YouTube is continually adjusting and updating how the video-sharing platform works with advertisements. With their new TrueView Ads for Reach tool advertisers can reach interested customers in a more efficient manner than before. #videomagic
The dominant system of advertising on YouTube is TrueView where companies can make ads of any length and they will be displayed either in-stream (on screen) or in the suggested videos or video discovery. Advertisers would be paid only when viewers either watch 30 seconds or the whole ad, whichever is shorter, or clicks on the ad and interacts with it.
TrueView Ads for Reach, however, optimizes reach to make sure ads are seen by people who are most likely to have an interest in their product or services. The new ads will function as before, but advertisers will be able buy ads based on the value of the CPM (cost per thousand impressions). Viewers will still be able to skip these ads.
During beta testing of this feature, YouTube says it noticed that 9 out 0f 10 campaigns in a total of 84 drove a big lift in ad recall – the number of viewers able to remember the ad later – about a 20% lift on average. The company was also eager to point out that, according to an Ipsos study, people are 3x more likely to pay attention to online video ads than TV ones, meaning that this new feature will have a strong impact for advertisers.
Additionally, YouTube has a third type of advertising called TrueView for Action. Advertisers can pay for a branded banner below the video often linking users to the advertiser’s website.