YouTube paid advertising runs through Google AdWords. Just like traditional advertising on AdWords, you choose what you want to spend. It works on a bidding system. For more information on the cost of YouTube advertising and how the bidding system works, here are Google’s own guidelines.
1. Skippable video ads (ie., TrueView ads)
2. Non-skippable video ads
3. Bumper ads
4. Overlay ads
5. Display ads
6. Sponsored cards
YouTube advertising is part of your AdWords account and any video uploaded to YouTube can be an ad. Pre-roll video ads appear before other videos on YouTube, and other video ads can appear beside playing videos and in search results. Like pay-per-click advertising, you have control over your daily budget. The benefit of video advertising on YouTube is that you only pay when someone chooses to watch your video, either by clicking on it or watching the whole thing. This means that your videos are being watched by an audience that you know is interested in what you have to say.
Cultivating an audience online is more challenging than ever. With so many social outlets, complicated algorithms and restricted exposure, it’s hard for business owners to find the time to manage social outlets effectively.
TrueView ads are the best way to drive brand engagement on YouTube. Brands who post TrueView ads often see engagement with their other YouTube content increase by up to 500 percent. TrueView ads can be skipped after five seconds - so it’s important make those first five count. Unless you’re optimizing based on action or reach (more on that below), you only have to pay for these ads when the viewer watches 30 seconds or more, which makes them a pretty safe bet for advertising on a budget. TrueView ads come in two formats, In-Stream ads and Discovery ads.
Non-skippable YouTube Ads
Non-skippable YouTube ads are paid for on a CPM basis. These longer ads are a powerful way to tell a deeper, more nuanced story. But as superheroes will tell you, “great power comes at a cost.” The cost? People getting annoyed and closing your ad.
Bumpers are technically non-skippable ads, but they’re less maligned because they last six seconds, max. Like non-skippable ads, bumpers are paid for on a CPM basis. Their short length makes them ideal for mobile. A common approach is to use bumper ads to compliment your longer, non-skippable ads.
If you’re running a reservation sponsorship campaign, you can set up overlay ads on partner videos. YouTube overlay ads are banner advertisements that you’ll often see running along the bottom of a video.
Display ads appear above the video suggestions list. Here, you’ll see the Hydro Quebec ad (outlined in red) above the RuPaul’s Drag Race makeup tutorials I’ve been watching way too much of lately. Display ads on YouTube can be managed from within AdWords, allowing you to double up with the Display Network for maximum reach.
Sponsored cards appear as a small information icon, sometimes accompanied by a text CTA that appears upon mouseover. Cards are small CTA pop-ups you can set to appear within the YouTube player. You can use them to add interactivity to your videos on desktop or mobile. Cards are effective because they’re unobtrusive. They only expand to their full size when they’re clicked