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YouTube Introduces Reach-Based Pricing for Skippable Ads

There is a new way to advertise in town. YouTube is rolling out a new way for brands to buy advertising spots that users can choose to skip after 5 seconds. TrueView for Reach was introduced to optimize cost-effective reach across the video platform.

For the standard TrueView in-stream ad that we are used to, advertisers only pay when viewers watch to the end of the sport or click on any elements in the stream such as cards or links. The new format is called TrueView for Reach and will be priced on a cost per thousand views basis. According to YouTube, this will help marketers reach a broader set of customers while at the same time offering 95% viewability rates.

TrueView for Reach ads can be skipped after 5 seconds and therefore the recommended length for those ads is 10–15 seconds, whereas for the standard TrueView ad, Google recommended a minimum of 12 seconds. Designed to provide a middle ground between the in-stream non-skippable ads and standard TrueView ads, marketers will have more flexibility and choice when deciding on their campaigns.

Last year, YouTube beta tested the new format and found 90% of the test campaigns drove a significant increase in ad recall with an average boost of around 20%.

What beta testers had to say:

YouTube will continue to offer the standard TrueView ads as well as non-skippable ones. Especially the non-skippable ads have shown to increase brand awareness and recognition. The video giant is also continuously developing the TrueView options. Last month, YouTube expanded the availability of TrueView for Action to clients worldwide. TrueView for Action is a direct-response video ad format that allows marketers to insert a customized call-to-action.

Should you want to know more about the various advertising options on YouTube and how they can be utilised on your channel, give us a shout.

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