How much to pay to get profit from YouTube Ads?
YouTube is extremely popular all over the world. People of all gender, ages, interests, and professions watch it every day via PC’s smartphones and tablets. Since social media are one of the most powerful tools for digital advertising — it would be unwise to ignore YouTube. A smart advertising campaign on YouTube could give you amazing results. If you didn’t add it to your advertising strategy — this article will surely convince you.
Types of ads you can meet on YouTube
To get started, you need to sort out what types of ads actually exist on YouTube. Each of them has different price and purpose.
· Display ads. They appear in the right corner of the display, above the list of suggested videos. This type of advertisement is the least annoying one to a user, since it doesn’t cover the video. Thus it is also less efficient — the viewer can simply miss it.
· Overlay ads. These are the narrow advertisement bars at the bottom part of a video. They could be semi-transparent and solid, contain text or pictures. Usually, you can close them by hitting the “x” button, but they will shortly appear again.
· Skippable video ads. Short advertisements that are shown before the main video and can be skipped after 5 seconds. They are the one of the most efficient formats — the user sees the ad, but is not annoyed by its length.
· Non-skippable video ads. These are quite unpopular because a user can’t skip it and becomes frustrated. They are usually 15–20 seconds long, there also is an extended version of 30 seconds.
· Bumper ads. A user can’t skip this short of ad that is shown before the main video, but it is only 6 seconds long, so it is quite popular.
· Sponsored cards. In the end of a video some bloggers point the link cards, shown at the bottom and right part of the video. These are the advertisements of the relevant to video’s theme products or other videos.
What do you pay for?
YouTube is a part of Google, so all the campaign management is done via Google AdWords. It’s very convenient — you can control all your adt campaigns within one interface. With the YouTube ads you usually pay for views. There are three types of charge for a view:
1. If you use TrueView in-stream video ads, you pay when a user watched at least 30 seconds of your video or somehow interacted with it. If a user does both — watches the video and, for example, likes it, you pay only once, only for the first action.
2. If you use TrueView discovery ads, you pay every time a user hits preview thumbnail in a list of suggested videos in the mobile version.
3. You can pay not for a thousand of views. It could be more efficient, but it will cost more for sure.
What defines your ad price?
The average price for a view is from $0.10 to $0.30. You set the price and start the campaign, but you can’t predict how much views you will get. There are also multiple things that influence a total price of YouTube advertising campaign.
First of all — the advertisement rate, that depends on video’s quality and its relevance to a targeted audience. The more views your video gets — the less will be your cost per view.
The next are your competitors. YouTube has a bidding system. When setting a campaign, you define a maximum CPV (cost per view). This sum means that you don’t want to give more than it for a single view. If your video has a competitor — your CPV will be compared. The biggest bid wins. Therefore you pay for a view with a little higher cost. For example, if you set a maximum CPV at $0.30, and your competitor set it at $0.25 — you will pay $0.26 for every view (not $0.30).
Daily budget
There is also an option to set a daily budget. You define what sum you would like to spare daily and AdWords stops advertising when it is reached. It’s convenient to plan a monthly expense for YouTube advertising. You just divide the sum you planned to spend for this type of advertising into 30 pieces and set it as a daily budget. For example, you have $300 for YouTube campaign. So, you define a daily budget as $10.
Analyze your results
To make your strategy really efficient you have to be ready to change it. Analyze the number of views, user’s engagement, and total cost of the campaign. If your video has problems with display, lifting the maximum CPV could help. Your video may be not of the highest quality and you’ll have to change or even re-shot it. Watch carefully on how is your campaign proceeding to interfere in the right time.
Why use influencers?
Traditional video advertisements are becoming inefficient. Users don’t want to watch them and that’s why different ad blockers become so popular. While direct advertising fades, influencer marketing is rapidly growing. Internet users tend to believe vloggers’ opinion and unobtrusive advertising gets increases the return every year. This article will help you to understand how to find and hire an influencer.
It’s obvious, that the most convenient way to set up an influencer marketing campaign is to use a proper tool. SocialMedia.Market is the first decentralized platform for managing the process of hiring and working with influencers. An advertising campaign could be set in a few clicks — the process has never been easier.
