Advertising on YouTube vs. on TV

The days of humming ad jingles and waiting for your favourite TV commercials have nearly phased out. With the internet boom and the fact that people now have the power to choose what they want to watch on YouTube, commercials have pretty much tapped in the reach of YouTube which has a farther reach than the traditional TV commercials. These days it does not matter whether you are watching an ad on your TV screen or on a pocket size screen on your mobile phone. YouTube has drastically changed the way we watch our favourite videos and has enabled the foray of ad industry on the digital platform. With over 225 million YouTube users a month in India alone, YouTube has defined the game change in the way we look at advertisements now. Here is the advertising trend expected in the new decade on the digital platform:

The reach of YouTube:

According to an estimate, by 2025 about 50 percent of the current TV audiences will unsubscribe to paid TV services thereby putting a period to watching commercials on TV. On the other hand, YouTube has at least five billion videos being watching each day. Plus at least 87 percent of TV viewers switch to their smartphones when a TV commercial airs during their favourite TV show. It is perhaps a clear call that ad films should be aiming at YouTube to roll out their budget.

YouTube can determine how well your ad is doing:

Who are the people who are watching your ad on YouTube? What kind of impact did the ad have on their purchase pattern? While television largely relies on Gross Rating Point or GRP to evaluate how often or at what time an ad must be played, YouTube has better tools to determine the reach of the ads. How does YouTube achieve this? By applying AdWords, YouTube can track the results of YouTube ads. From the kind of engagement that ads can have on social media in terms of likes and shares, YouTube can measure the performance of the ads with the VTR or View-Through-Rate. VTR mirrors how well your ad is doing.

Picking the right audience:

YouTube allows to choose its audience. It does so by reckoning various factors such as keywords, interests, demographics, and behavioural pattern. Depending on the information such as your age, gender, location and income YouTube can hand-pick its audience. Also, the keywords that you enter determine what kind of ads are going to be streamed. You can also re-target your audience if they have already visited your website by identifying them and placing your ad to these viewers.

The kind of ads you can place:

Didn’t you notice there were skippable and non-skippable ads? There are ads that are just about six seconds and there are longer ads. Besides, advertisements on YouTube are catergorized into the following:

  1. TrueView ads

The most common form of ads that you watch before a YouTube video plays and its lasts anywhere between 12 seconds to 6 minutes as the skippable ads. The non-skippable ads are just about 20 seconds. You are charged for a TrueView ad only if the ads have been watched entirely in case of a short ad film, or if it has been viewed for more than 30 seconds or if the audience takes a call-to-action. TrueView Ads are further categorized into:

In-Stream Ads: These typically appear before a video plays. One can skip these ads after five seconds and can have a call-to-action overlaying text in display.

In-Display Ads: These pop up on the YouTube homepage and the search results or can appear in pertinent videos.

  • Masthead Ads:

These ads appear on the main banner of the YouTube homepage. They aim at high reach and creating awareness. These kind of ads reach out to a wide demography and are charged on a daily basis, although it works cheaper than how much a brands can pay for the ad to air on primetime TV.

  • Bumper Ads:

These are the shortest ads that run just about six seconds just before a video is played on YouTube. Owing to little duration, advertisers concentrate on the main aspect of the brand that they want the audience to associate with.

All in all, advertising on the digital platform has already become the order of the day. It is not too far when advertisers might rethink before they look to dish it out on primetime TV.

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