Advertisements on Youtube
There are various types of advertisements that run on Youtube that have their own unique allocation of ad slots and timestamps that cater to each and every viewer.
“Trueview in-stream ads” are best known as the advertisements that play before the youtube video plays. In most cases, the ads are skippable after 5 seconds of mandatory viewing which essentially gives a 5-second window to catch the interest of the viewer. However, recent developments in youtube have created additional ad slots for these types of trueview in-stream ads by implementing unskippable ads that take up to 15 seconds of mandatory viewing time. These ad slots are much more coveted due to their unskippable nature and increased screentime. Not only have they created ad slots with longer screen time, but they also added the existence of multiple ads before a youtube video. This in turn allows for more people to compete for more coveted spots of advertisement.
“Bumper ads” are used less often, but are still employed to a meaningful extent to advertise products to youtube users. They are also ads around 5-6 seconds of unskippable screen time, but their main purpose is to promote brand awareness and accessibility. After all, the most important thing an advertisement is meant to do is make its brand memorable. Using witty body language and cinematic strategizing bumper ads help indirectly leave a lasting impression. Due to their shortness and briefness of potential ad screentime, they are not as coveted as in-stream ads.
According to a statistical analysis initiated by Google on their youtube platform, people who watch the entire ad video on youtube are 23 times more likely to visit or subscribe to the brand being advertised. If all ads were to be viewed from start to finish, the valuation of youtube videos is 23 times more than that of other potential ads slots. This is a meaningful statistic that gives advertisers an incentive to search and compete in a second-price auction for the best ad slot possible on the platform.
Youtube requires all of its advertisers to submit an ad budget, a target ad acquisition cost and bid the MAXIMUM CPV, or cost per view they are willing to pay. This means that the slot owners have access to all of the valuations of every advertiser and will allocate each advertiser based on their bid to their corresponding best slot that would maximize revenue: precisely reflecting what we learned in class to be a reality when it comes to the allocation of advertisements on the world wide web.
The Link explains the multiple types of ads available for bidding on youtube as well as a step-by-step process of how to add your own ad to youtube.
Link: https://disruptiveadvertising.com/video-advertising/youtube-advertising/