What is YouTube Advertising & Why Do You Need It?

With over 1.3 billion users and each user spending an average of 40 minutes per day on the site, YouTube is a prime platform for advertising your business. Especially when you know that YouTube attracts about one-third of all people online. But what is YouTube advertising and how does it work?

What is YouTube Advertising?

YouTube advertising enables your video ad to be shown to visitors before they view their intended video. Think of the last time you viewed a video on YouTube: Did you see a short commercial-like clip before the video you clicked on started playing? That was a YouTube ad.

How Does YouTube Advertising Work?

To get started, you need a branded video ad that you want to promote to target viewers.

There are three main types of video ads on YouTube:

  • Promoted Videos: Located on the right-hand side or across the top of the search results
  • Pre-Roll Ads: A 15-30 second ad that runs before another video
  • Bumper Ads: Videos that are 6 seconds or less and use short, memorable messages

Your ad won’t show just to any visitor. With YouTube advertising, you can specify your target audience with criteria such as the topic related to your ad, viewer demographics, and the viewer’s interest based on what they are watching. For example, if you have an auto repair business, your ad could be placed near a video about popular cars. You can also exclude your ad from being associated with content that you don’t feel fits your business’s brand.

One of the great things about using YouTube advertising for your business is that once your video campaign is launched, you are only charged if people watch your ad or click on an interactive element. That means that a user would have to watch your TrueView video ad for at least thirty seconds, or the full video if it’s shorter than 30 seconds, before you are actually charged.

What Benefits Can You Get from YouTube Advertising?

The primary benefits of YouTube advertising are building awareness for your business with your target audience and driving interest that can lead to a purchase. According to YouTube, after consumers watched at least 30 seconds of their advertisement, 61% of campaigns saw a difference in purchase intent, and purchase intent for those who watched the entire ad was 19% higher. This means there’s more than just awareness at stake; there is an opportunity to attract and influence new consumers by engaging them where they already spend their time.

YouTube advertising also gives you the ability to track your success and see how your campaign performing. Unlike other types of video advertisements, like TV ads, you’ll actually know how many people viewed your ad.

Improve Your Online Reach

Are you thinking of advertising your business on YouTube? Reach consumers before your competitors do and grow your local brand awareness with video ads. Contact us to learn how our team can help you see success on YouTube.

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Josh Wilbanks

Josh is continuing his junior year at the University of North Texas and is pursuing a Bachelor's Degree in journalism with a concentration in public relations. While at UNT, Josh works as a Social Media Strategist for the Housing department and is a student representative for the Mayborn School of Journalism. He started as a Marketing Communications Intern at ReachLocal this January and is very excited to learn and grow while meeting new people in the industry.

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