YouTube is a developing video content platform that has been using by businesses to promote products, services, and brands. It is one of the most effective communication platforms, providing easy access to potential customers and boosting conversion rates. Follow this article if you want to learn about forms of advertising on YouTube.
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Why you should advertise on YouTube?
YouTube Ads is an online advertising method provided by Google for promoting products and services. To have ads appear on each YouTube video, businesses need to pay a fee to Google.
Typically, YouTube ads are displayed at various positions on YouTube videos: at the beginning, middle, or end. Additionally, YouTube Ads appear in various positions on the YouTube interface. When creating a YouTube Ads campaign, ads can appear on YouTube in formats such as videos, images, text banners,…
YouTube Ads costs depend on the type of ads that you choose when setting up the campaign. Usually it is calculated based on clicks and impressions. YouTube Ads are a cost-effective method with high customer reach.
As a platform with a massive user base comparable to Facebook and Google, YouTube has become a powerful advertising and communication platform. In addition, it allows advertisers to reach a large and diverse audience easily. Furthermore, businesses can target the right potential customers, as YouTube Ads are displayed to people who are interested in the products or services.
With various advertising formats on YouTube, advertisers have multiple options for displaying their ads. Additionally, this platform provides performance metrics to ensure budget investment is in the right place.
Compared to other methods, YouTube Ads offer a higher ROI of up to 80%. The flexible fee structure helps advertisers control their budgets effectively. YouTube ads boost interaction with potential customers and enhance brand awareness.
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Popular forms of advertising on YouTube
Currently, there are various forms of advertising on YouTube that provide businesses with many options to reach potential customers. If you want your YouTube Ads campaign to be most effective, it’s crucial to choose a format that aligns with your business goals and target customer profile. Some common types of advertising on YouTube are:
Skippable Instream Ads
These are ads that can be skipped. They appear before, during, or after each YouTube video, lasting about 15 to 30 seconds, and viewers can skip them after 5 seconds.
Placement
These ads appear in YouTube videos and on Google’s display network (YouTube viewing pages, partner website videos, and applications within the display network).
Cost structure
Advertisers are charged based on views and the cost per 1000 impressions. Businesses are only charged if viewers watch for at least 30 seconds or the entire video duration.
When to use
Businesses use this ad to reach a wide audience and increase brand awareness. Especially attracting customers in the brand or product evaluation stage. It’s essential to convey the main message within the first 5 seconds and create engaging content to keep viewers interested.
Non-skippable Instream Ads
These are video ads up to 15 seconds long that viewers cannot skip. Instead, the ad may appear before, during, or after the video.
Placement
Similar to skippable instream ads, they appear in YouTube videos, partner websites, and applications within Google’s display network.
Cost structure
Advertisers are charged based on the cost per thousand impressions.
When to use
Non-skippable instream ads are used to reach a broad audience and increase brand recognition. The non-skippable ads allow businesses to convey specific and clear messages to the target audience through a creative and engaging video.
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Bumper Ads
Bumper Ads allow businesses to convey messages in a maximum of 6 seconds. These ads can appear before, during, or after a video, and viewers cannot skip them.
Placement
Bumper ads are displayed in YouTube videos and on partner websites within Google’s display network.
Cost structure
Advertisers are charged based on the cost per thousand impressions.
When to use
Bumper ads are suitable when businesses want to reach a broad audience and increase brand awareness within a limited video duration. It’s important to focus on essential content and eliminate unnecessary elements due to the short duration.
Video Discovery Ads
In this form of advertising on YouTube, businesses have two options:
Thumbnail ads with text from a video thumbnail along with some text that appears in YouTube search results. However, the size and format of the ad may vary depending on its placement. This type of ad encourages viewers to click and watch the video.
Additionally, there are discovery ads without video content, consisting only of text. These ads appear in YouTube search results. Advertisers don’t need a video for this ad format
However, they can personalize the ad content through the title and description. On the other hand, this form of advertising also helps businesses reach customers who are in the process of finding the right solution, thereby creating better conversions.
This type of ad appears on YouTube search results with related YouTube videos or on YouTube’s mobile homepage.
Placement
These ads appear in YouTube search results, related videos on YouTube, or on the YouTube mobile homepage.
Cost structure
Businesses are charged when viewers click on the thumbnail to watch the video.
When to use
This ad format is used to reach a broad audience, increase brand awareness, or promote products and brands during the user consideration stage.
Outstream Ads
This type of ad is only compatible with mobile devices, including phones and tablets. When the ad starts playing, there is no sound until the user taps on the ad to enable audio.
Placement
Unlike other ad formats, Outstream Ads do not appear on YouTube but only on partner websites or apps within Google’s display network.
However, this type of ads can still appear on Youtube if businesses know how to choose and combine these forms together. For Outstream Ads, it will be divided into 2 types:
On mobile devices, ads will display in banner form. As for mobile applications, ads will be displayed in the form of banners, interstitials, in-feed, and native. Including portrait and full screen modes.
Cost structure
Advertisers are charged based on the cost per thousand impressions (vCPM), and businesses are only charged when users watch the video for 2 seconds or more.
When to use
Outstream Ads are used to reach viewers and increase brand awareness through video ads on mobile devices on partner websites and apps within Google’s display network.
Masthead Ads
Also known as ads at the top of the YouTube homepage, Masthead Ads are considered the most expensive YouTube ads format. These ads offer extensive reach to potential customers with maximum visibility.
Masthead ad size is 970×250 pixels for desktop, with the option to expand to 970×500 pixels, displayed for 24 hours at the top of the YouTube homepage.
Placement
Masthead Ads appear at the top of the YouTube homepage on desktop, mobile, and TV.
For desktop, the featured video at the top of the homepage will automatically play without sound for up to 30 seconds. This type of ad is displayed wide or in a 16:9 frame with any YouTube information panel on the right. After playing, the video will default to the video thumbnail. When viewers click on the video, they will be redirected to the business’s YouTube channel viewing page to watch the video.
On mobile, it will have no sound when the user unmutes. Similar to desktop ads, it will automatically use the channel name and channel logo. At the same time, businesses can customize the title, description, and call to action.
As for TV, advertisers will not be able to add a call to action button to the ad when it appears on TV screen. However, if a business wants to use this form of ads when it has already booked and has the support of Google.
Cost structure
Masthead Ads are charged either as a fixed daily cost (CPD) or CPM, where businesses work with Google’s team to estimate campaign costs and targets.
When to use
Businesses use Masthead Ads to increase brand awareness rapidly, promote products or services, and reach a large target audience.
Overlay Ads
The simplest YouTube ads, Overlay Ads, display banner ads within playing videos, covering 20% of the video player screen.
These ads can contain images or text with ratio of 468×60 pixels or 728×90 pixels. Although they offer maximum reach, Overlay Ads only display on desktops.
Preroll Ads
These ads play at the beginning of videos and cannot be skipped. Typically it lasts for 15-20 seconds, advertisers can include calls to action, maximizing viewer attention.
Preroll Ads are suitable for advertising new products or significant events and are effective for increasing clicks and impressions. Advertisers may be charged for each impression regardless of clicks or whether users watch the entire video.
Which form of advertising to choose on YouTube?
After exploring various types of YouTube Ads, businesses have a diverse range of options for advertising. However, the question remains: which form of advertising to choose on YouTube?
To make the right choice, careful consideration is needed to select the advertising format that aligns with the business goals and communication objectives. If the business aims to enhance brand awareness through engaging and creative video content, formats like TrueView in-stream or Discovery Ads would be wise choices.
On the other hand, the selection of the most suitable advertising format for a business also depends on multiple factors such as the target audience, budget, and more. Each format has its features, and advertisers need a deep understanding of each to choose the type that will deliver the highest impact.
By learning about advertising on Youtube, we hope that you will choose the appropriate type of advertising to deploy effective campaigns. Hopefully, the content presented above will help you gain more knowledge about running ads and apply it successfully to develop your business.
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Please see more:
- YouTube algorithm and how to have your videos recommended
- What are Google Smart Campaigns? How to set up campaigns
- Cost of running ads on Youtube in 2024
Some free advertising formats are:
Bumper Ads, which are unskippable 6-second ads played before, during, or after a video. Overlay Ads with small banners appearing at the end of the video without disrupting the viewer’s experience…These free ad formats help enhance brand or product/service awareness.
The budget for running ads on YouTube depends on various factors, including the ad type, target audience, schedule, location, and keyword bidding. Advertisers can set budgets for each campaign and limit expenses by establishing daily or total budget constraints.
