YouTube has been around for 17 years and has only continued to evolve. It is estimated that YouTube reaches almost one-third of the internet, with 81% of Americans using YouTube in 2021 alone. With so many eyes on a single website, why would you not want to get your brand’s name in front of them? While YouTube provides ample opportunity to reach your target audience, there are still many factors to consider before deciding whether or not YouTube marketing is suitable for your brand.
YouTube as a platform accounts for a vast amount of topics and content. As a result, it shouldn’t surprise that YouTube’s audience is pretty broad. 90% of American internet users aged 18-44 use this platform. The male audience accounts for 62% of YouTube’s viewing population, while female users account for 38%. Below is a breakdown of YouTube’s age demographics, which are pretty close to even throughout, confirming that their audience is not even close to a single set of demographics.
The cost of YouTube ads depends on a few factors, including watch time, audience targeting, and campaign objective. In most instances, you’ll pay every time someone views your video. To ensure you’re not overspending, it’s wise to set a maximum amount. On average, YouTube advertising costs are $0.10 to $0.30 per view or action, with an average daily budget of $10. Meaning every time someone views or engages with your ad, such as clicking on a call-to-action, you pay around $0.10 to $0.30. Additional factors that can determine YouTube ad costs are:
–Your Ad Type
–Your Bidding Selection
–Your Targeting Options
Based on the action your audience takes, ad payment options will vary. While you may pay for their view, you could also pay only after they’ve watched 30 seconds of your ad. Your targeted audience also impacts your ad spend. If your competitors are targeting the same audience, you may end up paying more based on the increased competition. It’s important to note that you will never go over your maximum bid if you win the best spot over your competitor–likely, you’ll only end up paying one cent more than your competitor.
As mentioned above, the ad type you determine affects how much you’ll spend. There are many ad types to choose from, each with different ways your audience can interact with them.
When watching a YouTube video, you can find display ads above the video suggestions list, located to the right of the video.
Overlay ads appear on the lower portion of your video. Your audience has the ability to ‘x’ out of these.
skippable or true-view in-stream ads
Skippable ads allow viewers to skip the video after 5 seconds via a button in the bottom right of the screen. They appear on the video the viewer is watching, taking up the video screen’s entirety. Depending on the length of the video, these may appear before, during, and after the content.
Just as the name suggests, viewers cannot skip these ads, making viewers watch the video ad in its entirety before viewing their desired content. Thankfully, these videos generally only last up to a few seconds. However, there are also long, non-skippable ads, which may last 30 seconds or longer and bumper ads, lasting up to 6 seconds long. Similar to skippable ads, non-skippable ads also take up the entire video screen and may appear before, during, and after the video content.
Sponsored cards display content that may be relevant to your video, such as products featured in it. This allows the viewer to see the products before watching the ad, acting as a brief teaser. Viewers can also click the icon in the top right of the video to browse these.
The most significant benefit of YouTube marketing by far is the reach potential. Since YouTube is an international company, it empowers brands worldwide to reach new geographies. The platform helps attract leads from different countries who speak the same language.
Additionally, YouTube videos appear in Google Search results, providing companies with increased visibility and the opportunity to attract new customers. To increase your ad’s chances of being viewed, optimizing keywords in titles, creating tutorials, commentary, product reviews, Q&A, and ‘top’ lists can allow businesses to have higher exposure and reach new audiences.
Lastly, viewers have a much different outlook on viewing ads via YouTube as opposed to television. Mobile ads on YouTube are 84% more likely than TV ads to hold a user’s attention. Additionally, 68% of YouTube users watch videos to help them make purchase decisions.
Any decision on behalf of your brand needs to be informed and logical. We hope that we’ve made your decision of whether or not to take advantage of YouTube marketing an easy one. Still have questions or need help taking the next step? Drop us a line or D.M. us on social @clevermethod. We’d be happy to offer a consultation or develop a social media marketing plan for you and your business.