4 Money-Making Benefits of Advertising on Youtube
- Tom Lewis
- Jun 27, 2024
- 4 min read
Updated: Jun 28, 2024
There are a ton of benefits to advertising on YouTube. But only if you know what you're doing and have a real plan.
You shouldn't spend money on YouTube ads without a strategy and plan— Unless you want to waste a lot of money.
Before running YouTube ads, you need to:
Know your target audience
Determine an ad budget
Have excellent copy and editing skills
Use A/B testing to test ad effectiveness
Understand YouTube Ads with SEO
With all that work and money on the line, is advertising on YouTube even worth it?
Is Advertising on YouTube Worth It?
Advertising on YouTube can be a valuable strategy for businesses, but whether or not it's worth it depends on your company's specific goals and target audience.
We'll be honest: YouTube ads aren't for every business. For example, you might not want to invest in this particular brand of advertisement if:
Your target audience isn't a primary demographic on YouTube.
Your product/services don't align with the platform.
You don't have a high ad budget.
You're not good at creating copy or content (and don't have the funds to outsource this essential work).
You don't know anything about running YouTube ads (and don't have the funds to hire someone).
Creating branded ads, in general, is not as simple as writing a post, adding a picture, and throwing money at it. It’s crucial to understand how to set up campaign objectives, audience demographics, and A/B testing.
Evaluating your goals, target audience, and budget is always a good idea before investing in any form of advertising, including YouTube.
We also recommend conducting a test run before scaling up your ad budget to gauge the effectiveness of YouTube ads for your specific business.
4 Money-Making Benefits of Advertising on Youtube
If you're still here, YouTube ads are likely a good marketing strategy for you!
Now that you know the downsides, let's discuss the benefits of YouTube advertising.
1. They have a vast audience
YouTube is the second most visited website in the world, behind only Google (the company that owns it).
With over 2 billion monthly active users, YouTube offers a vast audience for businesses to reach with their advertising.
2. They have the least strict targeted advertising
YouTube's advertising platform allows businesses to target their ads to specific demographics, such as:
Age
Gender
Location, and
Interests
This makes it easier for your business to reach your ideal audience and increases the chances that your ads will reach people more likely to be interested in your products or services.
3. YouTube has budget-conscious ad pricing
Compared to traditional forms of advertising, such as television and print, advertising on YouTube can be relatively low cost. You can create and run ads for your company on YouTube for a fraction of the cost of traditional advertising methods.
Additionally, because you can target YouTube ads, you're less likely to waste ad spending on uninterested audiences.
Plus, with PPC (pay-per-click) ads, you get to set the price of advertising. You’ll only have to pay anytime someone actually clicks on your ad. This means you can still get people to see (and recognize) your company repeatedly— without having to pay a dime!
4. The analytics are measurable and trackable
Youtube is owned by Google, which means you get to measure your ad performance through two lenses: Google Ads and YouTube Analytics.
You can track the number of:
Views: How many people have seen your YouTube ad.
Clicks: The number of people who clicked your ad (CTR or click-through-rate).
Interactions: How many people have liked, commented, and overall engaged with your ads
View duration: How long do people watch your ad? At what point of the ad do they click “Skip Ad”? The 10 second mark? 20 second? Or do most people watch iot from beginning to end.
This can help you understand the effectiveness of your advertising. These intricate analytics are one of the many benefits of advertising on YouTube because you’re able to make data-driven decisions to improve your YouTube ads.
Examples of Successful YouTube Ads
Below are 3 of High Tide Creative’s most successful YouTube ads. Why did each of these have such great results? Because we:
- Budget
- Planned
- Created
- Tested
- Created some more
And finally found what worked.
YouTube Ad Example 1: UNC Health Lenoir Bariatrics Video
Ad Objective:
Build awareness and increase calls targeting those interested in Weight Loss options and Surgery
Ad Cost:
$4,869 on media placement
Ad Results:
Received 109,655 completed views
What High Tide Creative Provided:
Created video and placed media
YouTube Ad Example 2: Wings Over Wayne Airshow
Ad Objective:
Build awareness and drive people to the airshow event
Ad Cost:
$2,900 on media placement
Ad Results:
Received 166,351 completed views
What High Tide Creative Provided:
Created video and placed media
YouTube Ad Example 3: New Bern Travel & Tourism
Ad Objective:
Increase tourism. Build awareness and bring people to New Bern, NC
Ad Cost:
$6,500 on media placement
Ad Results:
Received 119,371 completed views
What High Tide Creative Provided:
Created video and placed media
Looking for experts to create ads for you? Take your small business to the next level with High Tide Creative.
About High Tide Creative
High Tide Creative is an award-winning agency that provides a full range of digital marketing and advertising solutions that include strategic planning, creative services, brand and logo development, media planning and placement, social media marketing, digital advertising, website development, search engine optimization, video production, public relations and more. Our client list has included: UNC Health Lenoir, Hutchens Law Firm, Equifax, Georgia Pacific, Citi Group, Weyerhaeuser, The Atlanta Hawks, Randstad Staffing, Craven County Tourism, America Knits, Guardian Repellent, and The Shizzle Jerk Marinade.
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The point about A/B testing is spot on—most people skip it and just burn through their ad budget guessing. I've been using a split-testing tool that makes it way easier to compare thumbnails and hooks. https://stablevideodiffusion.net
The part about needing excellent copy and editing skills really hits home—so many people just throw together a quick ad and wonder why it flops. I've learned the hard way that even the best targeting won't save a boring hook. Speaking of visual quality, I've actually used a bad quality image maker to deliberately degrade some test thumbnails for a split test, just to see if the "ugly" version outperformed the polished one. It's a fun trick for A/B testing when you want to see if authenticity (or chaos) resonates better with your audience.
Really appreciate the emphasis on knowing your target audience before ever touching that ad budget—so many people skip that step and burn cash. Also, the tip about pairing YouTube ads with SEO is spot on. By the way, I keep a free startup tool value calculator I like to share: https://growth-navigate.com/