These days, YouTube users spend an average of 19 minutes per day watching various content on the platform. That means a single user spends roughly 120 hours per year on YouTube. If any marketer is looking for an online marketing channel, you can bet that YouTube can deliver an enormous amount of audience Reach (statistics from WordStream report that 32.4% of people worldwide and 51.8% of internet users use YouTube).
So this article serves as a beginner's guide for new marketers who are planning to create advertising campaigns on the YouTube platform. We guarantee that once you finish reading, you'll be able to follow along right away.
Why Advertise on YouTube
As is well known, at the recent Google Marketing Live 2022 event, Google placed great emphasis on Visual Content and also announced additional new features on YouTube Shorts. So let's look at the reasons why experienced brands and marketers around the world choose YouTube as one of their top platforms for running campaigns.
Average Advertising Costs on YouTube
The following are the average advertising costs on YouTube, compiled from data by LOCALiQ.
- For CPM (Cost Per Thousand Impressions), most businesses fall between $4 – 10
- Most businesses need to allocate a daily budget for ad campaigns between $10 and $50
- Every 100,000 ad impressions on YouTube cost an average of $2,000
However, actual costs will vary depending on the business.
YouTube Ad Formats
When people hear the term "YouTube ads," many may only think of "the 30-second ad you can press Skip to skip past." But in reality, there are many ad formats on YouTube to meet the differing goals of each business. Currently, there are 6 formats as follows:
- Skippable In-Stream Ads
- Non-Skippable In-Stream Ads
- Bumper Ads
- Outstream Ads
- Masthead Ads
- Overlay Ads
- In-Feed Ads
YouTube Ad Metrics
For measuring the results of an ad campaign, marketers must first understand and distinguish the difference between a "View" and an "Impression," as follows:
- Views – As long as the ad is a skippable format, the system counts a view when the ad is watched all the way through for 30 seconds, or shorter if the video is shorter than 30 seconds.
- Impressions – For non-skippable ads, this is the display of an ad intended for the viewer to see the entire message without skipping the ad.
Creating Your First YouTube Ad Campaign Step by Step
Before starting to create an ad campaign on YouTube, marketers must clearly set their goal of whether to focus on Brand Awareness, Consideration, or Conversion, because this will affect the format and the Bid Strategy you choose later. For example, if the campaign's goal is to build Brand Awareness in order to expand the audience reached by the ad as widely as possible, then in the Bid step you would select Impression, and so on.
1. Create an Ad Campaign
Open Google Ads Manager, then select New Campaign. A window of options will appear; select "Create a Campaign Without a Goal's Guidance."
Then select the campaign type as Video.
2. Choose a Campaign Subtype
When choosing a Campaign Subtype, select the option that suits your ad campaign's goal. If you're not sure, choose Custom Video Campaign or Drive Conversion Campaign first, which of course you can come back and change later.
3. Set the Bid Strategy
The step of setting the Bid Strategy depends on the Campaign Subtype you selected. Typically, there are two options to choose from if you select Custom Video Campaign as your Subtype: Maximum CPV (Cost Per View) and Target CPM (Cost Per Thousand Impressions).
Bidding on YouTube is not as complicated as Google Ads, because each format on YouTube has straightforward bidding requirements, as follows:
- Target CPM sets a target price per thousand impressions (Thousand Impression), most often used for non-skippable ad formats (Non-Skippable In-Stream).
- Viewable CPM sets a target price per thousand viewable impressions (Thousand Viewable Impressions).
- Maximum CPV sets the maximum price to pay per view (Pay Per View), similar to CPC (Cost Per Click) bidding.
- Maximize Conversions directs Google Ads to generate as many Conversions as possible within the specified budget.
- Target CPA sets a target price per Conversion.
4. Choose the Network to Display Ads On
In the step of choosing the network to display ads on, marketers can choose where their ads will appear, as shown in the example image. For anyone who does not want their ads to appear on Search Partner or Display Network, you can deselect them.
5. Choose to Exclude Ads From Certain Content Types
If you are concerned about your ads appearing on sensitive content, marketers can change the Inventory Type to Limited Inventory. Or, if you don't mind what type of content your ad appears on, choose Expanded Inventory, which may cost less due to reduced competition.
6. Add Related Videos
Adding related videos is often a forgotten step. Don't forget that adding related videos from your channel is a seamless way to increase Engagement. Or even if you already have a Product Feed connected to Google Merchant Center, don't forget to select and use it as well.
7. Set Targeting
When setting campaign targeting on YouTube Ads, there are two options: People and Content, with details as follows:
People – This targets the audience you want your ad's display to reach. You can target based on:
- Demographics such as age, gender, parental status, household income, and so on.
- Audience Segments which you can choose from Google's Audience or a Custom Audience.
Content – This targets the type of content on which you want your ad to be displayed. You can target based on:
- Keyword Targeting targets ad displays based on content related to the group of Keywords you select, making it the most specific form of targeting.
- Placement Targeting targets ad displays on YouTube Videos, YouTube Channels, YouTube Lineups (such as popular content), as well as apps or websites, similar to how Display Campaigns are shown.
- Topics Targeting targets based on Topic, displaying ads according to certain topics, such as "Hiking & Camping," and so on.
8. Create Your Ad Campaign
Once you have completed all the previous steps, it's time to create your ad campaign.
YouTube has designed a guide for creating ads called ABCD, with details as follows:
- Attract The ad must capture attention within the first 5 seconds by structuring the ad display concisely, perhaps with quick pacing, to create a sense of surprise for the viewer.
- Brand The ad must introduce a product or service that reflects the brand's identity within the first 5 seconds, whether through text, image, or sound.
- Connect The ad must engage the viewer's emotions to connect them with the brand.
- Direct The ad must stir the viewer's feelings, perhaps by announcing a special offer or persuading them with specific words.
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