Youtube Advertising

YouTube advertising is putting commercials before or in the middle of Youtube videos for digital marketing purposes. You might click on a video of your favorite youtuber, and sometimes you see a commercial which you cannot skip for the first five seconds. These ads may include anything - from another youtuber to a cereal commercial. Mainly two parties generate income from YouTube advertising. The first one is YouTube itself. Youtube is the one who picks which videos are eligible for advertising, which commercials should be put before or in the middle of videos and it takes a percentage of each ad. The second one is the youtuber who has put the video content on YouTube in the first place. He can have ads on his videos unless the video gets demonetized. We’ll talk about YouTube demonetization later. What is the cost of Youtube Advertising? There are a bunch of things to keep in mind while talking about the costs of advertising on Youtube. One area to consider is that most of the Youtube advertisements are charged on a cost per view basis. Let’s first talk about in-stream ads because this is probably the most common form of advertising you might be aware of on Youtube. These are the ads that appear before the video you are trying to watch. These in-stream ads are on a cost per view basis. This means that you only pay for an in-stream ad whenever either user watches over 30 seconds of the ad or the ad in full. So if an ad video is 31 seconds, but they watch 29 seconds then skip the advertisement, the advertiser will not be charged. If the video is below 30 seconds, the advertiser is only charged if the ads are fully watched. What about in-display ads? These Youtube advertisements are also at a cost per view basis. Unlike the in-stream ads, advertisers are charged whenever the user decides to click on a video from either the related videos column or at the top of a search result. There are also the non-skippable Youtube advertisements, and these are charged on the basis of the number of impressions your ad is receiving. What is the cost for each ad type? The reality is that it depends on a bunch of factors. Youtube or AdWords decides how much you are going to be charged based on the competition for a specific keyword placement or demographic as well as how layered you get with your targeting. Let’s say, for example, you are an advertiser who is selling hats on Youtube. If this advertiser targets the whole world, they would be charged less than if for example only English-speaking countries. Now let’s say an advertiser is selling shirts with the State of California to only people who live in California. The advertiser again would be charged more because of a more precise targeting that is layered for their campaign. Rather than thinking about ads as a cost question, you should be asking yourself what the RIO or Return On Investment is. You could sell shirts of California to the whole world for a cheaper cost per view, but it would be a better decision to only target California at a higher cost with less ad spent waste. What is demonetization? Demonetization began in 2012 based on new ad-friendly guidelines. An algorithm was used to look at metadata and other factors to determine the video is something that an advertiser might be interested in. If the video does not qualify for Youtube advertising and gets demonetized, the creator cannot make a dime on that video from Youtube advertisements. Therefore, YouTubers should check the guidelines and make sure that their video does not violate the monetization rules if the youtuber is trying to make money on the videos.

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