YouTube TrueView Advertising Cost Per View

YouTube TrueView

It is January 2016. You understand what that means: A month-long series of stories about brands that will spend from $4.5 million to $6 million for a 33-second spot that will air throughout Super Bowl 50. Because last year’s Big Game was the most viewed TV broadcast of all time in the U.S. That is why EverLesson.

So, let’s do the math. It cost around $4.5 million for a 30-second spot, or about $9.0 million for a 60-second commercial during the Super Bowl, last year. And, the average customer reached during the Big Game was 114.4 million viewers. The average cost per view (CPV) of an advertisement that was 30 seconds was about $0.04 last year. If the advertisement were 60 seconds, like “Clash of Clans: Revenge (Official Super Bowl TV Commercial),” then the average CPV was approximately $0.09.

Of course, this supposes that TV viewers view all the business during time off in the Super Bowl, instead of heading to the kitchen to take another can of Budweiser & some more Doritos. Maybe, this explains why Anheuser-Busch InBev generally opens one of its new PepsiCo’s Frito-Lay and Budweiser advertisements ONLINE typically concludes its annual “Crash the Super Bowl” contest to get watchers to choose their favorite consumer-generated Doritos advertisement ONLINE, several days before Super Bowl Sunday.

YouTube TrueView Advertising Cost Per View

Google Sites, driven primarily by video watching at YouTube.com, arranged as the top online videos content property in October 2015 with 174.6 million unique users in the U.S. In other words, YouTube draws an audience that’s 52.6% greater than America’s most viewed TV broadcast of all time. YouTube does that month in and month out.

So, what is the equivalent CPV for a TrueView plan on YouTube? According to the Tubular Labs benchmark, it was $0.06 a year ago, but nearby $0.08 today in the U.S. (The benchmark contains all 2014 & 2015 US plans managed by Tubular Labs. The plans select were managed by Tubular Labs with the purpose of acquiring watches using TrueView InStream. Data above is based on historical plans. AdWords performance and pricing is subject to change based on AdWords buying behaviour. All plans excluded Google Display Network.)

Of course, there’re other variables. In addition to the nation that you are targeting, overall asset quality and asset length will also typically impact price. So, the average CPV can change. For example, $0.08 for a 5- to 7-minute asset and $0.11 for assets that is over 7 minutes. The more targeted your user, and the share of voice you are getting (spend level per day divided by target user size) will also change your average CPV. It also depends on your video advertisement’s view rate, since higher view ranks tend to have lower CPVs.

But, in general, $0.09 is an excellent CPV for a TrueView plan in the U.S. for an asset that’s under 6 minutes. Unlike TV, the normal CPV on YouTube remains the same whether your TrueView video advertisement is 60 seconds or 4 minutes

However, this means that the normal CPV of Super Bowl commercials which are 62 seconds is roughly equivalent to the normal CPV for YouTube video advertisement  which are 60 seconds. So, what should video marketers do with this plan insight?

Shifting Advertisement Dollars from TV to YouTube

Well, based on YouTube Brand Lift data and recent research, you have two selections – the video marketer’s equivalent of the “selection play.” One selection involves combining YouTube and TV. For instance, Google recently commissioned Nielsen to conduct a research of 2,984 TV plans in the U.S. and look at how the total achieve of millennials would be impacted if these plans had replaced some of their TV advertising with YouTube advertisements. The research found that without spending an extra dollar, 46% of the campaigns would have benefited from an YouTube and TV combo, with an average raise in millennials reached of 43% compared to TV alone.

Boosting existing TV plans with YouTube advertising also raises brand metrics. In another recent YouTube Brand Lift research of 656 plans, brands that added TrueView to TV saw relative lifts of 19% in brand awareness, 22% in ad recall, and 14% in consideration among their YouTube user.

The other selection involves moving dollars allocating to TV to YouTube. To find out if advertisers can suppose a better return on their advertisement spend (ROAS), Google teamed-up with MarketShare and use a solution well-known to many class marketers: media mix modeling (MMM). MMM can give an insight into which advertising channels have the good ROI, and what effect would look like if more media dollars were assigned to those channels. By looking at the average group media creator made by publishers, they realized that your ROAS should be higher on YouTube.YouTube TrueView

Across the categories MarketShare and Google looked at, brands were found to be investing at least two-thirds of their media accounts on solely on television. But that needs to change as advertisement spend on YouTube can produce a higher ROAS – from nearly 6.4 X for shampoo, 2X higher for smart phones to 4.9X for soda, and 8.5X for toothpaste. Higher ROAS is tied directly to increased profits. One group highlighted was that of action movie tickets. Google saw that at average spend levels, $2 spent on TrueView generated 7X the box office profits of $2 spent on TV. For action movie tickets, a 20% shift of advertisement budget from TV to YouTube would have developed marketing-driven profits by an impressive 26%.

So, whichever selection play you want, the effects are much more likely to be significantly bigger than the typical “three yards and a cloud of dust” that you are likely to get from sticking with TV commercials.