Earlier this week YouTube launched a new way to run video ad campaigns. Advertisers can now upload three different types of videos under one campaign, and it apparently cuts campaign costs by more than 20%. In the announcement, YouTube said they’re constantly working on better ways to help companies achieve their marketing goals—whether that’s to build awareness, shift perceptions, or drive a specific action. It should be a simpler and more effective way to drive reach while meeting target audiences in the places they’re watching.
Video Reach Campaigns
Before, advertisers would have to make 3 separate campaigns for each video ad type. Now, they can use 6 second bumpers, skippable in-stream ads, and non-skippable in-stream ads in a single campaign. From there, Google’s machine learning will automatically serve the most efficient combination of these formats to help reach your audience at scale.
Bumper Ads: Non-skippable ads, 6 seconds or shorter that are shown before the video the user wishes to view. Bumper ads use target CPM (cost-per-thousand impressions) bidding. You pay each time your ad is shown 1,000 times.
Skippable In-Stream Ads: The ad plays before, during, or after other videos and viewers have the option to skip after 5 seconds. These can appear on YouTube watch pages, on videos on partner sites, and apps in the Display Network. You have two bidding options, CPV or CPM. With CPV you pay when a viewer watches 30 seconds of your video (or the duration if it’s shorter than 30 seconds) or interacts with your video, whichever comes first. CPM bidding means you pay based on impressions. Skippable in-stream ads use CPM (cost-per-thousand impressions) bidding, so you pay each time your ad is shown 1,000 times.
Non-Skippable In-Stream Ads: The non-skippable video ad is an ad format that may appear pre-, mid-, or post-roll while viewing partner content. They can be 15-20 seconds long and viewers must watch the ad before they’re able to watch the selected video. A smaller, 300 x 60-pixel ad may also be shown next to YouTube videos that show non-skippable video ads on desktop. They are sold on a CPM basis, and may generate higher CPMs than other ad formats on YouTube.
TrueView for Action Campaigns
For companies looking to build a full-funnel strategy, YouTube recommends using the video campaigns alongside a TrueView for action campaign. TrueView campaigns are built to drive leads and conversions by adding CTAs, headline text overlays, and an end screen to video ads. In the announcement, YouTube said that soon, TrueView for action ads will extend to the home feed, giving advertisers the opportunity to capture more high value leads.
Masthead on TV Screens
YouTube also announced it will be bringing mastheads to their fastest growing surface, the tv screen. According to YouTube, their daily watch time tops 250 million hours a day. It will be available as a reserved placement for advertisers to ensure brands can drive the visibility they need on the dates that matter most. They can be purchased on a CPM basis, with audience targeting capabilities, and cross-screen or single-screen Masthead buying options. YouTube believes the rich audio and visual experience brought by the TV screen will create an upper-funnel drive greater than ever before.
Some companies have already started adopting the new campaign strategies. Ford, being one of them, has reported strong results. In alpha tests, the automaker lowered their campaign cost over 20% compared to their past YouTube campaigns. These new capabilities take advertisers’ guesswork out of creating comprehensive campaigns that utilize a series of ads. YouTube is becoming a stronger and more strategic partner by focusing more on marketing objectives rather than media.