The Importance of YouTube Advertising in 2021

Did you know that YouTube users spend on average roughly 25 hours browsing through content and watching videos on YouTube each month? With that in mind, it should come as no surprise that YouTube advertising should be a top priority for any business.

In this blog, we take a deep dive into the importance of YouTube advertising and share how you can leverage the exposure that the video sharing platform has to offer.

What are the stats?

More than 16 million Australians over the age of 18 log onto YouTube each and every month. And on average, they spend about 25 hours each month viewing content. COVID-19 played a major role in increasing viewership across Australia as the platform was estimated to reach roughly 93% of Australians aged 18-54.

YouTube has solidified its reputation as a key platform that has the potential to help businesses and brands reach their audiences and elevate their online presence to identify new customers. So, just how do you go about actually putting that concept into practice?

Different advertising strategies & methods

The most common type of advertisement on YouTube is called “pre-roll.” This type of advertisement is a short and simple video ad that plays just before the user’s chosen video. You’re certainly familiar with them, and you’ve likely seen them in action before. They can either be skippable after 5 seconds of viewing, or non-skippable. Additionally, you can choose a mid-roll or a post-roll advertisement as well, although these are less common.

Most videos don’t exceed 30 seconds. In fact, it would be better to create an advertisement that lands anywhere between 15 and 30 seconds long. Ideally, you would also want to test different video lengths throughout your campaign to see if you can determine that sweet spot.

“Bumper Ads” are extremely short pre-roll advertisements that last no longer than 6 seconds. These can be fun and creative, but it can also be rather difficult to convey a message in just 6 seconds. We always recommend combining these advertisements with longer videos for the largest impact.

From there, you can also use different CTAs like “Learn More” and “Shop Now” to compel viewers to follow through on your advertisement. Depending on which strategy or method you choose, you might want to change up your CTA.

What about pricing?

As you can see, you have a few options to choose from in terms of advertising methods, but what about pricing? How much could a short 6-second long Bumper Ad possibly cost? Well, YouTube works on a cost-per-view (CPV) basis. For a TrueView in-stream video ad – a pre-roll – you’ll only pay when someone watches 30 seconds of your video, or if they watch the entirety of an ad that is less than 30 seconds long. Additionally, if a viewer engages with your ad, you would also pay for it.

Measuring the response

As with any type of advertising, it might seem difficult to really gauge the return on your investment. Luckily with YouTube, it can be relatively simple to see just how well your advertisements are performing.

With that said, there are a few ways to measure your success. First, you can begin by analysing your CPV and the percentage of users who watched more than 75% of your video advertisement.

Typically, you’d want to aim for about $0.05-$0.10 CPV, and you’d want to see that at least 30% of viewers watched 75% of your advertisement. Additionally, you can take a look at a few other metrics like impressions and attributed sales, but engagement is going to be the biggest indicator of success.

Don’t forget about brand awareness

Even if your videos aren’t breaking that 30% benchmark, it’s important to keep in mind that brand awareness is certainly still in play. Your videos can lead to increased search volume, and other metrics that you can track via Google Ads. For instance:

  • How does it fit into the rest of your paid search / social strategy?
  • How does it fit into a wider marketing strategy / your brand awareness?

Remember, YouTube ads are ideal when your goal is to increase your brand awareness, launch a new product, or to use as a component of a larger marketing campaign. If you are running a wider marketing campaign, YouTube advertising can help top drive reach and increase brand visibility. Targeting can be defined on a small-scale, or on a broad-scale depending on your budget and your KPIs. Additionally, the platform is wonderful for reaching a particular audience for the very first time, or if you are trying to grow your brand from the ground up.

5 tips for an effective YouTube Advertising strategy

1. Determine your goals, objectives, & KPIs

First, you need to determine just what it is that you want to achieve with your YouTube ad campaign. Do you want to find new customers within your current targeted demographics? If so, you might want to use lookalikes. If you want to reach a brand new audience, try YouTube’s broader interest audience targeting options to make the most out of your strategy.

2. Granular campaign setup

When you are able to distinguish what is working versus what isn’t, you can optimise the best performing audiences and split up your campaigns into a granular fashion. For instance, you should have one ad group for lookalikes and another for interest audiences.

3. Don’t forget about Google’s automation

Did you know that you can set up automated optimisation when looking at a particular Cost Per View or conversion goal? When given enough time, Google’s automation algorithms will ensure that your campaign optimises itself to hit your targets.

4. Set frequency caps

Setting frequency caps is critical toward reducing the effects of boredom and overexposure. No one wants to see the same YouTube ad over and over again, so we recommend limiting a campaign to about 3-5 impressions per user per day.

5. Refresh your content

Don’t forget to refresh your ad content from time to time. You don’t want to experience creative fatigue, so it is always a good idea to refresh your content monthly.

Bonus points

Before we close out this article, take a look at some of our achievements from a pre-roll YouTube ad campaign that we recently ran for a global sportswear and footwear brand using all of the tips, strategies, and insight that we provided for you in this article:

  • Over the course of 4 weeks, we reached almost 500,000 unique users in Australia.
  • For key audiences, purchase intent increased by 13%.
  • Brand keyword impressions rose by 23% compared to the previous period and 10% compared to the previous year.
  • This campaign activity is likely to be repeated on many occasions in 2021.

If you’re interested in learning more about how you can create an optimised YouTube ad campaign, contact us to learn more about how we can help.

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Sept 20, 2022

Global Ecommerce Weekly News: 20th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon to raise pay and add extra work benefits for delivery drivers Following the rise in fuel prices and protests by Amazon workers, the ecommerce giant is raising its delivery drivers’ pay and adding more work benefits. Amazon has mentioned that it will be investing $450 million into rate increases along with an education program and a Delivery Service Partners program. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/amazon-to-raise-delivery-drivers-pay-and-add-more-work-benefits/) Amazon announces it will give away shipping software to merchants at no cost Amazon has recently announced that it will be giving ecommerce merchants free software to manage shopper orders on and off its platform as it extends its reach. The ecommerce giant will be ending monthly costs for sellers using Veeqo, a shipping software it recently acquired and instead offer to them a new, free shipping software. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/amazon-to-give-away-shipping-software-to-merchants/) --- Other Marketplace News --- Walmart unveils new virtual fitting rooms In an effort to drive clothing sales, Walmart has launched virtual fitting rooms while competitors reduce spending amid the cost of living crisis. The virtual try-on tool can be used by Walmart customers to virtually measure the clothing items and see how the products would look on them. Shoppers will now be able to see how over 270,000 clothing items on Walmart’s ecommerce site would look on their bodies. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/walmart-launches-virtual-fitting-rooms-to-drive-clothing-sales/?utmsource=Retail+Gazette+Subscribers&utmcampaign=2da7f0f8f8-EMAILCAMPAIGN202209150742&utmmedium=email&utmterm=0d23e2768b6-2da7f0f8f8-61040615) THG slashes sales and profit expectations The Hut Group has slashed its forecasts for 2022 as rising interest rates, inflation and energy costs take a toll on consumers. Previously, THG estimated its sales growth to be between 22-25% but after a recent evaluation, has lowered this prediction to between 10-15%. Initial predictions did not take into account the negative effects of ceasing sales in Russia and Ukraine along with the impact that the cost-of-living has had on consumer spending. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/15/thg-slashes-forecast-as-cost-of-living-crisis-hits-consumers-wallets/) --- Other Ecommerce News --- DHL and Post Office team up to provide click and collect services Through a partnership between delivery company, DHL and Post Office, a new click and collect service is to be tested at Post Offices before rolling out to over 1000 branches across the UK. Online shoppers will now have the option of choosing their local Post Office as a collection point, and DHL will fulfil the delivery aspect, opening up networks for both parties. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/14/post-office-partners-with-dhl-express-to-provide-click-and-collect-services/) US consumer watchdog plans to further regulate the BNPL sector The US Consumer Financial Protection Bureau (CFPB) has raised concerns regarding the collection of consumer data and the fast-growing nature of the BNPL sector, which includes companies such as Affirm and Klarna. The CFPB is worried that these companies could be negatively impacting consumers’ financial health and aims to put better regulations in place to ensure consumers are safe and empowered. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/16/us-consumer-watchdog-to-start-regulating-bnpl-sector/) Japanese ecommerce market estimated to grow by 6.9% in 2022 The ecommerce market in Japan, largely dominated by domestic online retailers including Reakuten and Mercari, is set to reach $194.3 billion USD in 2022, after seeing an annual compound growth rate of 5.2% between 2018 and 2021. This makes Japan the fourth leading ecommerce market globally, following China, the US, and the UK. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/13/japan-ecommerce-market-to-grow-by-6-9-in-2022/) Ecommerce brands are spending more on TikTok ads TikTok may soon be surpassing Facebook and Google as the most lucrative advertising channel, with ecommerce brands spending 60% more on TikTok ads in Q2. Facebook is still ahead as the top choice for ecommerce advertisers but only grew by 5.6% from Q1, while Google grew 20.5% in Q2, and Snap declined 10.8% in Q2. [Read more on SearchEngineLand](https://searchengineland.com/ecommerce-brands-spent-60-more-on-tiktok-ads-in-q2-387876)
Sept 13, 2022

Global Ecommerce Weekly News: 13th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon scales back on US warehouse facilities Amazon is shutting down two facilities with 300 employees, discarding plans for 42 facilities, and delaying plans to open a further 21 buildings across the US. The ecommerce giant is scaling back on hiring as well as the expansion of its vast delivery network, as it was left with an excess of space following its rapid expansion during the pandemic. [Read more on Business Insider](https://www.businessinsider.com/amazon-closes-2-facilities-scraps-plans-42-new-buildings-report-2022-9?r=US&IR=T) --- Other Marketplace News --- JD.com is ‘betting’ on ecommerce grocery market Amidst a slowing economy and a decline in ecommerce, Chinese ecommerce giant JD.com has increased its urgency to seek new growth engines. The company is looking to boost its online grocery business through offline partnerships and expansion into lower-tier cities, where it may be able to unleash more consumption power. [Read more on The Star](https://www.thestar.com.my/tech/tech-news/2022/09/08/chinese-ecommerce-giant-jdcom-bets-big-on-online-grocery-lower-tier-markets-amid-slowing-economy) Shopee shuts operations in Argentina, Chile, Colombia, and Mexico Sea’s ecommerce arm, Shopee, has shut local operations in some LATAM countries but will continue to maintain cross-border operations in a few markets. Latin America is Sea’s most important region following South-east Asia, accounting for close to 19% of its revenue in 2021. The move away from these countries is largely due to increased levels of macro uncertainty and rising interest and inflation rates, and rather putting a focus on its core operations. [Read more on Straits Times](https://www.straitstimes.com/business/companies-markets/seas-shopee-shuts-operations-in-argentina-chile-colombia-mexico-sources) --- Other Ecommerce News --- Instagram scales back in-stream shopping elements Instagram is re-examining its approach as it hasn’t been able to make ‘fetch’ happen. ‘Fetch’ in this context being the online shopping trends which have become all-consuming in China, and what Western social platforms have been hoping to add into their apps to make them more addictive and revenue-generating. Consumers have not been swayed by the latest shopping tools on TikTok and Instagram, leading to Instagram scaling back its in-stream shopping program. [Read more on SocialMediaToday](https://www.socialmediatoday.com/news/instagram-scales-back-in-stream-shopping-elements-as-it-re-examines-its-app/631276/) FedEx Express supporting the growth of cross border ecommerce FedEx express has expanded its international commerce shipping service to four more markets across the Asia Pacific, Middle East and Africa (AMEA) region in an effort to support the strong development of ecommerce in this region. Three of the fastest growing markets, the Philippines, Indonesia and Vietnam are leading Southeast Asia’s ecommerce sales, which is set to reach $100 billion by 2023. [Read more on Post & Parcel](https://postandparcel.info/149889/news/e-commerce/fedex-express-supports-the-growth-of-cross-border-e-commerce-within-the-amea-region/) India ramps up hiring as companies prepare for shoppers Ecommerce companies are getting ready for the festive season by rapidly expanding their temporary workforce. As ecommerce in India grows, the country is predicted to have 372 million online shoppers by the end of 2022. The festive season this year, running from October to December, is expected to see a two-fold increase in logistics and delivery alone. During this period, companies are predicted to add 20% more to their existing workforce base, with a 8-10% higher pay scale compared to last year. [Read more on Business Insider India](https://www.businessinsider.in/business/ecommerce/news/the-great-indian-festival-of-hiring-e-commerce-companies-gear-up-for-indias-shoppers/articleshow/94000346.cms)
Sept 6, 2022

Global Ecommerce Weekly News: 6th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon announces new inventory and distribution service, AWD Amazon has launched Amazon Warehousing and Distribution (AWD), providing inventory and distribution services to its sellers as a means of addressing current supply chain issues. AWD is now available for sellers using Fulfilment by Amazon (FBA), i.e. outsourcing their fulfilment to the platform. Amazon has plans to expand the service outside the platform in 2023. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/02/amazon-introduces-new-service-to-help-solve-supply-chain-challenges/) Amazon Web Services (AWS) launches in the UAE AWS, Amazon’s cloud-computing platform offering, has launched its second region in the Middle East and now provides its services in the UAE. The move will now allow anyone in the UAE who utilises cloud technologies to harness AWS’s advanced platforms and APIs. An estimated $11 billion USD is expected to be added to the UAE’s GDP thanks to the implementation, with an average of 6,000 external vendor jobs to be created annually. AWS is now available in 87 zones across 27 regions, with sights set on expanding further across Australia, Canada, India, Israel, New Zealand, Spain, and Switzerland. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/30/amazon-web-services-launches-region-in-uae/) --- Other Marketplace News --- Lazada to launch in Europe Alibaba-owned ecommerce platform Lazada is set to launch in Europe, marking a refreshed internationalisation push from the company. The move follows toughening economic conditions and performance in Southeast Asia, advancing the need to tap overseas markets. In Europe, Lazada will face tough competition from giants like Amazon and Zalando. Lazada’s exact entry strategy is to be confirmed and will be reliant on macroeconomic and market conditions, according to Lazada CEO James Dong. [Read more on DigitalCommerce360](https://www.digitalcommerce360.com/2022/09/01/alibabas-lazada-to-take-on-amazon-zalando-in-europe-push/) Chinese ecommerce giant Pinduoduo to launch cross-border platform in the United States Pinduoduo, a Chinese ecommerce giant rivalling Alibaba and JD, has announced it will be launching a new cross-border ecommerce platform. The marketplace is set to launch in the United States next month, as part of the company’s larger push into new markets. Pinduoduo found success in China thanks to its rock-bottom price offerings and harnessing of social commerce marketing, emulating strategies similar to fast-fashion giant Shein. [Read more on Yahoo Finance](https://uk.finance.yahoo.com/news/pinduoduo-launch-international-e-commerce-034129263.html) Alibaba launches its biggest B2B sales event, ‘Super September’ China ecommerce giant, Alibaba, has now launched its month-long B2B sales event ‘Super September’. The event provides 40 million buyers and 200,000 suppliers with the ability to connect on the platform, showcasing a ‘virtually unlimited’ number of products. The event hopes to foster new cross-border business relationships to tackle supply chain challenges currently faced by businesses. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/alibaba-launches-super-september-b2b-sales-event/) --- Other Ecommerce News --- Klarna’s losses quadruple in first half of 2022 BNPL provider, Klarna, has reported losses of $581 million USD for the first half of 2022. This figure is almost four times larger than a year earlier, where $129 million USD in losses were reported. The company attributes the losses to employee costs, technology investments, and rising credit losses. Klarna’s figure reporting comes amidst worsening economic conditions, fresh legal and regulatory scrutiny, and pressure from Big Tech competitors. [Read more on The Financial Times](https://www.ft.com/content/483451db-9221-4ca4-83a6-b4ddc6bfcfbb) [Read more on the Guardian](https://www.theguardian.com/business/2022/aug/31/klarna-losses-more-than-triple-as-consumer-spending-slows) One fifth of Snap employees to be laid off amidst poor financial performance Social media platform Snap (‘Snapchat’) has announced it will be laying off 20% of its employees and closing out a number of projects following a year of poor financial results.The move will see 1,200 employees globally lose their jobs, saving the company an estimated $500 million USD in costs. Snap is currently valued at $20 billion, an 84% decrease from its valuation of $130 billion last year. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/01/snap-to-lay-off-20-of-its-workforce-and-wind-down-a-number-of-projects/)