTube is the second largest search engine in the U.S. and they say they have “over a billion users — almost one-third of all people on the Internet — and every day people watch hundreds of millions of hours on YouTube and generate billions of views.”
YouTube adds are one of the most powerful types of advertising today. Video content captures a viewer’s attention and influences their decision-making. Let’s explore what type of advertising you can do in YouTube.
A display ad is placed above the list results when a user searches in the YouTube search bar. It is also displayed next to a video in the right column, or if the viewer is large, it is displayed below the viewer.
Because display ads are not directly in the video, they are less noticeable and may not see as much traffic. Advertisers are charged whenever the ad is clicked, whether the user watches the whole video or not.
Display ads are available through AdWords, or as part of a reservation sponsorship campaign which has minimum spending requirements and is charged on a cost-per-impression or cost-per-day basis.
The display ad to the right of the search results in the sidebar, are often from AdWords remarketing campaigns. Google’s ad algorithm is used to determine which display ads to show. In the case of remarketing, the user has already visited that Website, expressing an interest in that content. The user has been ‘tagged’ through cookies, and the ad is served. YouTube is in the Google display network thus display advertisers in AdWords can also have their ads shown on YouTube.
As an example, the YouTube search result below was for the phrase ‘election’:
Overlay ads display in the lower portion of a YouTube video. They are semi-transparent and the user can close them or click on them. Since these ads are displayed over the actual video, they are more likely to be clicked. Overlay ads are only available through a reservation sponsorship campaign as mentioned under display ads.
Skippable and Non-skippable Video Ads
Skippable video ads are very popular and are becoming the most common type of YouTube advertising. The beauty of skippable ads is that you allow the user to skip the ad after 5 seconds, or continue watching if they’re interested in learning more. These are also known as pre-roll ads.
When you give people the option to skip or stay, the ones that actually watch the video are called “warm leads” which means your return on investment will be greater. Non-skippable ads work the same way, but the user must watch in order to view the intended video content.
Skippable ads can be up to 60 seconds long and are not charged until after 30 seconds of viewing or when there is interaction with the video. They play before, during or after a video.
Non-skippable ads must be 30 seconds or less. YouTube or AdWords decides how much you will be charged based on the competition for a specific keyword, placement or demographic. Cost may run at a few cents per view to more than a dollar.
YouTube and AdWords are now using what is called a TrueView video campaign system that makes all of these types of advertising reach an even more targeted audience which creates an even greater return on investment.