How to make digital ads more appealing and earn more money on YouTube ad campaigns
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The video advertising industry has a long way to go to become truly digital, according to an analyst who estimates there are currently only about 200 digital ad firms working for every 1,000 YouTube creators.
“The reality is that the advertising landscape in the US is very different from the advertising world in Europe, and we are not seeing the full value of the digital advertising model,” said Alex Schulman, director of the AdPulse research group.
“So, if you want to grow revenue and grow revenue per video, the biggest question for digital ad companies is, ‘How do we create more attractive and compelling ads?'”
Schulman said that while YouTube ad networks have been investing in creating compelling video ads, the ads still don’t have the level of digital appeal that they once did.
“If you are not creating compelling ads, you are missing the mark,” he said.
“And when you are creating compelling advertisements, you have to have a strategy,” he added.
“And if you have a good strategy, you should be able to grow ad revenue and make money on ads.”
For example, a good ad campaign may be one that includes videos of people performing an activity, like driving or shopping, that are clearly visible and show the product or service.
“It might be an ad for a fitness band that will get a lot of clicks,” Schulmen said.
“But the more people you have that are doing something that is clear and clearly visible, then the more likely that you will get more clicks.”
The ad industry is still working to make sure video ads on YouTube are compelling and easy to find, but it appears that the industry is making some progress.
According to data from ad tracking company admatch, there were about 3.7 million videos that had over 30,000 views or views per minute (ppm) in 2015.
The median video views per ppm for the year was 3,000.
The average ppm is a metric that reflects the percentage of people who view a video.
Advertisers that are targeting people at a specific time of day tend to view the video at a lower ppm, and videos that have more video views will be viewed more frequently, according the research.
“We are definitely seeing a bit of a shift,” Scholman said.
“[Advertiser] companies are looking at what their video ad strategy is and what are the best times to target people and the best ways to make that video a bit more enticing.”
Schulmen noted that YouTube has been slowly moving toward an “ad revenue model” where publishers get a percentage of revenue from videos posted in the last 24 hours.
However, he said that “there is a lot more work to be done” in order for publishers to realize that potential revenue stream.
Schulmans findings echo other recent research that has found that YouTube ad revenue is not a viable revenue source for video publishers.
Last year, for example, research firm Zacks Analytics estimated that video ad revenue on YouTube was $3.8 billion, and that ad-supported ad revenue was only $3 million.
“Ad revenue has a lot less of a place on YouTube now than it once was, and it is really difficult to monetize video on YouTube because it is all video,” Schuleman said, adding that the “ad model” is “not the future.”
According to AdPilot, the average cost per video ad on YouTube has fallen to about $3 per 10,000 impressions per day, down from about $15 per 10 the year before.
And according to AdSense, advertisers are making less money from video ads as a percentage a year after the first quarter of 2018.
The video advertising industry has a long way to go to become truly digital, according to an analyst who estimates…