Displaying video ads on youtube and millions of 3rd party websites are trending to be one of the best ways mediums to spend your marketing dollars. Users watch videos and interact with websites in many different ways. For that reason, there are lots of different online video format options marketers have to choose from. These options include how online video advertisements are seen and how to pay for them. In this educational blog we’ll attempt to showcase the different types of online video advertisements, how they are charged, and the marketing strategies behind each.
Options For Displaying Online Marketing Videos
Every marketing campaign has its own goals, budget, audiences, and timeline. Online video advertising allows our online marketing consultants to tailor a unique campaign experience that is able to efficiently complete all of our clients campaign objectives. We utilize the three most popular ways to showcase online video ads. Each provide a unique user experience and when used correctly will elevate a product, service, and/or brand.
In-Stream Video Ad
This online video placement option is what most user associate with online video ads. In-steam video ads are displayed on Youtube & display partner websites before, during, or after videos. Users have the option to skip the video after 5 seconds. Don’t worry if a users skips your video quickly. The most popular way to pay for these ads “True-View” only charge marketers when the video has been watched for over 30 seconds and if the ad is less than 30 seconds, users need to complete the entire ad.
Benefits to this type of online video format
Experience a true win-win for the user and the marketer. When the ad is effective, the user is interested in the ad and the marketer is only paying when he/she catches a users attention. This online video ad type is a great way to showcase a company’s product demonstration, message, event, and other type of branding opportunities. These videos aren’t limited to 30 seconds so in some cases, marketers have experimented with longer video ads to further drive value to the brand or product knowledge/awareness. In-stream video ads also add to the view count statistics on its Youtube page.
Bumper Ad
Bumper ads are a six second video that are displayed before or during other online videos. This options is played with full sound and is not a skippable video. Furthermore this ad option is a great tool for consumer reach and ad frequency. Marketers use bumper ads to reach the same users multiple times or to retarget previous website visitors or previous in-stream ad viewers. Marketers have multiple ways of paying for bumper ads, CPM & CPV (both will be explained later in this article).
Benefits to this type of online video format
These ads are short and to the point. This makes it easier for a marketer to ensure that the targeted user is digesting the message and not losing their attention span. The most common objective with this type of an ad is to reach a higher ad frequency. These act as great reminders to current customers or elevate brand/product consideration to potential in-market audiences.
Video Discovery Ad
Video discovery ads appear on Youtube and are meant to direct a user to the advertised video. They appear as suggested videos for targeted users on desktop and mobile devices. These ads help interested users find your content and explore your product/brand/service.
Benefits to this type of online video format
Users trust the platforms that they use like Youtube. By having your video ad appear as a suggested video, typically a marketers since an increase in the CTR for those videos and help users, new and old, digest your content.
Online Video Bidding Options
Cost Per View (CPV)
This bidding strategy is the most effective way to ensure that your online video ads are performing. Marketers only pay for the ad when a consumer has viewed at least 30 seconds of the ad or the entire video if the online video is less than 30 seconds.
Example:
Cost Per View (CPV)=$0.02 Impressions (Imp)= 1,200,000 View Rate (VR)= 22% Views (V)= 264,000
(Imp x VR) = V → V x CPV = Marketing Budget
(264,000 x 22%) = 264,000 → 264,000 x $0.02 = $5,280
Cost Per Thousand (CPM)
This bidding strategy is most effective when a marketer is trying to achieve a high impression count and ad frequency count. A marketer gets charged a rate for every 1,000 impressions of their ad, regardless if the user consumed the ad or not.
Example:
Cost Per Thousand (CPM)= $3.25 Marketing Budget (MB)= $5,280 Impressions (Imp)= 1,624,615
(MB / CPM) x 1,000 = Impressions
($3,500 / $3.25) x 1,000 = 1,624,615
