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YouTube Ads For E-commerce: How To Use It Effectively

Written by Emmanuel Emeka | Jul 13, 2022 11:08:59 AM

Most retailers have considered using videos to promote their online store for a certain period. But obstacles like cost and a lack of motivation have prevented the implementation of Youtube ads for e-commerce in their advertising campaigns. With over two billion monthly visitors, running compelling video advertisements across the YouTube platform to promote services will significantly increase clicks on your ads. But, what are the best ways to utilize Youtube advertising to drive sales significantly?

Despite being a great platform to promote products of all kinds, many marketers haven't taken full advantage of what Youtube has to offer. By Statistics, the average conversion rate for YouTube is 14%, which is 40% higher than what's obtainable on Facebook and all other social media site combined. With several targeting capabilities and various ad formats to choose from, coupled with multiple options for different goals and budgets, retailers can be sure of getting substantial results from their ad campaigns.

In this article, you will know to have an understanding of cost per view and types of youtube ads available to advertisers. Read on -to gain deeper insights on how to use youtube ads for e-commerce, along with effective strategies to boost sales within three nights.

What are Youtube Ads?

Youtube Ads are promotional video ads displayed alongside pertinent search phrases on the youtube video-sharing platform. Businesses can employ the various video ad types entirely or in conjunction with other display campaigns.

Note: YouTube advertising is only available through Google Ads because Google controls Youtube.

What Are True View Ads?

TrueView is a cost-per-view, choice or preference-based ad format developed by Google that is available on YouTube, throughout the web, and on millions of apps. TrueView provides better value to marketers because they only pay for real ad views instead of impressions.

Why Should You Use YouTube Ads For E-commerce?

These three factors influence e-commerce businesses' decision to use YouTube ads;

  1. Cost of Ad Campaigns

Compared to other internet advertising channels, YouTube ads are affordable. For instance, the average or median cost-per-view is inexpensive compared to the price of various keywords on Google Search Network, ranging from $0.010 to $0.3.

  1. Combined Leverage of Search and Social Media

The features of a social media network and a search engine are applicable to YouTube. It also employs a customer intent-based algorithm, just like Google. Due to this, advertisers can bid on focussed keyword phrases and display ads to meet the search queries of their market audience as users come to the website looking for specific solutions to questions.

Also, businesses can leverage the precise behavioral data that YouTube collects on each user to fine-tune their marketing strategies.

  1. Largest Video Platform

The popularity of video is on the rise right now. In product marketing, it is the most often employed content kind. As such, the YouTube video ads platform is one of the best channels to utilize if you decide to promote a service or product to market to your audience; since it doesn't have the distractions that other social networks offer as its users are constrained to watch videos only.

What Are the Types of Youtube Ads?

  1. Skippable in-stream ads

These advertisements (mid-roll or pre-roll) play during or before videos and allow viewers to "skip" them after five seconds. You only get charged (pay) when viewers watch the entire video, the first 30 seconds, or when viewers click on your advertisement—in other words, only when they don't press the Skip button. 

The opening five seconds of skippable in-stream video ads—which have at least a 12-second minimum length requirement—is crucial since you only have that time to capture viewers' interest and entice them to view more.

  1. Non-skippable in-stream video Ads

Often, users on youtube skip ads. To eliminate this issue, Youtube introduced these ad types to allow businesses to display mid-roll or pre-roll advertisements that viewers cannot skip. Advertisers pay per impression (each time a person watches the ad) at a rate per 1,000 views since streamers cannot ignore it). For these ads to capture a huge audience, they must be 15 seconds long and extremely effective.

  1. Non-video ads

On YouTube, non-video advertisements show next to relevant content. It mostly displays within search results or when a different video is playing. Like discovery ads, you only pay whenever anyone clicks on your advertisement. The two categories of non-video adverts on YouTube are:

Display Ads: When visitors are watching videos, these appear on the right sidebar and have a text, call to action (CTA), and an image.

In-video overlay ads: These are adverts -superimposed on top of already-existing YouTube channels' monetized video or visual content.

Note: Non-video ads are perfect for enterprises with a smaller budget who still want to take advantage of YouTube advertising because they are much less expensive to produce and deliver than video ads.

  1. Discovery Ads

The Discovery ads differ slightly from the pre-roll YouTube adverts. They don't play in the middle or at the beginning of other videos; instead, they appear alongside natural YouTube search results with a thumbnail and three lines of text. Visitors may be taken to your YouTube channel or page when they engage or click the advertisement. For e-commerce retailers utilizing this option, you only get paid when a user clicks on your ad.

  1. Bumper Ads

The shortest video ads are bumpers, which are limited to six seconds. Bumper ads are good for brand awareness. It displays following, during, or before the video the target audience is watching. Businesses can utilize these in broader awareness initiatives, whether in display or overlay advertisements that may be skipped or not.

Although, It is difficult to convey a comprehensive narrative in these extremely short videos. However, they work best for sharing succinct, distinctive messages that pique viewers' interests.

  1. Masthead ads

At the upper edge of the YouTube Home stream, masthead advertisements automatically begin to play for the next 30 seconds without sound. Masthead adverts are most effective at engaging a large audience or raising awareness for a new service/product.

Note: for each of the types of youtube ads, it's best to choose the one that fits your objectives and marketing budget.

How do You Make an Engaging Video Ad?

To make an effective ad on youtube, you must learn the unique ways to optimize your advertising campaign. Therefore, to get the most out of your ad spend, enterprises must deploy the following strategies;

  • Use high-quality captions

High-quality subtitles should be added to your YouTube advertising campaigns so that everyone can access them since some users don't watch the video ad with the sound on when the advert is showing.

  • Know your audience

Get a very clear notion of the audience you want to reach and thorough knowledge of their interests, difficulties, and objectives. Create client personas for each demographic category you wish to target with advertisements.

  • Deploy engaging visuals

Your videos must be of the finest quality and be distinctive because YouTube is mostly a visual platform. To make the promotional ad copy or video more focused and your advertisements more appealing, use an editing app or software to create a catchy visual.

  • Integrate a Call to Action (CTA)

Use a direct, concise call to action to tell the viewing audience what you want them to gain from the promoted ad, such as downloading a survey report, checking some info on your website, or signing up for new offers or a free demo of a product/service.

  • Create a powerful emotional experience

Consumers frequently make emotional decisions and then use reason to support them. Utilize sound, moving pictures, and a compelling story to accentuate selling emotions as a result.

Character traits in the fat-burning ad campaign inspire the target audience to envision transitions. First, the advertiser used a highly specific claim to pique interest: "Couple of tablespoons burns fat 728 percent faster." After that, the narrator feeds that interest by displaying before and after visuals. This clever tactic encourages customers to visualize their development and feel a connection to the brand.

  • Track Your Analytics

What is going well and what isn't will be clear from the data from your advertising and Google Analytics. For instance, if view time is extremely low, you may need to revise your advertisement's intro to make it much more captivating.

How to Use YouTube Ads for E-commerce

  1. Create a Google Ads Account

Start by linking your brand to a Google Ads account if you don't already have one. Open a new account here.

  1. Create a new ad campaign
  • Choose Video as the campaign type by clicking it.
  • Select a campaign objective (leads, website traffic, brand awareness, or reach).
  • Upload your desired video.
  1. Select the target audience

Google offers strong targeting possibilities for its YouTube advertisements. It enables you to focus on the individuals you wish to onboard. Select your target audience based on: interests, demographics, retargeting, e.t.c.

Learn More: How to create e-commerce personas for lead conversion

  1. Choose your budget

Choose whether you want to spend money daily or overall for the campaign's duration. 

How Can I Improve my YouTube ad performance?

  • To reach the widest audience, use keywords in the title and tags.
  • Use multiple videos to convey all facets of a concept, or make videos brief with clear points.
  • To gain the most views, think about posting videos at various times and days.
  • Make a title that people will remember. As such, your video should be brief but compelling.
  • Utilize top-notch images with text overlays.
  • Choose keywords that correspond to the search terms used by your target audience.

Frequently Asked Questions: Youtube Ads for E-commerce

Is Youtube Ad Good for E-commerce?

As we all know, video marketing is currently king. To this effect, doubt no more because youtube advertising is a suitable place to start when revamping your whole eCommerce marketing plan for video ads. Unsurprisingly, many more online retailers are hopping on YouTube ad popularity to promote their products.

Final Thoughts?

You may reach a large audience with YouTube ads that you might not have otherwise been able to reach. It's wise to give launching a video ad for your eCommerce firm a go if you're thinking about doing so.

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