Video marketing and brand promotion through YouTube has become a consensus in cross-border e-commerce operations. According to a survey, the attention paid to advertising on YouTube is about twice that of other social media. So, what are the forms of advertising on YouTube? What kind of products are suitable for each form of advertising? YouTube’s advertising forms are mainly divided into the following types: masthead ads, TrueView interstitial ads, TrueView discovery ads, guide ads, non-skippable interstitial ads, search ads, overlay ads and sponsored card ads. Only by understanding the various forms of YouTube advertising in advance can you create videos that achieve the corresponding marketing goals.
1. Masthead ads
Masthead ads are advertising content displayed in a prominent position on the masthead of the homepage when visitors log in to the YouTube website. They are very suitable for displaying brands to a wide audience on all devices.
This type of advertising can be marketed without users clicking on it, which can greatly improve conversion rates. The masthead ads on the homepage need to be booked with the YouTube sales manager and cannot be created through an adwords account. All users selected during this period will see them when they log in to the homepage. It is very suitable for promotion during new product launches, but the cost is high. This ad is generally purchased based on CPD (cost per day) or CPM (cost per thousand impressions), depending on the advertiser’s goals. CPD allows advertisers to reach a large audience with a huge single-day reach, while CPM means that advertisers can reserve a masthead ad slot on the YouTube homepage. The masthead ad format is suitable for advertisers who want to reach a large audience in a short period of time, increase awareness of new products or services, or focus on high-impact placements to increase awareness.
2. TrueView In-stream
In-stream ads refer to ads that are played within the main video, which can be inserted before, during, or after the main video. Viewers will see the first 5 seconds and then have the option to “skip”. The faster such ads attract viewers and keep them engaged, the better the effect will be. TrueView in-stream ads are one of the main ways to advertise on YouTube.
If the viewer skips before 30 seconds, or skips within the duration of the ad (less than 30 seconds), there is no charge, which makes TrueView in-stream ads a great place to conduct creative experiments. Although 76% of consumers reflexively skip these ads, at least it can be determined that the budget is spent on interested viewers. In addition, since TrueView in-stream ads are not time-restricted, it means that businesses can try different creative formats. This type of advertising can increase brand or product awareness and increase user awareness of the brand.
3. TrueView Discovery
TrueView Discovery ads appear in YouTube search results, as shown in Figure 5-4. It mainly uses image thumbnails, attractive titles, and a few short text descriptions to lock in the target of interest to display video ads, so that users are willing to click on the ads to watch. Top-ranked ads may also appear in the natural search results page.
Discovery ads are not the most prominent type of YouTube ads. If users are only interested in the video they are currently watching, they can completely bypass the ads. But if you want to increase conversion rates, this is also a good choice. When users choose to click on discovery ads, it means that they are already interested and may be more likely to convert.
4. Bumper Ad
6-second non-skippable bumper ads appear before or during YouTube videos. This fast-paced format is particularly effective when people often watch videos on their phones while walking. Bumper ads can run continuously on their own or as part of a wider advertising campaign, providing unique content or driving brand memory.
Bumper ads allow creativity to explode, and they are designed to convey concise and clear messages. When an ad only has 6 seconds, creating an impact is the only thing that matters. Everything else is invisible, so remove the unimportant things and create a strong impact. Its advantages are cheap, high frequency, paid by CPM (cost per thousand impressions), and mainly used on mobile devices. But the disadvantage is equally obvious, that is, the information to be expressed must be condensed within 6 seconds. This type of ad can be combined with TrueView ads to make an ad sequence. For example, a bumper ad can be used as a trailer, and a TrueView ad can show more detailed content. But only one complete sequence can be shown to the same user within 30 days.
5. Non-skippable In-stream
Non-skippable In-stream is an in-stream ad offered in bidding and reservations, designed to increase awareness and attract audiences through 15-20 seconds of video, similar to TV ads. Because non-skippable in-stream ads can be obtained through bidding, CPM can be reduced and purchased in a more flexible way. Non-skippable in-stream ads are paid on a CPM basis. These longer ads are a powerful way to tell deeper and more nuanced stories.
Non-skippable ads are a bit unpopular because they can be disturbing to the audience, and most people will close the ads directly. In 2020, YouTube officially terminated the 30-second non-skippable ad format. The current non-skippable ad duration is limited to 15-20 seconds. For mobile users, shorter ads use less data and require less time investment.
6. Search ads
When visitors use the YouTube search tool to search for video information using keywords or current hot search terms, the ad content is displayed. This type of ad is conducive to increasing the number of new customers and accumulating potential users. One-third of YouTube users obtain videos through search, so this positioning can be used to push ads to precise users.
7. Overlay ads
Overlay ads are displayed at the bottom 20% of YouTube videos. Users can click on the ad directly or close it while the video continues to play.
8. Sponsored card ads
YouTube Sponsored Card ads appear as small call-to-action (CTA) pop-ups in the video. Sponsored cards display content that may be related to your video, such as products in the video. Viewers will see a few seconds of trailer for the card. A small “i” symbol pops up in the upper right corner of the video, and the card expands when the viewer clicks on it. Sponsored cards are a very attractive form of YouTube advertising.