When you watch YouTube videos, you often see advertisements. This can be a bit of a concern as it automatically plays before, during, or after the video you’re watching, or a list of advertisements is displayed between the video lists. As an advertiser, you may want to try placing an ad.
This time, we will provide an easy-to-understand explanation of the basics such as the characteristics of YouTube ads, the background behind their attention, types of ads, and how to post them.
What is YouTube advertising?
YouTube ads are advertisements that can be placed on YouTube. The focus is on videos, but there are also some banner image advertisements.
Unlike traditional
Internet
advertising such as listing ads and display ads, it allows you to approach users in the form of videos within YouTube, a medium with a large number of users.
In addition, to place YouTube ads, configure settings on the Google Ads management screen. If you are already using Google Ads, you can log in and upload YouTube video ads from the management screen.
Background to the increasing attention
YouTube videos have been gaining attention in recent years. The background to this is the expansion of the video advertising market. There are video distribution
platforms
other than YouTube, and many video advertisements are distributed.
The biggest feature of videos is that they can convey more information in a shorter amount of time than advertisements that only contain text or images. Videos have a very strong impact and can leave a strong impression on users.
Additionally, the usage rate of YouTube itself is increasing in Japan. According to the Ministry of Internal Affairs and Communications’ Information and Communication Policy Research Institute’s `
`Survey Report on Information and Communication Media Usage Time and Information Behavior in 2020
,” the usage rate of YouTube is extremely high compared to other SNS, and among all age groups. It has been found that 85.2% of people use it, and more than 90% of people in their teens to 40s use it.
YouTube advertising will continue to become popular as the video advertising market is growing and YouTube is a medium with a large number of users.
Features and benefits of YouTube advertising
YouTube advertising is also used by advertisers because of its many advantages. Here we will introduce the main features.
Can reach many users
As mentioned above, the usage rate of YouTube is extremely high, and the great strength of YouTube ads is that they can reach a large number of users. One of its strengths is that it can reach a wide range of age groups, from teenagers to people in their 60s.
Many types of targeting
YouTube ads can perform various
targeting
using Google data. There are two main targeting methods. “Audience targeting” narrows down the target based on “people”, and “content targeting” narrows down the target based on “content” to deliver advertisements.
Audience targeting includes items such as age, gender, household income, parental status, employment status, user interests, purchase intent, and marital status.
Content targeting includes items such as destination videos, channels, websites, topics, specified keywords, and devices. These can be specified in detail for targeting.
When submitting YouTube ads, adjusting each targeting type to suit your purpose will help your ads achieve better results.
Easy to verify effectiveness
Another feature of YouTube ads is that it is easy to verify the effectiveness of ads using the ad management screen called YouTube Studio.
With YouTube Studio, you can check the distribution status at any time, and quantitatively check the behavior of users who viewed the video, such as the number of impressions, which indicates the number of ad views, the number of views, playback time, and number of clicks.
After distributing a video ad, you can check specific metrics, so if you analyze the data and review your creatives and targets, you may be able to further improve your results.
You can also adjust your bid based on the delivery status and stop ads that are not performing well.
Challenges and disadvantages of YouTube advertising
Even the best and most useful YouTube ads come with some challenges. Therefore, it is important to know not only the advantages but also the disadvantages.
Many users skip ads immediately and do not watch them.
Many people have experienced skipping advertisements that appear while watching YouTube videos. The same goes for other users. In other words, YouTube video ads are often skipped.
YouTube ads include ads that users can skip and ads that are not skippable. Skippable ads are those that can be skipped within 5 seconds from the start of playback, and have the disadvantage of making it difficult for advertisers to fully promote their products and services.
If the quality of the advertisement is low, it will give a negative impression to the users.
As mentioned above, users may not be willing to actively watch video ads. Therefore, YouTube ads must be created taking into consideration the possibility that users may find them intrusive.
In addition, if the quality of the advertisement is too low or if it contains unpleasant content, it may lead to negative evaluations. It is best to keep in mind that distributing low-quality YouTube ads may actually give a bad impression to users.
Explaining 6 types of YouTube video ad formats
There are six different formats for YouTube video ads. Let’s introduce these six types in detail.
Source:
YouTube Help “Overview of video ad formats”
1. Skippable in-stream ads
In-stream ads are video ads that appear before, during, or after a YouTube video is played. There are two types of in-stream ads: those that users can skip on their own and those that cannot.
For skippable in-stream ads, you can click the skip button 5 seconds after the video starts playing, allowing you to stop playing the ad video.
If the user does not press the skip button, the ad will play until the end. This means that users can watch your video for 5 seconds.
2. Non-skippable in-stream ads
Non-skippable in-stream ads are video ads that users cannot skip. The length of the video is 15 seconds or less, and it will automatically play before, during, and after playing the YouTube video.
Users cannot skip videos, so advertisers benefit from having users watch their video ads until the end.
3. In-feed video ads
In-feed video ads are video ads that are displayed in a position that is easily visible when searching for video content on YouTube or choosing the next video to watch. The thumbnail and text of the advertising video will be displayed next to related videos on YouTube, on the search results screen within YouTube, on the top page of YouTube mobile, etc.
Typically, when a user clicks on a video, it plays on the channel’s home page.
4. Bumper ads
Bumper ads are short videos that are less than 6 seconds long. An advertisement video of up to 6 seconds will be played before, during, or after the YouTube video is played.
Bumper ad videos cannot be skipped. Since it is a short video, you can be sure that it will be seen, and it can also make an impact. In other words, this is an opportunity for you to be recognized by a wide range of users.
5. Outstream advertising
Outstream ads are ads that are not served within YouTube. These are mobile-only ads that are displayed only on the websites and apps of publishers (distributors) called Google Video Partners that meet Google’s quality standards.
Outstream ads start playing without audio and unmute when the user taps it.
If your company’s target group includes many mobile users, this can be an effective means of advertising.
6. Masthead advertising
Masthead ads are ads that appear on the home page of YouTube. Because it attracts a lot of attention, it is suitable for posting when you want to increase awareness of new products or services such as sales campaigns, or when you want to appeal to a large number of targets in a short period of time.
On YouTube, the audio will automatically play for up to 30 seconds with the audio turned off, and when the user clicks the mute icon, the audio will play.
Image ads, campaign ads, YouTube short ads
YouTube ads include not only regular video ads, but also image ads, campaign ads, and short video ads called YouTube Shorts. Let’s check the details.
overlay ads
Overlay ads are the only type of YouTube ads that can be delivered using still images or text. The location is the bottom 20% of the YouTube video playback screen.
Overlay ads are only compatible with computers and have a size of 468 x 60 pixels or 728 x 90 pixels.
Overlay ads appear while users are watching a video. The ads are displayed in a less intrusive location, and users can remove the ads themselves, making it less stressful for users. Therefore, it can be said that it is a form of advertising that is difficult to leave a bad impression on.
The advantage for advertisers is that they don’t have to create video ads, so they can easily use YouTube ads without spending a lot of money or time. Suitable if you want to reach more users with your ads.
Video action campaign
Video Action Campaign is a service that allows you to distribute video ads across YouTube and other locations using one automated campaign.
Video is said to be a cost-effective way to drive conversions for businesses, services, and products. It is also ideal when you want to expand the scale of your campaign.
Specifically, you can use ad space from YouTube home feed, YouTube video playback page, Google video partners, etc.
YouTube short video ads
YouTube Shorts are a group of videos with a maximum length of 60 seconds that were launched in September 2020. From May 2022, it will be possible to distribute advertisements even within the YouTube Shorts frame. When a user scrolls through a short video, an advertising video appears and plays automatically. This system allows you to reach a large number of users.
The posting method is the same as other YouTube video ads. However, YouTube Shorts ads will not be displayed on computers and will only be delivered on mobile devices. Additionally, as of February 2023, it is not possible to select distribution of YouTube Shorts alone.
YouTube advertising fees/costs
We have introduced the format of YouTube ads so far, but many of you may be wondering about the actual pricing structure. Therefore, we will provide an overview of costs and billing formats.
First, billing methods vary depending on the type of ad format. The following types of billing methods are available:
In addition to this, there is also a form such as “Target
” that automatically adjusts the bid price so that the CPA matches the target number.
Let’s check the billing format for each type of YouTube ad introduced earlier.
Skipable in-stream ads are CPV
The billing method for skippable in-stream ads is “CPV”.
If any of the above applies, it will be considered that the video has been viewed once, and you will be charged for one viewing.
Non-skippable in-stream ads are CPM
The billing method for non-skippable in-stream ads is “CPM”. You are charged based on the number of times your ad is viewed.
In-feed video ads are CPC
The billing method for in-feed video ads is “CPC”. You are only charged when a user views your ad by clicking on your ad thumbnail.
In addition, CPD was previously used for masthead advertising, but as of February 2023, it has been changed to CPM, CPH (Cost Per Hour), etc.
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YouTube ad distribution flow
We will introduce the general flow of how YouTube video advertisements can be distributed.
1. Upload the video to your YouTube channel
First, create an advertising video and upload it to your company’s official YouTube channel. In addition to YouTube’s post management screen, you can also upload from the YouTube app on your smartphone.
2. Set up a video campaign with Google Ads
Next, configure ad distribution settings from the Google Ads management screen. To use YouTube ads or Google ads, you need a Google ads account. Once you have an account, log in and create a new YouTube video ad campaign.
3. Set the goals you want to achieve, bidding strategy, and targeting
Google Ads allows you to set goals, bidding strategies, and targeting for ad distribution. Let’s also set up YouTube ads.
Goal you want to achieve
Decide on the goals you want to achieve. For example, if you’re running a skippable in-stream ad, you can choose from Sales, Lead Generation, Website Traffic, Product and Brand Comparison, and Brand Awareness and
Reach
.
It is also possible to create a campaign without specifying a goal.
bidding strategy
A bidding strategy is how you use your budget. The options available for each ad vary, so choose the one that best suits your advertising purpose.
targeting
As mentioned above, YouTube ads allow you to specify your targeting in detail. There are two types of targeting: “Audience targeting” and “Content targeting”.
You can reach specific users using a variety of targeting methods, including demographic groups, interests, and geographies. By configuring settings that match the purpose of ad distribution and targeting, you will be able to achieve better results.
4. Specify the video to be distributed
After configuring the campaign details, specify which videos will be distributed as advertisements. Select and specify the advertising video you created from video search.
5. Distribution starts after passing the review
The videos and landing pages you specify will be reviewed by Google. In most cases, the review process takes from several hours to several days.
If your ad fails Google’s review, it will be given a “disapproved” status, and the reason for the failed review will be displayed on the ad management screen. The criteria for review is whether or not it violates Google Ads policies.
When creating advertising videos, please be sure to fully understand Google Ads policies.
YouTube advertising success story
There are many examples of YouTube advertising being highly effective. Here are four examples of successful YouTube advertising.
Sunglasses brand specializing in online sales expands approximately 10 times in size
A sunglasses brand that only sells online ran a YouTube advertising campaign and was able to increase its business by approximately 10x in three months.
The sunglasses brand used TrueView action ads to showcase their products. TrueView stands for skippable ads. After one video went viral, it was viewed 65 million times and the brand became famous.
The number of website visitors increased by 1,500%, conversions increased by 1,300%, and sales revenue increased by 13 times compared to the previous year.
A small fabric store significantly expands the size of the company
A quilt fabric retailer was able to significantly expand its business through YouTube advertising. The company now has about 400 employees and ships more than 5,000 items a day, making it one of the world’s largest companies in the industry.
On YouTube, after releasing quilting tutorial videos that are not advertisements, the company became recognized by quilting enthusiasts. After that, we created video ads to reach potential customers and distributed YouTube ads, which resulted in over 1 million potential customers. It seems that they achieved over 14,000 online sales within 6 months of posting the video ad.
Contributing to promoting flight bookings for airlines
One airline planned to use remarketing to re-engage users who searched for flights and encourage them to buy tickets. Using YouTube Ads’ TrueView action, we streamed a 15-second video of people enjoying a vacation amidst spectacular scenery. Used an effective “call to action” to drive users directly to the site.
As a result of distributing video ads, the number of flight reservations exceeded approximately 17,000. Of all conversions from YouTube, 52% were click-through conversions that occurred directly from ads.
Chocolate manufacturing company searches and purchase intent increase
A global chocolate manufacturer used YouTube advertising to increase purchase rates during the Christmas season. When releasing limited edition products, we collaborated with creators who are highly influential on YouTube.
To find creators, use Google’s own branded content platform YouTube BrandConnect. We created creator-driven branded content and short bumper ad videos featuring popular YouTube baking creators. As a result, searches increased by 551% and purchase intent increased by 22%.
Steps to create a successful YouTube advertising video
In order to get results from posting YouTube ads, you need to create videos that are highly effective. So, what makes a highly effective video?
Generally, advertising videos are created as follows.
1. Decide on an advertising concept
2. Decide on the video structure
3. Prepare for casting and filming
4. Take a photo
5. Edit
The most important thing is the initial concept design. We will firmly establish the target and concept you want to reach with your YouTube ad. By doing so, you will be able to create a video that does not blur as you intended.
Even when deciding on the structure of the video, you want to make sure that the content resonates with your target audience without making any compromises. Please consider creating a video that prevents skips in the composition part.
Once the concept of the ad and the structure of the video have been decided, the next step is to prepare for casting and filming, then shoot and edit.
summary
YouTube advertisements are advertisements that can be posted on YouTube, mainly videos, but also some banner image advertisements. While there are advantages such as being able to reach a large number of users, many types of targeting, and ease of verifying effectiveness, there are also disadvantages such as many users skipping ads and negative impressions may be strengthened if the quality of the ads is low. , caution is required.
Please check the distribution procedures and types of advertisements that we have talked about this time, and choose the method that best suits your company’s objectives. Think carefully to make sure your YouTube ads are effective.