Every social network has its pros and cons to working with them. Facebook can give you audiences at scale. LinkedIn can target specific occupations. Twitter, Instagram, Vine, they all achieve targeting goals for marketers and advertisers. Why then, leave YouTube out? YouTube is an ecosystem with not just demographics, but with rich behavioral pattern details ripe for hyper-targeting.
Video is the future of social media, and it is important for brands to understand how to advertise against it. How are people currently buying ads on YouTube? The following are typical ways that brands and agencies buy advertisements on YouTube.
Paid Media Via MCNs
Multi-Channel Networks formed to aggregate channels to advertise against as a way to generate revenue at scale to compensate for the support services that the MCNs provide to channels. MCNs sell ad units against the channels signed to their networks. Some networks are vertical specific, like StyleHaul and Tastemade, so advertisers would be paying for their ads to run against beauty and lifestyle, or food, respectively. Larger MCNs like Maker and Fullscreen have sub-networks that bundle together channels based on interest groups and can sell based on audiences of their channels.
Paid Media Via Google AdWords
Brands can buy ads against keywords. Google will figure out where to serve the ads and how to optimize them. Ads through Google are bought at Auction or on Reserve. Reserve ads are premium spaces where as ads at auction are a good way to maximize impressions at cost and scale. When you buy ads on auction, buyers are limited by ad format. Auction limits video ads to 15 second non-skippable and TrueView. 30 second ads are only sold on reserve. When dealing with ads at this level there are also a variety of differentiations and options adjacent to this like Ad Exchanges and DSPs.
Paid Media Via YouTube’s Google Preferred
This is the ad inventory from the top performers on YouTube in each of YouTube’s designated categories. Their ad inventory is available for pre-sale because of the proven performance of the channels. These are the top 1% and 5% of channels in groupings by type. These channels are only accessable to buyers with upfront agremeents.
Paid Media via a Channel Directly
In this case, the transactions get a bit more complicated for the channel owners because they end up writing a check to Google, instead of Google sending a check to them. YouTube will bill the channel for 45% of the ad revenue. In order to be able to sell ads on your channel this way, there are high subscriber and view minimums, thus making this option available to only a handful of channels and major media companies.
Paid Media via ZEFR
ZEFR sells ads against inventory that is contextually relevant to brands on a video level. AdWords was built for google search. Targeting through ZEFR compliments AdWords and Google Preferred because the technology was built for video and designed to differentiate content by context. ZEFR advertises against the most efficient videos for interests and then extrapolates for related relevant things, while making sure that ads don’t run against unsafe or irrelevant videos. ZEFR targeting, because it is on the video level, does not waste views. Every video aligns with a brand’s campaign goals, interests, or the interests of their desired audiences.
Paid Media via Digital Agencies
Clients will hire agencies and the agencies are grouped by holding companies. Most major brands work with digital agencies. Agencies place media buys on behalf of the brand. Agencies typically have fees on top of the price of ad inventory by added value on the price of the media, or by a flat fee on top of the purchase. Outside vendors typically, but not always, use one or more of the above methods. They add the ability to optimize ad spends and navigate the complex world of advertising on YouTube. Digital agencies use all of the other methods to optimize advertising for clients.
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