YouTube is a powerhouse content platform, filled with everything from how-to tutorials to podcasts to a place for branded videos. As a result, it attracts a lot of views, with more than 211 million users in the U.S. It’s also like any other social media platform that monetizes its content through ad sales. YouTube video advertising can be a great tactic for local businesses.

Let’s look at the options for paid ads on the site and ideas to pitch to your advertisers.

Why YouTube Ads Deliver Results

Is advertising on YouTube a good investment? You may hear this question from your customers. Here are some data points to share.

  • It’s video, which is more engaging and influential, with 91% of people saying they want to see more online videos from brands. Additionally, 89% of consumers said watching a video convinced them to buy a product or service.
  • Consumers have positive sentiments toward YouTube ads. A study determined that they found the ads more relevant than linear TV spots.
  • People use YouTube for discovery. It’s the second largest search engine after Google.
  • YouTube has a massive number of views. It reports to have more than 70 billion daily views.

These proof points define the opportunity, so what ad options are available?

YouTube Video Advertising Options

YouTube ads can play before, during or after content across any device. There are both skippable and non-skippable options, as well as different lengths.

Here’s a quick breakdown of each.

Skippable video ads

  • Pre-, mid- or post-roll
  • Skippable after five seconds
  • Pricing by cost per view (CPV), cost per thousand (CPM) or cost per action (CPA)
  • Advertisers only pay if the user watches at least 30 seconds, or the full duration if shorter.

Non-skippable ads

  • Pre-, mid- or post-roll
  • Users can’t skip them.
  • CPV model
  • Length: 15-20 seconds

Bumper ads

  • Pre-, mid- or post-roll
  • Six seconds or shorter
  • Advertisers pay for every view.

What Are the Targeting Options?

YouTube video ads offer several ways to target audiences, including:

  • Behaviors and interests
  • Geography: ZIP codes, state or DMA (designated market area)
  • Household demographics

As a result, your advertisers can be very precise about whom they want to see their ads. It helps them narrow in on an audience for specific campaigns. For example, local spas may be running holiday promotions and want to target those who would give gift certificates rather than actual spa users.

5 Ideas for Local Businesses to Use YouTube

Selling video ads to your advertisers is easier when you can pitch them ideas. Here are a few to consider.

Promote Upscale Products to Defined Segments

Since you can target by household demographics and location, many advertisers can use this to spotlight their premium items. It’s a good fit for home improvement, fashion, beauty and retail. Check out this case study that leveraged pre-roll YouTube ads.

Drive Donations and Recruit Volunteers

A compelling video from a nonprofit organization about a cause can create an emotional response and action. Telling stories like this can result in a rise in donations and volunteerism. The Food Bank for the Heartland case study features this tactic.

Introduce What’s New

A visual experience can captivate viewers, and YouTube ads are an excellent option for showcasing what’s new. It’s a great concept for retail, auto and restaurants. Adding a promo code to use online or in-store can make it even more appealing.

Attract Job Seekers

So many local companies need employees, from manufacturing plants to trades to hospitality. They could use video ads to feature current employees and highlight their benefits and rates. YouTube users skew somewhat younger, so it’s a good place to reach Gen Z.

Create Anticipation for Events and Attractions

Using video ads for events and attractions would allow an advertiser to target the immediate area and surrounding ones. For example, if they know that past attendees have come from neighboring states or cities, they’ll want to include those. Video ads can capture the experience and get people excited about what’s ahead.

YouTube Video Ads Are a Good Investment for Local Advertisers

The opportunities for selling YouTube ads to your customers are great. They can work for any industry and can reach the right audience through targeting.

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