Deciding where to place your video ad dollars can be overwhelming. Facebook, Instagram, Twitter, Google Adwords, Bing, Yahoo, television—the list is endless. But here’s the thing: there’s only one platform that remains the video king.
Let’s dive into the world of YouTube advertising and see how it could be your business’ big break.
First things, first.
If you believe YouTube is a millennial wasteland full of cute cats and prank videos—you’re right. But it’s not ONLY that. It’s also an incredibly powerful tool for businesses. Because EVERYONE’S target audience is on YouTube.
Here are a few statistics found by Google that may help you press play:
- In an average month, 18+ year olds in the United States spend more time watching YouTube than any television network.
- On mobile alone 18- to 49-year-olds watch YouTube during prime time in the United States than they do the top 10 prime-time show combined.
- Over the last two years, the number of small- to medium-sized businesses advertising on YouTube has doubled.
If your business doesn’t have a YouTube channel as you’re reading this, we suggest you sign up and start creating content. And when you need a little help with that part, you should definitely outsource it to a local video production company.
Tuft & Needle achieved unexpected success through Facebook video advertising when they started their matress company with only $6,000. They never had to guess where their money was going.
Low start up cost
Unlike Facebook and Instagram, YouTube’s ad pricing is based on a pay-per-click (PPC) system. You only pay when someone 1) engages with your video for 30 seconds or more 2) clicks a call-to-action overlay or 3) clicks a companion banner. If your video isn’t receiving any engagement, you’re not out any precious ad dollars.
Google, YouTube’s parent company, allows you to set a daily budget with incentives for increasing your spending. According to YouTube, a $10 daily budget is common for small local campaigns. The best part? You can adjust your spending immediately, in case it’s getting a little tight or you have room to increase your potential.
Hitting the bullseye on your target audience
On other platforms, it can be unclear whether or not your video is truly being seen by the right people. YouTube puts your video in front of the best audience before the metrics roll in. Here are a few of the key parameters they use to make sure your efforts don’t go unseen.
Whether you’re a local mom and pop ice cream shop or an international fashion brand, YouTube let’s you target your audience based on where they live and how far they might travel to visit you.
Maybe you sell luxury baby clothes or men’s organic shaving cream. YouTube advertising let’s you distinguish between mothers making $100,000+ per year and 18+ males who make $35,000-$55,000. Yes, they even use public information from the IRS to estimate average household income.
Age, gender, parental status and household incomes all play a role in people’s buying behaviors—YouTube has them covered.
Where your audience might surprise you, is their interests. YouTube may advertise in places that seem unfit but are actually closely related to your audience’s interests according to data. YouTube has three main audience types that you can hone to make sure you’re hitting your mark during critical micromoments (a term coined by Google that we’ve discussed on the blog before).
Here’s Google’s breakdown of these different audiences:
- Affinity audiences: Raise brand awareness and drive consideration with your video ads by reaching people who already have a strong interest in relevant topics.
- Custom affinity audiences: With custom affinity audiences, you can create audiences that are more tailored to your brands, compared to our broad, TV-like affinity audiences. For example, rather than reaching Sports Fans, a running shoe company may want to reach Avid Marathon Runners instead.
- In-market audiences: Select from these audiences to find customers who are researching products and actively considering buying a service or product like those you offer.
Video formats with a purpose
YouTube has three main types of video advertising formats with very distinct purposes. These formats include: TrueView in-stream ads, TrueView video discovery ads, and bumper ads. Don’t forget, that no matter what format you choose, the video has to be hosted on the platform.
Each format allows you to experiment with different video lengths, points of contact (search, related videos, before video display) with the viewer. And the best part? You still only pay when it’s effective. No engagement, no cost.
Read more about the different advertising formats and when to use them, here.
When Google does this much work to make YouTube advertising profitable for businesses of every size, all you have to worry about is telling your story. Seriously, consider the impact you could have putting your video in front of the best eyes at critical moments in their online experience with peace of mind that your video ad dollars are being used in the best way possible.