Children and parents watch YouTube more than TV
Studies show that the number of children watching online videos every day has DOUBLED in just four years. The majority of these people are doing so through a mobile device, however, a large percentage have claimed to watch YouTube videos primarily on the television. While the demographic that gravitates to YouTube is younger than the general population, the site is also used heavily by the parents.
YouTube is a great place to reach new audiences
While brands are often wary of advertising on television, it’s a great place for digital advertising. However, even though it has been around for more than a decade, the advertising market has only recently started to catch on. This means that, despite YouTube’s massive popularity and its ability to reach an ever-growing audience, the ad market remains under-penetrated by digital ads. This means that there are huge amounts of money that are not being invested in YouTube advertising. However, this is about to change. Digital advertising budgets are forecast to increase by an average of 6% per year over the next five years - a huge increase given the challenge of competing against other mediums.
Develop Brand Awareness
One of the benefits of advertising on YouTube is that you can build brand awareness by focusing on maximising the impression share in your campaigns. This is very effective when you wish to enter new markets. When people who are not familiar with you see your brand on YouTube they are more likely to remember the brand name and the associated benefits as reported by brand lift studies. This is great for building brand recognition and is a valuable way to increase awareness of your brand. Now, there are many ways that you can build awareness, from traditional advertising methods to more low-cost approaches. However, one of the most effective ways to develop brand awareness is through YouTube because of its ability to target very specific audiences. First, you don’t necessarily have to purchase ads to gain interest in your brand. Organic videos (posts that are not promoted) can be posted and unlike other social media platforms where a post will expire in 24h, YouTube will keep sending traffic to your videos for years to come. One of the best ways to gain interest organically for your brand is to create great content. This can be anything from sponsored product reviews to short and interesting clips on your products. Next, you can evaluate the best performers and use these videos in paid campaigns to effectively boost your sales. This is a low cost and effective way to get more retail and online sales. By creating videos that people enjoy and giving them a clear call to action (CTA), you can create brand awareness and drive sales.
Better Return on Ad Spend ( ROAS )
One of the most important things in ensuring efficacy in YouTube advertisements is the relevancy of your video placements to your product/service. I.e. when it comes to the placement of your ads you will waste a lot of money if you use a keyword or channel targeting. Instead, for maximum ROAS you want to use video level targeting. Analysing each video can be a lengthy process. To automate this, help is available through our AI platform, which is able to look at billions of data points and pick out the best videos for your brand with ease thus guarantee relevancy and brand safety. When compared with other mediums, you will see that YouTube advertising is very cost-effective if used right. Now you may also be wondering... what makes YouTube advertising so effective, when there are thousands of other ads on the platform? The secret lies in the way that YouTube ads are targeted.
As we have already discussed, one of the reasons that YouTube advertising is so effective is because it is targeted. When you are evaluating the market in which you can advertise, it is important to remember that you don’t have to target everyone. Instead, you can choose to target the audience that will resonate with your ads the most. It's easy to judge. If your campaigns are seeing 30% View Rate (VTR), you are hitting the industry benchmark. Any lower than this and you are wasting massive amounts of money showing the ads to irrelevant audiences. However, if your campaigns are showing over 30% VTR, they are reaching the right people who will end up buying your products. On average our clients see 50-60% VTR so get in touch if you need help and be prepared for a big difference to the effectiveness of your YouTube campaigns.
As you can see, the benefits of advertising on YouTube are numerous. It is an incredibly cost-effective way to reach a large audience and build brand awareness - or even enter a new market. However, it is also important to remember to focus on the demographics and interests of your target audience. This will help to maximize your ROAS. In short, YouTube is currently one of the best channels to allocate your budget towards and a great way to reach a large audience.