Why YouTube Preroll Ads Are Killing It!

​A good percentage of Realtors, mortgage lenders, and small business owners are using Facebook ads these days, with varying results.
 
But there’s another ad platform that has some huge inherent advantages to Facebook, is far superior for driving engagement, and costs a whole lot less: YouTube preroll ads.
 
I’ve been ringing the YouTube bell for a while now (and warning you about the declining effectiveness of Facebook ads), and YouTube’s ad options are another good reason to pay attention.
 
Before I jump into the nuts and bolts about YouTube preroll ads, a quick summary would you should consider marketing your business there.
 
About YouTube

• YouTube is actually the second largest search engine in the world – behind only its parent company, Google.
• YouTube has about 2 billion monthly active users – the same as Facebook.  
• But people don’t go to YouTube to scan, socialize, or interact; they go to YouTube ONLY to watch videos, and the average user is on the video platform to garner information or advice and stays on one piece of content much longer.

 

• Video searches account for about 80% of all web traffic in 2019!
• 78% of marketers (more than three out of every four) say that video provides a good Return on Investment.
• In 2018, an astounding 99% of businesses who are using video for marketing say that they will continue to do so!

 
Basically, think of YouTube like modern-day television, where viewers can click or type to find the channel and program they want.
 
And YOU can advertise on those channels or even specific videos – with negligible risk, low cost, and a huge upside to connect with your ideal audience.

---

​Why should you consider a YouTube preroll ad?
I’ll get right to the good stuff:

With YouTube preroll ads, you only pay for a view if the user passes the 30-second mark (or watches the entire video) or clicks on your ad! 

​So, if the viewer sees your video ad but clicks out after 29 seconds (instead of 30) or any time earlier than the end of the video, it isn’t considered a View per YouTube’s metrics…and you aren’t charged.
 
Let me say that again: You aren’t charged if the user doesn’t watch the whole thing or actively clicks. You aren’t charged a penny even if they watched 96.6% of the video (29 out of 30 seconds).
 
Standard preroll ads are videos that run for 30 seconds,
Another form of preroll ads are TrueView ads, which can be longer than 30 seconds BUT the viewer has the option to skip them after just 5 seconds.
 
But let’s assume we’re talking about standard preroll ads.
 
How YouTube defines (and charges you for) an ad View
When you set up the ad, you agree to pay per View.
 
However, how YouTube defines a View leads us to the awesomeness of pre-roll ads.
 
In fact, it’s only considered a View when the YouTube user clicks on your ad or watches to completion (the 30-second mark). 
 
Since YouTube is a Google platform, the tracking and analytics tools you have at your fingertips are superb. You can see how many people saw your ad, both partial and complete views.
 
But we don’t want to run ads just to have things almost work of course, even if we aren’t charged for the exposure. 

---

The data on YouTube preroll ads
The good news is the average video completion rate for YouTube preroll ads is 65%, or viewers reach the 30-second (completion) mark of the video almost two out of every three times.
 
In fact, only 16% click away from 30-second pre-roll ads according to industry data.
 
And the average Cost per Completion (when someone clicks or watches the whole video to the end) is only $0.10 to $0.30 
 
Yup, only a dime to three dimes! 
 
Of course, YouTube preroll ads aren’t perfect; 

• You’ll need to shoot and produce a professional-quality video ad,
• Many viewers sort of tune out when watching these pre-rolls, as if they were the coming attractions before a movie, 
• And it does take some know-how and tinkering to set up the ad’s targeting to reach your ideal demographic.

 
These YouTube ads are also best as the top of a lead funnel that offers something for free, sends them to a landing page on your website, solicits subscribers, etc. – not standing alone.
 
Targeting YouTube ads
YouTube’s preroll advertising also has huge advantages when it comes to targeting your ideal audience.
 
You can target people based on their search history (such as if they’ve watch first -time home buyer videos, mortgage education videos, videos from high-end brands or in certain geographic locations, etc.)
 
Or target people who have viewed your YouTube videos before, a form of remarketing who may bring the cost per click down to $0.10 in some cases. 
 
And you can also tighten down the targeting based on:

• Topics
• Interests
• Demographics
• Geography
• Language

 
Facebook ads vs. YouTube preroll ads
Facebook ads are cool. They’re alright. Don’t stop doing them…
 
But you definitely want to jump into YouTube with both feet, both as a place to host and share your videos (and you ARE making plenty of videos, right?!) and for YouTube’s preroll ads. 
 
Compared to the shotgun approach of Facebook ad targeting (referred to as “spray or pray” in the marketing community), you’ll spend WAY less and probably get WAY more out of preroll ads.
 
That’s especially true since Facebook has amended their rules for ads in Housing (including real estate and mortgage), Employment, and Credit, Facebook ads are more expensive, less effective, and harder to accurately target than ever before.
 
The takeaway
People who are on YouTube are ACTIVELY looking for information, advice, or help with some topic revolving around home buying, getting a home loan, fixing their credit, or about a certain neighborhood or city. 
 
People who are watching YouTube videos tend to be ready NOW. 
 
You can target them efficiently.
 
And you can reach them with your video preroll ad for less money and less risk (since you’ll only pay for a View if they watch the whole ad or click).

Let me know if you need any help!

Your friend,
Norm  :-)

---