Do you know what’s great about Digital Video Advertising? Consumers expect it and they understand it. Anyone alive today has been exposed to video ads via television for decades. Ever since video media started to be beamed onto our retina, there have been supporting ads alongside the content. But Digital Video, with a seemingly unlimited avenue of channels, is changing the game.
YouTube is the World’s Largest TV Channel
Talk about a teen sensation. In 2020, YouTube turns 15, but even though it barely has peach fuzz on its cheeks, YouTube is the most popular video platform in the world, by far. Which makes it the “killer app” for video advertising. Every year, as YouTube approaches adulthood, more people rely on it for the bulk of their video consumption.
According to Brandwatch (Feb 2020), “YouTube reaches more 18-49 year-olds than any broadcast or cable TV network.” Also, in 2015, “18-49 year-olds spent 4% less time watching TV while time on YouTube went up 74%.” Every day, one billion hours of video are watched on the Google-owned platform. The age of YouTube is truly upon us.
What does that mean for brands? It offers a gigantic inventory of ads on YouTube Advertising.
What Are the Types of YouTube Ads?
There are six kinds of ads available to advertisers on YouTube:
- Skippable In-Stream Ads
- Non-Skippable In-Stream Ads
- Video Discovery Advertisements
- Pre-Roll Ads
- Outstream Ads
- Masthead Ads
Understanding YouTube’s In-Stream Ads
The In-Stream ads are probably the most well-known on the YouTube platform. These are the ads you see played in the middle of a streaming video. They are typically very short, only a few seconds long. They come in two types: skippable and non-skippable. In-Stream ads are very popular with advertisers and usually very affordable. While users can “tune them out” or skip them in the case of skippable ads, they have a high completion rate.
Video Discovery Ads
Think of YouTube discovery ads as an equivalent to paid search ads on search engines. These ads appear when a user searches for a video and is shown above the video search results. These text ads are typically billed on a click basis as opposed to impressions. They may also be referred to as YouTube Network Display Advertising. A mouthful, huh?
Pre-Roll Ads on YouTube
The best use of this YouTube advertising option is Programmatic Preroll or short video ads that run directly before the video selected by the consumer. Pre-roll ads usually run for less than ten seconds and cannot be skipped. These are ads typically sold on a CPV (cost per view) basis. This also sometimes referred to as “bumper ads.”
Outstream Advertising on YouTube
As mobile traffic soars (now more than half of all Internet traffic is on handheld devices), Outstream Advertising becomes more critical. These ads appear on mobile devices only, are typically very short, and begin playing with the sound muted. Users can interact easily with the videos by tapping their mobile screens, but usually, the ads must be watched to completion before the user can see the YouTube video they’ve chosen.
When paired with other advertising, such as PPC, social media marketing, and email marketing (think GMail inbox ads), Outstream Ads can create a branding blanket campaign that targets consumers who have interacted with you in the past or shown an interest in your products or services.
These ads only appear when negotiated directly with Google Ad services, and usually run for large-scale national campaigns or events.
Summary of Other Digital Video Advertising Channels
At Koeppel Direct we understand that YouTube is only one of the ways to advertise with video online. We’ll save a deeper dive for another article here on our blog, but those options include on-site video ads, as well as advertising on streaming services and utilizing OTT (Over-The-Top) channels like Roku, Amazon Prime TV, Hulu, Netflix, and others.