YouTube was set up so that people could watch and share videos. Since then, it has become the biggest and most popular way to share videos worldwide. YouTube is thought to have more than 1.5 billion unique users every month. Each quarter, ads on YouTube bring in more than $7 billion.
SaaS companies use YouTube’s popularity worldwide to get the word out about their products and services. Single Grain’s study found that a YouTube ad’s average conversion rate is 14%. The average conversion rate for Facebook ads is 10%, so this is a bit higher than that.
YouTube’s Ad Algorithm Selects the Appropriate Audience
YouTube’s ad algorithms are very good at targeting the right people. It looks at a user’s search history, how they browse the web, and what interests them to determine what ads they should see. This makes it more likely they will click on your ad and buy from you.
The algorithm looks at billions of information points from videos, channels, and other sources on YouTube. It subsequently employs this information to decide which ads should appear in your feed. Therefore, if a user is watching a cooking video, they may see an advertisement for a prepared food product instead of one for sports or music.
YouTube is the most popular video platform.
YouTube is the most famous search engine in the global. Daily, more than 5 billion videos are viewed on YouTube. It also has a big audience, with over 22.8 billion monthly visits. This huge reach can help bring more leads and sales to your business. YouTube is additionally the most popular and widely used place to watch videos.
It means that people will be more likely to trust and use your ads if they are in YouTube videos instead of on other sites. Other research shows that people watch videos on YouTube for an average of 18 minutes daily. This information can be important because the longer someone uses the platform, the more likely they will see your ads.
Personalize ad placements easily
On YouTube, it’s easy to make your ad placements unique and personal. You can put ads in different places on the platform, such as before, during, or after the video. Before a video starts to play, pre-roll ads are shown. Mid-roll ads run for at least 15 seconds in the middle of a video. After a video is done playing, post-roll ads are shown. There are also different kinds of video ads you can make, like;
Skippable in-stream ads
In-stream ads that can be skipped are the most common type of ad on YouTube and other sites. After 5 seconds, you can skip these ads, which usually last about 15 seconds.
Non-skippable in-stream ads
In-stream ads that you can’t skip can’t be skipped, so you must view them all the way through before you can move on to your video. Most of the time, these ads last about 15 seconds.
In-feed video ads
In-feed video ads have the kind of ads that show up in YouTube’s feed tab. When a user looks for content or keywords on YouTube, YouTube suggests these videos. They also appear on the right side of a video under Related Content.
Bumper ads
Like ads you can’t skip, you have to watch bumper ads all the way through before you can view other videos on YouTube. But they usually only last 6 seconds and come before a video. These ads work well for mobile users in particular.
Outstream ads
Outstream ads are those that don’t show up on YouTube’s site or app. They appear on other websites, apps, and mobile browsers. Most out-stream ads are videos, banners, or ads that look like the rest of the page.
Masthead ads
Masthead ads are the ones that show up in the top banner on YouTube. They don’t start playing independently, so you must click on them to watch them. Google puts them there to advertise certain products or services, such as YouTube TV.
All of those ad formats may be changed depending on how long your video is, who you want to reach, and what kind of video is being shown. YouTube lets you choose the ad format that works best for your business.
Cost-effective advertising on YouTube
Making ads for YouTube is not only easy but also cheap. You won’t have to spend much money running an ad on the platform. You can instead just make an ad and set a budget. Once the campaign is over, YouTube will send you reports that show how much your budget was used and how many people saw each ad.
So, you can easily change your campaigns according to how well they are doing. Compared with other social media sites like Facebook or Instagram, the average cost of a YouTube ad is pretty low. On average, advertising on YouTube costs $0.010–$0.30 per view, while a click and opening of an ad on Facebook costs $0.94.
YouTube Analytics lets you keep track of your results.
With YouTube Analytics, you may track how well your ads do. It tells you how often each ad has been viewed and which ones have gotten the most interaction (comments or likes). With this information, you can tweak and improve your ads over time.
The results of YouTube Analytics tell you about the age, gender, and interests of your viewers. It also lets you observe what people search for on YouTube when they find your video and how that contrasts with your advertising keywords. So, you can guarantee that your ads achieve the right people and get the best results.
Also, YouTube Analytics has left tools that let you measure the success of your campaign based on how much it costs per view or engagement. You can even set goals so that every time one of your video ads gets a certain number of views, YouTube will make an ad campaign for it.
Conclusion
Ads on YouTube could be an important and cost-effective way for SaaS companies to advertise. The YouTube ad method is powerful as it reaches the right people and learns more about them when they watch additional videos on the site. It also ensures that your advertisements will be seen by people watching the right videos.
The reporting tool on YouTube, called “YouTube Analytics,” is another powerful tool that can help you determine how well your ads are doing. You can track how often your video ads are watched, how many people click on them, and more. Overall, marketing on YouTube is a great investment for SaaS companies since it is a very effective way to bring in leads and boost sales.
