Benefits and cost of advertising on YouTube. Setting up an advertising campaign

YouTube is the most popular video hosting in the world, with a total audience of more than a billion people. Today, more and more people are replacing TV with watching YouTube channels. This large virtual marketplace has become an ideal place to monetize content. And every year it attracts thousands of new entrepreneurs.

YouTube or TV

You may be skeptical about YouTube video ads, but the facts remain the facts. This Internet resource has much more advantages for displaying video ads than TV.

  • High conversion and interactivity. Many entrepreneurs report high conversion rates for YouTube video ads, which can be as high as 25%. Unlike watching ads on TV, the viewer has the opportunity to go to the company’s website in one click, the link to which is placed in the video.
  • High return on investment (ROI). According to a study conducted by Google from 2013 to 2016, the return on investment in YouTube ads is 80% higher than the return on investment in TV ads.
  • Extensive targeting options. Unlike TV, YouTube allows you to customize your video ads to your target audience as clearly as possible, thereby reducing additional costs.
  • Flexibility in editing display settings. YouTube allows you to quickly adjust the settings for displaying ads, which cannot be said about TV, where such settings are generally impossible to do.

Setting up an advertising campaign

Despite all the benefits that YouTube gives to entrepreneurs, you need to take the organization of an advertising campaign responsibly.

First of all, you need to decide on its purpose. What do you need to do? Sell ​​more new items? Report a new promotion? Or increase emotional trust in the brand? Having decided on the goal, you need to create, together with the video studio, a video that will best suit the task.

The next step is the formation of a portrait of the client, the target audience. In this regard, it is important to determine not only age, gender, geolocation, interests, but also remember such concepts as remarketing, targeting by channels, topics, keywords, devices. The most specific portrait of the audience improves the effectiveness of advertising.

Видеореклама на YouTube

How and where are the shows made?

YouTube has several options for displaying video ads. You can choose one or all at once.

Pre-roll (in-steam). Your promotional video is shown before the main video that the viewer turned on.
Recommended video (in-display). Your video appears in the list of recommendations to the right of the main video.
Video in search (in-search). YouTube recommends your video to the top of the search results for the term you’ve targeted.

Price

This is, as usual, the most important question, but it cannot be clearly answered. Each advertising campaign is configured uniquely. The cost of impressions depends on the number of video views that you want to receive per unit of time. The budget is calculated after the target audience is determined. You decide how much you are willing to pay for advertising for a specific audience. Based on this, it will become clear how much audience can be covered.

A huge advantage of YouTube video ads is that you won’t be charged for unfinished views. If the user missed the video without watching it at least half (or at least 30 seconds), then such viewing will not be counted. This, by the way, is another plus compared to TV.

Conclusions

Showing video ads on YouTube is more profitable and effective than on TV in many ways. This is a great opportunity to improve the reputation of the brand and find new customers for relatively modest money.