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Introducing Google’s New TrueView Video Ads and How Your Business Can Leverage It
Intern, and currently a year 1 student at NUS Business School. Loves online marketing, as it gave him streams of income previously unthinkable. Other than digital marketing, he is also a avid traveller, soccer fanatic, and a voracious reader.
Within the short span of 5 years, YouTube is now the second most used search engine in the world. Videos on the site exceeed 2 billion views a day, which is nearly double the prime time audience of all 3 major US broadcast networks combined.
More shockingly, 35 hours of video are uploaded every minute, and more video is uploaded to YouTube in 60 days than all 3 major US networks created in 60 years!
In December 2010, Google rolled out a new advertising model for its YouTube videos – TrueView. The key philosophy behind this change is to increase engagement, and decrease wastage.
Under this model, advertisers pay only when viewers choose to watch your ads, and not when an impression is served. The end result, is that everyone wins: viewers only watch ads they find interesting or relevant, and this engenders a source of highly targeted traffic to your video ads.
Hence, this not only increases engagement, but also decreases advertising expenditure as advertisers only pay for views by engaged viewers.
According to Bruce Daisley, sales director at Youtube and Google, viewers who have chosen to watch video ads on Youtube are 75% more engaged as compared to those who watch standard ads. This translates into better recall of your brand which consequently, will produce more sales.
TrueView Ad Formats
Under TrueView, there are 4 ad formats to choose from, and to get the most exposure for your advertising dollar, Google recommends purchasing advertising in all 4 formats.
1. TrueView in-Stream
These ads can appear before, during, or after a YouTube video. It will run for 5 seconds, and at the end of which users will have an option to close the ad or continue watching.
Advertisers pay if viewers watch the video ad for 30 seconds or for its full length, whichever is shorter.
One benefit for advertisers is that even if viewers choose to close the ad, you would have exposed your brand to them without any cost.
2. TrueView in-Slate
These ads show before YouTube videos which are 10 minutes or longer. Viewers have the choice to watch one of three ads or watch regular commercial breaks during their video instead.
Advertisers pay when viewers choose to watch your video ad.
3. TrueView in-Search
Previously known as promoted videos, these ads will appear at the top or on the right sidebar of both Youtube and Google search results.
Similarly, advertisers pay when viewers choose to watch your video ad.
4. TrueView in-Display
These ads appear alongside other YouTube videos, or on websites on the Google Display Network that match your target audience.
Again, advertisers pay when viewers choose to watch your video ad.
Implications for Advertisers
The key consideration for advertisers in the face of this new model has to be on making good, attractive ads.
According to a study done by Google, ‘curiosity’ is the top reason why consumers choose to view an ad, and so piquing interest in the first 5 seconds is key to driving viewership. In other words, creativity wins.
Not to forget, other factors such as an ad’s relevance and how engaging and enticing it is, are also crucial.
The Importance of Video Marketing
Today, the importance of video marketing is unparalleled. The graphic below from yume.com and adweek.com depicts why.
Looking beyond these stats and figures, what businesses today must grasp is that viewing videos online has become a lifestyle, and YouTube has become a part of the social media landscape that is active, reactive and interactive. Users comment on the videos, subscribe to channels, and share interesting videos on social networks. Importantly, YouTube can be tapped as a channel to drive more visitors to your website!
- Over 5 million people have found and subscribed to a friend’s channel using YouTube’s friend-finding tools
- Every auto-shared tweet results in six new YouTube.com browsing sessions
- More than half the videos on YouTube have been rated or commented on by users
- Over 4 million people are connected and auto-sharing to at least one social network
Companies which harness the power of YouTube against this social media backdrop will reap the benefits manyfolds in reduced advertising costs, increased sales and increased brand exposure.
To find out how businesses such as Ford Motors utilized video marketing successfully, you could check out this media studies project (Social Media Marketing: Successful Case Studies of Businesses Using Facebook and YouTube with an In-Depth Look into the Business use of Twitter) from Stanford University.
For those who would like to get a better understanding of the TrueView ad formats, you could check out this video below. And if you are ready to try out this channel to get more visitors to your website, speak to our friendly consultants today!