Are YouTube Ads Right for Your Business?


The short answer to this question is: Yes, YouTube ads are likely a good idea for your business. It comes with two big caveats, though.

1. YouTube ads, unsurprisingly, require strong video content.

2. For best results, YouTube ads require a detailed and targeted strategy for each audience segment.

Overall, YouTube ads help advertisers address one of the biggest challenges in marketing: choosing where to advertise in today’s crowded landscape. As the second-largest search engine after Google and third-largest social media platform, YouTube draws huge numbers of users looking for all sorts of content and experiences– making it an ideal place to advertise for any number of business goals.

Check out our step-by-step guide below to determine whether you have the tools you need to start running successful YouTube ads today.

First step: Develop video content.

Successful YouTube ads require strong videos. This doesn’t necessarily mean spending thousands of dollars on professionally produced videos. It does mean creating videos that present the most important information up front and provide value to the target audience.

It’s also important to develop the script and audio with advertising and audience in mind– according to a Reuters Institute study, 29 percent of YouTube users listen to videos while doing something else. As a result, YouTube ads need videos to convey the message via audio without help from visual cues.

Second step: Create YouTube channels and audiences.

One of the keys to success with YouTube ads is a consistent organic posting strategy targeted to specific audiences. More than half of the top 100 advertisers on YouTube have 10 or more channels, allowing them to craft hyper-relevant video content. Not every business will need that many channels, but relevance and consistency are critical nonetheless.

Before starting an advertising campaign, take time to segment out YouTube audiences and create strong content for each.

Third step: Determine a budget, bid strategy and goals.

The best way to measure the success of YouTube ads is average watch time. As a metric, it helps show how relevant the video content was to the target audience. When it comes to budget and bids on YouTube, most advertisers pay per view, which is defined as the first 30 seconds of an ad or the full duration.

Costs per view on YouTube are typically pretty affordable, with some averages pegged at $0.06 per view or less. Determine how much a view is worth for each business objective and carefully track watch time, clicks and conversions for each ad running. As with any type of advertising, testing is a crucial component for success to try out different bids, placements and budgets to see what works best.

Story by: Kelsey Thompson