YouTube is the world’s second-largest search engine — only behind Google. In addition, video content receives the highest engagement rates from viewers. This translates to YouTube ads being a possible gold mine for certain advertisers. It’s important to note that YouTube ads may not work for everyone, and some industries may be better offer putting their marketing budgets into other media channels.
YouTube users are predominately male, and skew younger — 81 percent of American 15 to 25-year-olds use the platform. Millennials prefer watching YouTube content two to one over traditional TV showings. The video giant is diverse in content and information — today, the platform can be used to find insight on nearly any topic or subject. YouTube is commonly used for entertainment and educational learning of all types. With over 30 million daily active users, over 2 billion monthly users, the platform is full of potential lead opportunities for businesses.
As mentioned above, a business needs to perform its due diligence during their market research phase. While YouTube ad views average only $0.06 per click, a small price compared to the average Google PPC ad, the platform still needs to be one that your target audience consistently uses. It makes little sense to dump money into YouTube if your consumers do not live in that digital environment.
4 Main YouTube Ads
YouTube offers advertisers four main types of ads, giving businesses a variety of video and display ads to test out with viewers.
Pre-Roll Video Ads
Pre-roll ads are often the most cost-effective way to run YouTube ads. This ad type is only charged to your account for each click your ad receives. Pre-roll ads run for 15 to 30 seconds before the desired video of the YouTube consumer and are not skippable.
In-stream ads are shown before a normal YouTube video and are skippable after five seconds of viewing. These ads are paid per view, even if the user only watches for a minimum of five seconds.
Sometimes shorter is sweeter. Bumper ads allow you to create ads only six seconds long. This gives you the opportunity to entice the viewer without boring them with longer ad types. Bumper ads are also not skippable.
In-display ads sit on the right side of the main video viewing screen. They are priced per view, by each link clicked. Therefore, for each individual that clicks on your display ad, you will be charged, but theoretically, you have a higher chance to convert that viewer as well.