How to Advertise on YouTube

Advertising on YouTube

With over 2 billion monthly active users, YouTube stands as a titan in the realm of online video platforms. As viewers flock to watch everything from tutorial videos to vlogs, it presents a fertile ground for advertisers. 

Advertising on YouTube allows businesses, big and small, to visually showcase their products, services, or messages in front of a massive and engaged audience. 

By harnessing the power of video content, brands can narrate compelling stories, build brand awareness, and drive actionable results, all while reaching viewers on desktops, mobile devices, and even TVs. 

Whether you’re a seasoned marketer looking to expand your reach or a newbie exploring the digital advertising world, YouTube offers a plethora of opportunities to connect with audiences in meaningful and impactful ways.

What Is YouTube Advertising?

YouTube advertising refers to the promotion of products, services, or brands through video ads on the YouTube platform. 

Businesses and individuals can create and publish these advertisements to reach a targeted audience, leveraging the platform’s vast user base.

Why Advertise on YouTube?

Advertising on YouTube offers a unique opportunity to engage audiences in a visual and auditory manner. As the second-largest search engine in the world, YouTube provides a vast reach. 

Moreover, it offers advanced targeting options, helping advertisers connect with specific demographics, interests, or search behaviors.

Tools and Resources for Advertising on YouTube

YouTube presents a dynamic platform for advertisers. Harnessing its potential requires more than just creative content; it demands the right tools and resources for campaign management, analysis, and optimization. 

While the following reviews span a broader social media marketing strategy, their insights are very much applicable to YouTube advertising, helping brands strategize and scale their ad efforts effectively:

• Best Social Media Management Tools: Discover the top tools that streamline video content scheduling, audience engagement, and overall YouTube channel management.
• Best Social Media Content Distribution Software: Unravel strategies and tools to amplify your YouTube video reach across various platforms, ensuring maximum visibility.
• Best AI Tools for Social Media Management: Explore the transformative power of AI in managing and optimizing YouTube ad campaigns, from video content analysis to audience targeting.
• Arrow.AI Review: Gain insights from Arrow.AI’s capabilities and consider how its features can enrich your social media marketing approach.
• Best Social Media Analytics Tools Reviewed: Manage the metrics that matter. Understand and measure your YouTube campaign performance, driving more informed decisions.

Tapping into YouTube’s vast audience requires a blend of creativity, strategy, and the right tools. These resources, while encompassing the broader digital marketing landscape, offer invaluable insights to bolster your YouTube advertising endeavors.

The Different Types of YouTube Ads

There are several types of YouTube ads to choose from. 

• Skippable Video Ads: These ads allow viewers to skip the ad after five seconds. They can be placed before, during, or after the main video.
• Non-Skippable Video Ads: These are 15-20-second ads that viewers must watch before they can see the main video.
• Bumper Ads: These are short, six-second ads that play before the main video. They are designed to be quick and catchy.
• Display Ads: These ads appear to the right of the video and above the video suggestions list.
• Overlay Ads: These are transparent ads that show on the lower 20% of the video.
• Sponsored Cards: Cards display content that may be relevant to the video, like products featured in the video.

The Benefits of YouTube Advertising

Advertising on YouTube offers small businesses several benefits.

• Vast Audience Reach: Connect with billions of users from various demographics and interests.
• Targeting Capabilities: Use YouTube’s advanced tools to target specific age groups, locations, interests, and more.
• Engagement: Video content is engaging, helping brands form stronger connections with audiences.
• Measurable Results: Advertisers can track views, clicks, and conversions to gauge the effectiveness of their campaigns.
• Versatility: With various ad formats available, brands can choose the most suitable way to deliver their message.

Getting Started With YouTube Advertising

YouTube advertising might seem confusing and difficult at first, but with a structured approach, it’s a straightforward process. 

From establishing your Google Ads account to launching your first campaign, every step is designed to provide advertisers with tools and insights to reach their target audience effectively. 

Below we’ve provided you with some step-by-step instructions to help you navigate the initial stages of YouTube advertising.

Creating a Google Ads Account

Creating a Google Ads account is easy to do:

1. Visit the Google Ads homepage.
2. Click on the “Start now” button.
3. Enter your email address. It’s preferable to use an email associated with your business.
4. Choose the website URL of your business (if applicable).
5. Follow the prompts to complete the process, including choosing your advertising goal and budget.
6. Confirm your account details and finalize your account setup.

Linking Your Google Ads Account to Your YouTube Channel

Linking your Google Ads account to your YouTube channel can be done by following these steps:

1. Log in to your Google Ads account.
2. Navigate to “Settings” and select “Linked accounts.”
3. Find and click on “YouTube.”
4. Click on the “+” button and enter the URL of your YouTube channel.
5. Request to link the accounts. A request will be sent to the YouTube channel’s owner.
6. Approve the request from the YouTube channel’s side by accessing the “Channel Settings” on YouTube and approving the linking request.

Setting Up Your First YouTube Ad Campaign

Here is how to set up a YouTube ad campaign:

1. Navigate to Google Ads and sign in to your account.
2. Click on the “Campaigns” tab and then “New Campaign.”
3. Select the goal of your campaign, such as sales, leads, or website traffic.
4. Choose “Video” as your campaign type.
5. Set your budget, bidding strategy, and the networks where you want your ad to appear.
6. Define your target audience by demographics, interests, keywords, and more.
7. Upload your video ad and fill in the necessary details.
8. Review and launch your campaign.

Example:

Tom, a local gym owner, wants to promote his gym’s new yoga classes through YouTube ads. Here’s how he sets it up:

1. Tom visits the Google Ads homepage and creates an account using his business email.
2. He then links his Google Ads account to his gym’s YouTube channel.
3. Tom selects “Leads” as his campaign goal and chooses the “Video” campaign type.
4. He allocates a daily budget of $40 and selects a “Cost-per-view” bidding strategy.
5. Tom targets adults aged 25-50 in his city who have shown interest in “Yoga and Fitness.”
6. He uploads a 20-second ad showcasing the yoga classes and the serene gym environment.
7. After reviewing all settings, Tom launches his campaign.

Tips:

• Utilize YouTube Analytics: This tool provides insights into your video’s performance, helping you optimize your campaigns.
• Craft a Compelling Thumbnail: A captivating thumbnail can significantly boost your video’s click-through rate (CTR).
• Engage with Viewers: Respond to comments and feedback on your ad to create a community feel.
• Optimize for Mobile: Many viewers watch YouTube on mobile. Ensure your ad is mobile-friendly and clear.
• Rotate Ads Regularly: To prevent ad fatigue, change or rotate your ads every few weeks.

Targeting Your YouTube Ads

Crafting a compelling ad is only half the battle. For your advertising efforts to truly resonate, it’s crucial to ensure that your content reaches the right audience. 

YouTube, with its integration with Google Ads, provides a comprehensive set of targeting options, allowing advertisers to fine-tune who sees their advertisements. 

This precision targeting not only boosts the effectiveness of campaigns but also ensures that your advertising budget is utilized optimally.

Targeting Your Ads by Demographics

Demographic targeting allows advertisers to reach users based on specific characteristics:

1. Log in to your Google Ads account.
2. Navigate to your video campaign.
3. Click on “Placements” in the page menu.
4. Select “Demographics.”
5. Choose the specific demographics you wish to target, such as age, gender, parental status, or household income.
6. Adjust your bids or restrict certain demographics as needed.

Targeting Your Ads by Interests

Interest targeting helps advertisers connect with users based on their interests and habits:

1. Log in to your Google Ads account.
2. Navigate to your video campaign.
3. Click on “Audiences” in the page menu.
4. Browse and select from various interest categories, like “Beauty Enthusiasts” or “Sports Fans.”
5. Apply the selected interest categories to your campaign.

Targeting Your Ads by Keywords

Keyword targeting ensures your ads appear for specific search terms or related content:

1. Log in to your Google Ads account.
2. Navigate to your video campaign.
3. Click on “Keywords” in the page menu.
4. Enter the specific keywords or phrases related to your ad.
5. Set your bid amounts for each keyword.

Targeting Your Ads by Placements

Placement targeting allows you to specify the exact YouTube channels or videos where you want your ad to appear:

1. Log in to your Google Ads account.
2. Navigate to your video campaign.
3. Click on “Placements” in the page menu.
4. Search for specific YouTube channels or videos.
5. Add them to your target placements list.

Example:

Liam runs an online store selling vintage watches. To promote his latest collection:

1. He targets males aged 25-45 with a high household income, believing they’re more likely to appreciate vintage items.
2. He selects interests such as “Luxury Goods Enthusiasts” and “Antique Collectors.”
3. Liam inputs keywords like “vintage watches,” “luxury timepieces,” and “antique watches.”
4. He then chooses to place his ads on YouTube channels that review watches and on videos discussing vintage fashion.

Tips:

• Blend Different Targeting Methods: Combining, for instance, demographic and interest targeting can yield more precise results.
• Monitor and Adjust: Regularly check which targeting methods are yielding the best results and adjust accordingly.
• Avoid Over-Targeting: Being too specific can limit your ad’s reach. Find a balance to ensure a broad yet relevant audience.
• Research Competitors: Understand where competitors place their ads or which keywords they might be targeting to find potential opportunities.
• Utilize Negative Keywords: These prevent your ad from showing up in unrelated searches, ensuring better-targeting precision.

Creating Effective YouTube Ads

An advertisement’s success on YouTube doesn’t merely depend on its reach but also its resonance. This means that while targeting ensures your ad gets in front of the right eyes, the content of the ad determines how those eyes perceive your brand or offering. 

An effective ad captures attention, conveys a message clearly, and prompts a desired action — all within a short span of time. 

Let’s explore the key components that contribute to an ad’s effectiveness.

Writing Effective Ad Copy

The words accompanying your video can have a profound effect on viewer engagement:

1. Understand Your Target Audience: Know who they are, what resonates with them, and what problems they face.
2. Be Concise: YouTube ads are short, so your message needs to be clear and to the point.
3. Emphasize Benefits: Highlight how your product or service can benefit the viewer.
4. Use Strong Verbs: Actionable verbs can drive engagement.
5. Test and Refine: Regularly test different ad copies to see what resonates best with your audience.

Choosing the Right Thumbnail Image

A thumbnail serves as a first impression:

1. Represent Your Content: Ensure the thumbnail gives a hint about the video’s content.
2. Opt for High-Resolution Images: Clarity attracts clicks.
3. Include Minimal Text: If using text, ensure it’s bold and readable, but avoid cluttering.
4. Test Different Thumbnails: An A/B test uses different images to determine which one attracts more viewers.
5. Be Consistent With Branding: Over time, viewers should be able to recognize your brand’s content just by looking at the thumbnail.

Creating a Call to Action

A compelling CTA prompts viewers to take the desired action:

1. Be Clear: Specify exactly what you want the viewer to do next.
2. Keep It Short: A concise CTA is more impactful.
3. Place It Strategically: Use YouTube’s end screens or overlay CTAs during key moments in the video.
4. Make It Stand Out: Use contrasting colors or bold text.
5. Align the CTA With Your Goal: If you’re aiming for website visits, your CTA could be “Visit our site,” or “Shop now” for product sales.

Example:

Emma wants to promote her new eco-friendly skincare line through a YouTube ad. Here’s her approach:

• Ad Copy: “Revitalize your skin with nature’s best. Experience eco-friendly skincare that loves both you and the planet.”
• Thumbnail: A high-resolution image of a model with glowing skin holding the skincare product, with minimal text saying “Eco-Friendly Glow.”
• CTA: An overlay during the video’s final moments, saying “Discover Natural Beauty. Shop Now.”

Tips:

• Storytelling Is Key: Even in a short ad, a narrative can make it memorable.
• Use Authenticity: Genuine testimonials or real-life situations can enhance trust.
• Optimize for Silence: Many viewers might watch with the sound off. Use captions or ensure your message is conveyed visually.
• Maintain Brand Consistency: Ensure your ads reflect your brand’s tone, style, and values to build a recognizable identity.
• Engage Early: Capture the viewer’s attention in the first few seconds. With skippable ads, this can be the difference between a view and a skip.

How Much Does It Cost to Advertise on YouTube?

Understanding the cost of advertising on YouTube can be a bit complex due to the various ad formats and bidding options available. 

However, with the right approach and knowledge, businesses can efficiently allocate budgets that cater to their unique needs and objectives. 

Here’s a breakdown to provide clarity on the subject:

1. Ad Formats and Their Costs: YouTube offers multiple ad formats, and the cost can vary depending on the type chosen:

• TrueView Ads: Advertisers pay only when a viewer watches at least 30 seconds of the ad or interacts with it. The average cost-per-view (CPV) can range between $0.10 and $0.30.
• Bumper Ads: These are six-second non-skippable ads. Costs are typically calculated on a CPM (cost per thousand impressions) basis, with average rates ranging from $4 to $10 per thousand views.
• Non-Skippable Ads: These can last up to 20 seconds, and like bumper ads, the pricing is usually based on CPM.
• Display Ads: These ads appear to the right of the video content and above the video suggestions list. Costs can vary widely based on competition and targeting.
• Overlay Ads: Semi-transparent ads that show up on the lower 20% of your video. These can also vary in cost based on competition and targeting.

1. Bidding Strategy: The actual cost of your YouTube ad is determined by several factors including your bid, the quality of your ad, and the competition in the auction. Advertisers can set daily budgets to control spending, and YouTube will aim to distribute your budget evenly over the day.
2. Targeting Options and Their Impact on Cost: The more specific your targeting (e.g., targeting based on age, gender, interests, keywords, etc.), the higher the cost might be. This is because YouTube’s algorithm identifies the right audience, ensuring that your ad is shown to those most likely to engage.
3. Average Costs: While specific costs can vary widely based on factors already mentioned, on average, advertisers pay anywhere between $0.10 to $0.30 per view for TrueView ads. For CPM-based formats, it might range from $4 to $10 or more per thousand views, depending on the ad’s placement and audience targeting.

Tips:

• Start Small: Especially if you’re new to YouTube advertising, start with a modest budget to test the waters and gather data.
• Analyze and Optimize: Use YouTube Analytics to gain insights into which ads perform best and adjust your strategy accordingly.
• Diversify Ad Formats: Don’t put all your budget into one ad format. Try different formats to see which one yields the best return on investment (ROI) for your goals.

While YouTube advertising costs can vary, it provides a flexible platform for businesses of all sizes. 

Properly optimizing your campaigns can help you achieve a favorable cost-benefit ratio, ensuring you get the most value out of your advertising investment.

Setting Your Budget and Bidding Strategy

Ensuring a successful YouTube ad campaign not only involves crafting the perfect ad but also effectively managing the financial aspects. 

Setting a strategic budget and selecting the right bidding strategy can make a significant difference in achieving your advertising goals. 

This doesn’t always mean spending more but spending smarter. 

Let’s break down how you can manage your campaign’s budget and bidding strategy for optimal results.

Setting a Budget for Your YouTube Ad Campaigns

Determining your budget ensures you don’t overspend while aiming for substantial impact:

1. Define Your Goals: Understand whether you’re aiming for brand awareness, sales, leads, or other objectives.
2. Research Your Audience: Different target audiences might require different budget allocations.
3. Start Small: Especially if you’re new to YouTube advertising, start with a smaller budget and adjust based on performance.
4. Distribute Over Time: Decide if you want a daily or campaign total budget.
5. Factor in Additional Costs: Remember production costs, if they’re not already accounted for.

Choosing a Bidding Strategy

Your bidding strategy will dictate how you pay for user interactions:

1. Understand Bidding Options: Familiarize yourself with Cost-per-View (CPV), Cost-per-Click (CPC), and Cost-per-Thousand Impressions (CPM).
2. Align With Your Goals: For brand awareness, CPM might be best. For user interactions, consider CPV or CPC.
3. Set Bid Limits: Decide the maximum amount you’re willing to pay for an interaction.
4. Monitor Competitive Metrics: See how your bids compare to competitors with tools like “Auction Insights.”

Managing Your Budget and Bidding Strategy Over Time

Ad campaigns require periodic adjustments for continued success:

• Review Performance Regularly: Utilize YouTube and Google Ads analytics to track performance.
• Adjust Bids: Increase bids on high-performing keywords and reduce or eliminate low-performing ones.
• Reallocate Budget: Shift funds from less successful campaigns to more effective ones.
• Experiment With Different Strategies: Test out different bidding strategies to see which offers the best ROI.
• Stay Updated: Platforms and audience behaviors change. Stay informed on new features or trends that could affect costs.

Example:

Sophia is launching a new line of handcrafted jewelry and decides to advertise on YouTube. Here’s her approach:

• Budget: Sophia sets an initial daily budget of $50, aiming for brand awareness and website visits.
• Bidding: After researching her target audience, she opts for a CPV bidding strategy, setting her maximum bid at $0.05 per view.
• Strategy: Over a month, Sophia noticed certain keywords outperforming others. She adjusts her bids accordingly, increases her daily budget slightly, and experiments with a CPC strategy for a week.

Tips:

• Stay Flexible: Digital advertising landscapes can shift rapidly. Be ready to adapt your strategies as needed.
• Utilize Automated Bidding: Google Ads offers automated bidding strategies that can be optimized for your specific goals, saving time and potentially improving performance.
• Factor in Seasonality: Certain times of the year, like holidays, may have more competition, affecting bid amounts and budget needs.
• Monitor Frequency: Ensure your audience isn’t seeing your ads too often, leading to ad fatigue.
• Seek Expertise: If managing budget and bids becomes overwhelming, consider seeking expertise from digital marketing professionals or agencies.

Measuring the Results of Your YouTube Ad Campaigns

Successfully navigating the world of YouTube advertising doesn’t end once your ads are live. In fact, one could argue that’s when the real work begins. 

To truly harness the potential of your ad campaigns, continuous measurement, analysis, and optimization are essential. 

This iterative process ensures that you get the most out of every advertising dollar spent. 

Let’s investigate the steps involved in evaluating and enhancing your campaign’s performance.

Tracking Your Campaign Performance

Monitoring is the first step in understanding your ad’s impact:

1. Set Up Tracking Tools: Ensure YouTube Analytics and Google Ads are properly linked and tracking.
2. Determine KPIs: Before launching, decide on the Key Performance Indicators (KPIs) relevant to your goals, such as views, click-through rates, or conversions.
3. Monitor in Real-Time: Regularly check the performance dashboard in Google Ads for real-time insights.
4. Use UTM Parameters: Attach UTM parameters to your ad URLs to track traffic sources in tools like Google Analytics.
5. Consider Third-Party Tools: Platforms like Brandwatch or HubSpot can offer additional insights.

Analyzing Your Campaign Results

Raw data needs interpretation to provide actionable insights:

1. Review KPIs: Compare your predetermined KPIs against actual performance.
2. Segment Your Data: Break down results by demographics, ad type, placement, etc., to understand which factors drive success.
3. Calculate ROI: Determine the return on investment by comparing costs against generated revenue or other value metrics.
4. Study Viewer Behavior: Utilize YouTube Analytics to see how viewers engage with your videos — where they drop off, rewatch, etc.
5. Gather Qualitative Feedback: Consider comments, likes, and shares as softer metrics that can provide context to quantitative data.

Optimizing Your Campaigns for Better Results

Insights from tracking and analysis should inform future strategies:

1. Adjust Targeting: Refine your audience segments based on performance metrics.
2. Tweak Ad Content: If certain messaging or visuals aren’t resonating, consider revising.
3. Reallocate Budget: Shift budget to higher-performing ads or audiences for better ROI.
4. Test Different Ad Formats: If using only one type of YouTube ad, consider experimenting with others.
5. Stay Updated: YouTube’s algorithm and audience behaviors evolve. Regularly refresh your knowledge to stay current.

Example:

Carlos runs an online course platform and launches a YouTube ad campaign to promote a new course on digital marketing. Here’s how he measures and optimizes:

1. Tracking: Carlos tracks views, click-through rates, and conversions using Google Ads and UTM parameters to see which ads drive sign-ups.
2. Analysis: He notices that ads targeting users aged 25-35 have a higher conversion rate and that a specific ad format has a lower drop-off rate.
3. Insights: Carlos reallocates more of his budget to target the 25-35 age group and produces more ads in the successful format.

Tips:

• Embrace A/B Testing: Test slight variations of your ad to determine which elements resonate best with your audience.
• Stay Patient: Some campaigns might require time to gain traction. Don’t rush to conclusions based on short-term data.
• Engage With Comments: Viewer feedback in comments can offer direct insights into what they liked or disliked about your ad.
• Leverage Audience Retention Data: This metric in YouTube Analytics shows when viewers stopped watching your ad, helping identify potential areas for improvement.
• Collaborate: Regularly discuss campaign performance with your team or agency for diverse perspectives and insights.

YouTube Advertising Case Studies

Every company has different advertising needs. Here are five real-world examples of how companies have used what we’ve taught you in this guide to create high-level results.

1. Grammarly

Location: US

Background: Grammarly, the digital writing assistant, utilized YouTube to increase brand awareness and drive installations of its browser extension.

Strategy:

• Grammarly developed ads emphasizing the benefits of error-free writing.
• The company used a mix of short-form and long-form ads to engage users.
• Grammarly targeted ads based on user interests, particularly focusing on professionals and students.

Results:

• Saw a 20% increase in brand search queries.
• Achieved a significant rise in weekly installations.

2. Gymshark

Location: UK

Background: Gymshark, a fitness apparel and accessories brand, aimed to grow its brand presence and drive sales.

Strategy:

• Collaborated with fitness influencers to produce workout content.
• Used YouTube’s TrueView to promote its influencer videos.
• Segmented its audience based on fitness interests and demographics.

Results:

• Achieved a 3x return on advertising spend.
• Saw an increase in brand searches and website traffic during the campaign.

3. Purple

Location: US

Background: Purple, a mattress brand, sought to differentiate itself in a crowded online mattress market.

Strategy:

• Created humorous and engaging video content explaining the science behind their product.
• Used YouTube’s skippable in-stream ads and non-skippable bumper ads.
• Focused on retargeting users who visited its website without making a purchase.

Results:

• Achieved a 60% increase in sales during the campaign period.
• Notably increased brand recognition in the market.

4. L’Oreal UK

Location: UK

Background: L’Oreal aimed to launch its new product and boost brand engagement among younger demographics.

Strategy:

• Partnered with influencers for product tutorials and reviews.
• Targeted its ads toward users with beauty and fashion interests.
• Utilized YouTube’s shopping ad format, linking directly to product pages.

Results:

• 20% increase in product sales during the campaign.
• Achieved higher engagement rates compared to previous campaigns.

5. GoPro

Location: US

Background: GoPro, known for its action cameras, aimed to enhance brand engagement and showcase the quality of its products.

Strategy:

• Encouraged users to share their own GoPro footage, creating a user-generated content campaign with its video partners.
• Used YouTube’s TrueView and bumper ads for broader reach.
• Targeted outdoor enthusiasts and adventure seekers.

Results:

• Achieved millions of views and a high level of user engagement.
• Increased brand loyalty and showcased product quality through real-life user content.

Each of these brands tailored their YouTube advertising strategy to their unique business needs, target audience, and brand message, ultimately leading to their success.