Often times when people talk about social media advertising, Youtube is overlooked. There are thousands of debates, conferences, and articles about how Instagram, Twitter, Facebook, and Snapchat are big advertisers. In all fairness, they are, but what about Youtube Advertising? We have 10 reasons why your business needs to advertise on Youtube.
1. YouTube is the #2 search engine in the world
YouTube is MASSIVE. There is no other way to put it. Before we even dive into statistics, just think about how YouTube looks when you get to your dashboard. On your home page, one scroll to the bottom of the screen, and you’ll realize that you’ve glanced over 100+ videos all related to your recent searches and subscriptions. There is no other platform like that. Remember that YouTube is strictly a social media platform for videos and live streams (video in real-time), because this will prove to be important later on in this article.
Behind Google, YouTube is the second largest search engine in the world. Why is that? As of 2019, they have 2 billion users worldwide. In addition to that, 79% of all Internet users have an account with them. If that isn’t enough, they have around 30 million daily users, which translates to 800-900 million monthly users. The bottom line is, if this is the second largest search engine after Google, and you have a product you want people to see in a creative way, wouldn’t it make sense to advertise on YouTube?
2. Amazing Target Audience
When creating a YouTube channel, you have to establish your target audience. “What are the age groups of the people you are trying to reach? What content do they mostly watch? YouTube are all videos, but there are specific videos that resonate with people more than others.” The reason we listed target audience as a major reason to advertise on YouTube is because Over 90% of 18-44 year old American internet users watch videos on YouTube.
If over 90% of people on the Internet under 45-years-old watch YouTube videos, that tells you one important thing. Regardless of the type of company you are, your videos need to be engaging. The attention span of millennials in 2020 is short, which means you have a small window to advertise your product.
At the same time, “70% of millennial YouTube users watched a YouTube video to learn how to do something new or learn about something they’re interested in”, so this just further confirms that YouTube is where you need to be. Millennials want to learn information about new things, but they want to learn in an engaging and entertaining way.
3. Several Targeting Options
We just outlined how great of an audience YouTube has, but let’s dive a bit deeper. You can target your audience based on gender, parental status, age income, and even if they are college students. You can also target people for your ads based on their interests. Affinity audiences allow you to reach people who already have a strong interest in topics related to your videos. You can go even further with custom affinity audiences. Instead of just reaching sneaker fanatics, you can reach those who are interested in the retro Air Jordans.
4. Variety of Advertising Options
YouTube has several types of advertisements. Lucky for you, we’re going to give you an explanation of each. Take time to learn the ins and outs of each, because some of them might work better than others. The first type are non-skippable ads. These are the ads that we all get annoyed with when trying to watch our favorite videos. They have to be watched before a YouTube video can play. Sometimes, they can last up to 30 seconds, and might show up before, during, or after the video. Everytime this ad is watched, the creator gets paid off it.
Skippable video ads allow users to skip after 5 seconds. They can come at any point during the video, and after the user watches 30 seconds. The creator gets paid after 30 seconds gets watched. Clearly with these skippable advertisements, one has a real limited amount of time to showcase a product or idea. You need to be extremely clever with your message and delivery.
Midroll ads are used for videos over 15 minutes. If you’ve ever watched an interview, podcast, documentary, or TV episode on YouTube, these ads are usually put throughout the video. This ads requires that viewers watch the full ad before the video continues. A smart advertiser would space the ads in the video at similar increments. Consistency is key, and this will make it a better experience for the viewer. Remember, you already have their attention with the 15 minute video, so make sure the ad is not dull and boring or they’ll exit out.
5. Easy to Track Advertising Numbers
Tracking your advertising success is easier than ever. “You can also track video viewership or quartile reporting, which shows how often an ad is watched to 25%, 50%, 75%, and 100% of its length.” If your video lasted the whole time, you know your ad is doing good. If viewers are only lasting a quarter of the video, you might need to change or improve your ad. Whatever they are seeing is not making them want to stay on your page.
6. Users spend a lot of time on YouTube
The latest 2020 data on YouTube is outstanding. In a published report by Broadband Search, it states that people watch 5 billion videos daily. We already mentioned about their 30 million daily users, which we know isn’t that much compared to other social network powerhouses. However, their major advantage is that users spend an average of 40 minutes a day on YouTube. This is only an average, which tells you that some of these users are likely spending an hour on YouTube daily.
Think about it. When you go on YouTube to listen to your favorite songs or watch your favorite music video, you aren’t going for one song. You’re more than likely going to play that initial song, and let the other videos that are “up next” play as well. We make this point to say that this further confirms your need to advertise on YouTube. People are spending so much time on here that it grants you the ability to plan more creative and engaging advertisements.
7. Low Cost Advertising
By now you are probably thinking that YouTube advertising clearly has its perks. However, what’s the cost? Nothing in life is truly free. While you are right, one of the best features about YouTube is their relatively cheap advertising costs! You can pay less than $0.10 per video view. As of 2019, “With YouTube advertising, you pay per video view. So how much does advertising on YouTube cost?
A typical video ad runs between $.10 and $.30 per view.” Also, you don’t get charged for the first 30 seconds of your ad so you get pretty much some free impressions. In other words, if the person doesn’t finish watching the first 30 seconds, there is no cost to you. YouTube advertising is a low cost, high reward system. Thousands of people can see your company name, hear what your company is about, and more, all before that 30 seconds is up..
8. Global Reach
YouTube advertising is extremely unique. For example, when someone based in Atlanta, creates a YouTube channel, they can gain views from around the world. When an Atlanta business advertises on Facebook, they are specifically targeting their local area. The point is, your reach on YouTube is much greater than other platforms. Think about it. When Drake, superstar rap artist, posts a video on YouTube and gets millions of views, each one of those views are not just from people in Toronto.
Your advertisements can be seen from people all around the world. However, you can’t reach people just by posting a video. In your studio, it’s a must that you use keywords for your videos. The more, the better. This is a part of Search Engine Optimization, and allows your videos to be viewed by a greater number of people. Think if you were the viewer. What words would you search to find that video? Those search words are the keyword you need to use.
9. Several Ways To Earn Money
In order to make money on YouTube, you have to qualify for their Partner Program. There are 5 things you need in order to become a partner.
- Follow all YouTube monetization policies.
- Live where the YouTube Partner Program is available.
- Have more than 4,000 watch hours in the last year.
- Have more than 1,000 subscribers.
- Have a linked AdSense account.
YouTube is a huge community and you will have to put the time in to build your channel up. Having quality videos, engaging and consistent content, and SEO use will lessen the time it takes to build your channel. Specifically, you can make money from ads, channel memberships, merchandise, super chats, brand deals, and YouTube Premium.
Channel memberships allow your subscribers to pay a monthly fee that gives them exclusive content. Selling merchandise can be another source of revenue for you, because you can make clothes or any other apparel related to you that is linked through your YouTube account.
Super Chat is not a concept too familiar with everyone. With this feature, “fans can purchase Super Chats to highlight their messages within chat during a live stream or Premiere.” Brand deals are another big revenue stream. Wearing another company’s logo on your shirt can bring in big bucks. In other words, brand deals are essentially product placement.
There are hundreds of ways to place products and shout out other businesses in your videos. Finally, YouTube Premium is a service users pay for so they can watch videos without ads. “Revenue from YouTube Premium membership fees gets distributed to creators based on how much members watch your content.”
10. Big names networks are partnering with YouTube for a reason
YouTube Tv was founded in 2017 and has revolutionized the Television industry. Unlike other services, this new feature offers no hidden fees, which is perfect for the typical YouTube user. Outside of it being a great product, YouTube Tv has contracts with some of the biggest networks like ABC, CBS, FOX, ESPN, NBC, Disney, TNT, and more.
They have over 70 channels now, and we say all this to illustrate that major media corporations realize the value and potential YouTube brings. This service certainly increases that 40 minute duration that people spend on the platform. This means more time for ads of new shows, products, and more. If the most successful companies see the importance of advertising on YouTube, why can’t you?