The Youtube Advertising space may seem like a very competitive space, but given the right tools and knowledge, advertising on Youtube can potentially return so much revenue.

Why video wins and takes it all

When comparing all forms of advertising side by side, video is simply the format that wins the most attention and drives the most engagement. This is why ever since the invention of the television, viewership slowly moves away from radio, and radio ads become cheaper due to less demand.

Fast forward to the present day, we know that this is happening again. Media viewership is now split between TV and online video media, with the majority of young people now preferring to stay updated, to learn, and to entertain themselves with online platforms such as Youtube.

Youtube alone garners the attention of over 2 billion loyal users, and many more who are unregistered — they all contribute to one billion hours of views daily. It is the second-largest search engine in the world after Google, and the first choice for any business wanting to establish their brand using video marketing.

Youtube advertising types at a glance

There are several ways you can advertise on Youtube, which offers you greater options and freedom to control how you want to use your marketing budget.

Display Ads

Display ads

These ads appear to the right of the video being watched. Not only does it occupy a large space (around 80% of the video width with the small video player), it’s also located above the video suggestions list. This smart list has consistently and correctly identified the likeliest videos to be watched by the user, making it a habitual attention zone.

Overlay ads

These semi-transparent videos pop out on the lower 20% of the video, and consist of a display banner. It is likely the cheapest type of Youtube ads, but with questionable effectiveness.

Overlay Ads
Skippable Video Ads

Skippable (video) ads

They typically appear before and during the video content, interrupting viewers from their video. A semi-transparent box on the lower right corner will warn users of an incoming ad 5 seconds before the ad appears, so viewers aren’t surprised and the ad won’t feel overly intrusive. Skippable ads allow viewers to skip the ad after 5 seconds. 

When a viewer skips the ad, the advertiser is not charged.  If the viewer watches the entire ad, or the ad has been watched for 30 seconds or more, the advertiser is charged a fee.

Non-skippable ads and bumper ads

Ads like these typically last no more than 5 seconds. Bumper ads are a variant of a non-skippable ad which must be watched before the video content can begin.

Non-skippable ads and bumper ads
Sponsored cards

Sponsored cards

After a video ends, inside the player there are several cards: suggested videos to watch next and sponsored cards. These are thumbnails of videos that are relevant to the content the viewer just watched.

People not watching your ad completely ≠ ads are not effective

The function of ads is to introduce your brand in front of your audience. Even if your ad is not completely watched, if your message is clear, straight to the point, and evokes positive emotions (humorous, inspirational, surprising, etc.), your audience will remember your brand even if they skipped your ads. To put it in another way, that is free advertising.

Youtube Ads encourage people to visit your channel

No matter which ad type you choose, they all serve a common purpose — to encourage people to visit your channel. You must not be in a hurry to get people off Youtube and onto your website. This isn’t a hard-fast rule, since there are ways to convert viewers into site visitors by posting a link in the video description. 

However observations have shown that when viewers like your video (ads), they are unlikely to visit your website right away, unless they are familiar with your brand. How do they familiarize themselves with a brand? They visit your channel to judge whether your business is authoritative. If your Youtube channel looks abandoned and only has a couple of videos, forget about seeing them on your website.

Don’t forget that Youtube is also a social media platform

Like everything else on social media, your viewers will detect various quality signals subconsciously and compare your brand with your competitors’ channels. They would look at the number of subscribers, views, ratings, content collection, even your upload frequency, community engagement and your profile’s completeness.

Put yourself in your viewer’s shoes for a moment. If a brand only uses Youtube to advertise, and contributed nothing else to the Youtube community, would you trust that brand?

Youtube ads

Good content is not cheap to produce

If your brand is new to Youtube, and its channel does not have content yet, do not invest money on advertising yet. Advertising on Youtube is worth every dollar only if you have optimized your channel (as shown in the example above).

The cost of producing content is way less than the cost of making TV ads, but creating GOOD content takes skill and experience. If you’re keen to try to create your content yourself, here are the steps we’d recommend:

1. Content development plan

Research and structure the content / plan for your video logically on paper.

2. Preparing materials for shooting

Most phones have amazing recording capabilities. You may still need a clip-on mic, some lighting and a tripod. You’ll also want to run down a script with your staff to reduce the number of takes.

3. Shooting

Most instructional videos on Youtube are between 5 to 20 minutes. Start off with a short video while you gain experience.

4. Editing

Editing, depending on how complicated your video is, can take around 2 to 4 times the duration of your entire shoot, but use this as a rough frame of reference.

5. Uploading

Optimize your video and descriptions, transcribe your video (for closed captions) and upload it to YouTube!

Are you ready for Youtube Ads?

Once you have a wide range of video content ready to be appreciated by prospective visitors, it is time for the second challenge — optimizing ads.

To save money on Youtube Ads, you will need to understand how the bidding system works. As this article serves as an introduction, we cover this in future articles. However, our marketing team at Island Media Management has years of experience with strategic ad bidding. We can ensure that the ad spendings will be less than the budget you set. In addition, you will gain so much valuable data about how your ads have performed. You may even learn about your audience and discover new ones.

In any case, Youtube Advertising is worth a try. Don’t ignore the fact that it is a social media, and present your brand in such a way that is on par with the norm. Learn more about Youtube Ads with Island Media Management.

About the author



Gio is a creative writer with a technical background in food science. His strong research skills and a keen sense of communication style blend well to craft compelling content. His personal blog covers topics about lifestyle, food, and finance. 

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