Are YouTube Ads Worth It in 2022?

YouTube is the second most used search engine after Google.  With that in mind, are YouTube Ads worth the cost to gain more business?  

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You’ve seen them–nearly every YouTube video now contains at least one ad.  With 1.5 million logged-in monthly users, many people watch an hour or more of YouTube daily–often by streaming it onto the televisions.  Another interesting fact about YouTube is that it’s the second most used search engine after Google.  With all that in mind, are YouTube Ads worth the cost to gain more business?  

Youtube Ads WorthTypes of YouTube Ads

First, it’s essential to understand not all ads are the same.  Each type of advertisement comes with a different rate schedule.  

  1. Display ads.  These are static ads that appear over the recommended videos on the right-hand side of the desktop screen.
  2. Overlay ads.  These also appear only on the desktop and cover the bottom part of the video.
  3. TrueView or Skippable ads.  This is the most common type of video advertisement.  They appear before, during, or after a video and allow the viewer to skip the remainder after the first 5 seconds.  About 80% of people prefer TrueView ads because viewers have the choice to watch them or not.  You can use an overlay ad over a TrueView ad to create a call to action.  The maximum length is 3 minutes.
  4. Non-skippable ads.  These video advertisements cannot be skipped and are usually 15 seconds in length.  The message must be powerful and quick and be ideal for brand awareness campaigns.
  5. Sponsored cards.  These ads have content relevant to the video, such as advertising a product featured in the script.

On average, the cost of a YouTube ad is somewhere between ten and thirty cents per view or action, and the average per day cost is about $10.00.  Where you place your ads will make a difference in the price, but that also means more people are watching your ads.

You have the opportunity to set your daily budget and a bid strategy.  Bids target specific keywords, and the highest bidder for a keyword is chosen to display their ad when someone searches for it.  In other words, the more you are willing to pay, the more frequently they will show your ad.

Another benefit of YouTube ads is choosing where they will place your ad.  For example, you can choose to have your advertisement shown only with specific industries or products or to ensure it is not shown with sensitive or mature topics.

Important Factors for YouTube Ads

Advertising on YouTube is different from traditional television advertising, so using a commercial created for a different medium is not recommended within this space.  YouTube ads have to be catchy and entertaining since, most of the time, viewers will have an option to skip them.

  1. Keep them short.  Google published a study showing that 30-second advertisements are the most effective, and 15-second ads are 75% as effective as a 30-second ads.  The more entertaining your video is, the more likely the viewer will watch to the end.
  2. Optimize the first 7 seconds.  You have 7 seconds to capture their attention, so plan for a powerful catch right out the gate.
  3. Share your brand.  Many viewers may not be familiar with your company, so find ways to express your brand in the video.
  4. Include a Call to Action.  It’s one thing to be entertaining, but you want your viewers to buy your product.  Don’t forget to include a clear CTA in your ad.
  5. Don’t give up.  Work with your marketing agency to review results.  If at first you don’t succeed, try, try again by adjusting keywords, bids, targeting, etc.  Try a different ad completely.  Eventually, you’ll figure out what works for your business best.

Want to see an example of an effective YouTube advertisement?  Check out this amazing ad from Nike.

Explore innovative ways to advertise your business.

At Paradux Media Group, we help organizations make the best use of their marketing budgets–from developing effective marketing campaigns to implementing new forms of advertising on YouTube.  We help companies make smart decisions to get the results they want.  Contact us today and learn more about the benefits of joining our flock!

Angela Peacor

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