Did you know that people worldwide, from the US to Africa watch 1 billion+ hours of video on YouTube on any given day?
Of this number, 70% purchased a product after viewing its ad on the platform.
And contrary to popular perception, YouTube isn’t a social media platform… It’s actually a search engine, like Google.
The second-largest in the world, in fact. It handles 3 billion+ searches per month. That’s more than the combined searches on Yahoo!, Bing, AOL, and Ask.
Mind-blowing, right?
But why are those statistics relevant to you, as a side hustler?
Well, they are telling signs that YouTube is an effective platform for marketing any kind of brand or business, whether you’re selling products or offering freelance services.
How? Two words: YouTube ads.
YouTube ads target specific audiences and make it easy to find exactly who you want to reach. So, you can focus on a captive market and increase conversions.
If you’re looking to grow your side hustle or dream of someday ditching your 9-5 for it, YouTube ads maybe your best ride to get there.
Okay, I won’t lie; taking advantage of the platform’s full potential takes some knowledge and effort. However, the beauty is the wide range of available options.
There are many different types of advertisements on YouTube, as well as strategies that can help you get the most out of each one.
That’s what we’ll talk about in this newsletter.
In the end, you’ll understand why you should seriously consider YouTube ads as an option to boost your side hustle.
What you can expect this week
- Trends. What’s the state of play when it comes to YouTube? We share the latest stats and research about this video-sharing platform.
- Strategies. Get out of your marketing comfort zone and be more adventurous with your advertising tactics! Trust us, your bottom line will thank you for it.
- Tool of the Week. Discover the global platform that provides solutions to your YouTube ads challenges, from producing material to managing campaigns.
Let’s jump in!
Trends
To determine whether or not YouTube ads are right for you, we’ve done some research into the cost and reach of this platform compared to other alternatives. Enjoy!
Top Websites Worldwide
YouTube attracts a whopping 34 billion visitors per month, second only to Google in terms of its reach. This is a huge audience of engaged video-watchers in just about every industry. Think about the possibilities.
Desktop vs Mobile Traffic
Interestingly, YouTube still has almost 80% of its traffic from desktops. While mobile users are on the move and quick to scroll onto the next app or get distracted, desktop users are highly engaged. You can capture their attention with YouTube ads when they’re ready to take action.
Average Time Spent on Website
YouTube knocks all other search engines and social networks out of the park when it comes to the time spent on its website. It holds your customers’ attention for twice as long as anywhere else – now that’s intriguing!
Average Cost of YouTube Ads
Cost Per Click
YouTube sits somewhere in the middle when it comes to its cost per click compared to social advertising sites. In isolation, I don’t think this information would sway you either way, but it’s interesting to know that it’s relatively fair in its pricing.
Cost of Reach
Again, YouTube’s cost to reach 1,000 people is not dramatically different from other social networks. So if you think video ads, engagement, and desktop users are worth the spend, it’s worth trialing.
Strategies
YouTube advertising is a cost-effective and easy way to reach customers. The platform boasts more than 2 billion unique monthly users, and in the US alone, 62% visit on a daily basis.
But wait, there’s more!
There are local versions of YouTube in 90+ countries available in 76 languages.
PLUS, when you advertise on YouTube, you can easily measure your performance against your goals by using Google Analytics for video. Thus, you can see how many people watch your video all the way through or click through to your website from an ad.
It’s clear that YouTube is a great place for side hustlers to connect with new and existing customers.
Now it’s time to buckle up and learn the ropes.
What are YouTube Ads?
YouTube videos can be sponsored or promoted by advertisers. When YouTube users view any video content, they are shown a brief advertisement before they watch it.
These adverts may be in either video or static format. Most marketers prefer video ads to stand out from competitors, especially when they want to create a buzz around a product launch.
Still, there are many reasons why a static image ad would be best for certain types of products or services. For instance, if you’re offering financial services, a static image might work better.
For side hustlers, the best part about YouTube is its inclusivity. Virtually every topic on the planet – from baking cakes to traveling the world on a shoestring budget – can be converted into video content. This means any product or service enjoys a plethora of choices to run ads that your target audience watches.
And while it’s true that ad competition is stiff (as more and more marketers get wind of this goldmine), you can be assured that even the average video gets thousands of views.
Types of YouTube Ads
Depending on your marketing goals and budget, these are the video ad format options available to you:
Skippable In-Stream Ads
If you’ve ever watched a video on YouTube, I’m sure you’ve seen these ads. They appear before, during, or after a YouTube video.
Viewers can skip the ad after five seconds, and an advertiser is charged only when they watch 30 seconds of the ad or engage with the video. According to research, over 70% of viewers skip these ads.
Non-Skippable In-stream Ads
Non-skippable in-stream ads are, well, unskippable. A viewer has no choice but to watch the entire ad – usually 15 seconds long – before they can continue viewing the desired video.
Typically, advertisers bid for how much they’re willing to pay per impression. This is referred to as CPI, or cost per impression.
In-Feed Video Ads
This type of ad is found next to a list of related YouTube videos, as part of a YouTube search result, or on the YouTube homepage on mobile devices.
A thumbnail image from the video and some text is visible in this ad format. In-feed video ads invite viewers to click the video, which then takes them to the channel’s home page or the YouTube watch page. Advertisers will pay only when viewers click their video ad.
Bumper Ads
Bumper ads are short ads – not more than 6 seconds long – that appear before, during, or after another video. Viewers cannot skip these ads, and advertisers pay based on impressions.
Created to target the increasing number of smartphone users, bumper ads play an important role in raising brand visibility and getting a brand name on an audience’s radar.
Masthead Ads
These ads appear at the top of the YouTube homepage for 24 hours. They play automatically and include an information panel on the right side. Once the video is done, the main video becomes a thumbnail that plays only when the viewer clicks it.
For mobile users, the masthead plays without sound for the duration of the video. It features a video thumbnail, description texts, a call-to-action (CTA), and a headline. When they click on the video, it automatically plays on YouTube Watch.
A masthead ad also appears on a smart TV on top of the YouTube app in a widescreen format. It plays without sound for the entire duration, and users can interact with the ad using their remote control.
Since masthead ads are exclusively available on a reservation basis, advertisers and serious side hustlers must contact a Google sales representative for placement.
Non-Video Ads
In-Video Overlay Ads
Also known as static ads, this non-video YouTube ad appears at the bottom of a video when it starts playing and can be text-only or text with an image in GIF, JPG, or PNG formats.
Like the video ads mentioned above, overlay ads are clickable and redirect users to the advertiser’s website or landing page. Viewers may also close them by clicking the X on the upper right-hand corner.
Banner Ads
Sometimes referred to as companion ads because they are placed next to video ads, banners are visible only to laptop and desktop viewers. Advertisers may customize the ad or have Google Ads create it from their YouTube channel if they own one.
When a viewer clicks on a banner, YouTube counts it as a view even if they don’t watch the entire ad it accompanies.
How To Advertise On YouTube
Before we dive into this, let’s address the all-important question:
Do you need to have a YouTube channel to run YouTube ads?
No, but you do need a YouTube account plus a Google account with valid credit card information. This can be your personal Gmail account if you have one already. If you don’t, set one up before you start driving traffic and making money on your website.
There are a couple of requirements before you can advertise your side hustle on YouTube. First and foremost, you will need to: create and upload a video ad on the platform and then set up an ad campaign on GoogleAds.
- Create a Video
Plan, develop and execute the content for your video (script, visuals, actors, format). You want to ensure it suits your target audience and is as professional as possible. Sounds daunting? Don’t worry; our Tool of the Week at the end of this newsletter will help you with all of that.
- Upload Video on YouTube
This is pretty intuitive – just log in to your account, click the “upload video” icon, and select the video you want to upload.
For a successful ad campaign, we urge you to fill out all the information required for the video, such as title, tags, and description.
- Create a New Campaign
Head to your Google Ads account. Click the “all campaigns” button and then the plus sign to add a new campaign.
You have five campaign-type options: Search, Universal App, Shopping, Video, and Display. Select “Video” and choose a goal you want your campaign to achieve. For example, do you want to generate leads, conversions, or awareness?
- Configure Your Campaign
This step allows you to monitor the campaign’s progress and ensure you’re on track to reach your goals.
Set a Daily Budget – The amount is based on how much you’re comfortable spending each day. It also determines your ad frequency.
Add a Start and End Date – This step gives you control over how long your campaign runs. Most experts agree that three months is the ideal duration.
Choose Where Your Ads Appear – Video advertisers typically have three choices:
- YouTube search results
- YouTube videos and homepage, and your channel page (if you have one)
- YouTube video partners (all of Google’s advertising channels, not only on YouTube)
Select Country and Language – Choose the location where you want your ad to be visible.
Select an Ad Payment Strategy – Decide on your preferred payment plan. Here are your options:
- Cost-Per-View is based on the number of views and interactions your video receives.
- Cost-Per-Thousand Impressions means you will pay when your video reaches 1K impressions.
- Viewable Cost-Per-Thousand-Impressions is a strategy wherein payments are due only when a video is viewed in its entirety.
- Cost-Per-Acquisition depends on specific actions completed by viewers, such as buying, subscribing, or filling up a form.
Select an Inventory Type – Doing this ensures that your ad will appear only on video content in line with your branding and target audience. You can choose one among standard, limited, and expanded.
Furthermore, you may “exclude” certain types of content if you don’t want your ad to appear on videos with controversial or sensitive topics.
5. Select Your Target Audience
This helps YouTube place your ads in videos where they can be seen by people most likely to buy your product or service. Categories include age, gender, occupation, civil status, and interests.
6. Choose the Content Where Your Ad Appears
Use keywords to find content related to your ad, and then select a topic from the search results. Select one that suits your target demographic.
You can also choose where to place your ads in the video content. Leaving this option empty will allow YouTube to match your other target settings.
7. Configure Your Video Ad
You’ll need to select a video format. YouTube offers options based on the campaign configurations you completed earlier. You then add your URL, CTAs (if any), and headline.
Don’t forget to save, then click “Continue to Campaign.” Your YouTube video ad campaign is now up and running!
YouTube Ads Best Practices
Your first ad campaign might not generate as many views as you’d like, but don’t be discouraged. There are several reasons why your video might not have generated many views, all of them solvable.
Here are the important things to keep in mind as you embark on your YouTube Ads journey:
Mind Your Keywords
If you haven’t done your research on keywords and how they relate to what you offer, it may be best to wait before placing a high-dollar bid for your first video.
It’s important to do keyword research to determine which terms will help drive relevant traffic.
Create Excellent Text Content
Keep Your Message Clear And Simple
When people click on an ad, they should know exactly what they’ll get out of it. They must be able to make an informed decision about whether or not to click on your link or watch your video.
Call-to-Action (CTA)
A CTA is an instruction to viewers on the action you want them to take next. For example, Buy now! or Click here!
The main purpose of CTAs is to get people who watch your video to actually click through and visit your website. Not having a CTA can prevent you from getting more views in the future because viewers won’t know what to do once they finish watching.
Optimize Your Ad
Play To Rank
As with Google, the YouTube algorithm is a well-kept secret, but tests conducted by marketers show that optimizing the following elements highly impacts your ads:
- Number of views
- Video title
- Description
- Ratings (Likes and Dislikes)
Maximizing character limits also make your ads Google-search-friendly. For more tips on optimizing your YouTube ads, check out this 4-step guide from Global Reach.
Appealing Thumbnail Image
Whatever thumbnail image you choose for your video should be attractive enough to draw people in. If it looks boring or unprofessional, then chances are good that people will move on without clicking play.
Keep the Length Within 20-30 Seconds
While this is not a rule set in stone, keep in mind that you have less than 30 seconds to convey your message. Around 20% of YouTube users hit the Skip Ad button after 10 seconds.
You may also want to consider breaking up your video ad into two or more separate videos that play sequentially. Ads on YouTube are skippable after five seconds, so you don’t have long before your audience loses interest.
Ensure Fast Loading Time
Videos that load slowly can result in lost viewers. The same goes with the landing page to where the ad redirects them.
In fact, 50 percent of users abandon sites that take longer than three seconds to load. And if yours takes longer than five seconds? You just lost 85 percent of potential customers.
To make sure your ads and landing pages load quickly, test out different versions and pick those that perform better.
Consider Mobile Device Users
Over 50% of YouTube views are conducted on mobile phones and tablets. Make sure your ads are designed and optimized for smaller screens.
Invest In Quality
Viewers tend to skip over videos that look blurry, grainy, pixelated, or are otherwise of low quality. High production value doesn’t necessarily mean higher view counts, but poor quality almost always means fewer views.
No Surprises
Unexpected content can be annoying, so always include a preview image along with a link to your landing page within your ad text. This way, viewers won’t accuse you of baiting when they click and play.
Tool of the Week
Ever heard of Fiverr?
This conglomeration of freelancers includes copywriters, videographers, and ad campaign managers.
Fiverr freelancers can help you create video and static YouTube ads and manage your campaigns as well. They could also help make your thumbnail and social media ads to target your audience on YouTube.
Fiverr’s pricing is ultra-competitive. It’s one of those sites where you get what you pay for. While it’s not advisable to hire cheap freelancers who will probably deliver an inferior product, it’s also not worth paying top dollar based on an impressive portfolio or number of Twitter followers.
Finding good talent requires time and effort, but once you do, consider working with them regularly, so you don’t have to start each project from scratch.