4 Reasons Why You NEED to Use YouTube Ads to Grow Your Business

A wise man once said, marketing is no longer about the stuff you make, but about the stories you tell. And what better way to tell a story than a YouTube video ad? “Every day, people watch hundreds of millions of hours of YouTube videos and generate billions of views”.

Now, you may be wondering what this means for a business owner like you. Well… the answer is simple. Opportunities. This represents a lot of potential customers, both at home and on the go. Simply put, if you aren’t capitalizing on YouTube ads, you’re missing out.

Now… lets check out the top 4 reasons you need to use YouTube ads.

1. Capitalize on Changing Consumer Behavior

Remember when visiting a local video rental store was part of your weekend routine? Those days are long gone, thanks to rapid advancements in technology. With platforms like YouTube offering on-demand content, there’s no need to rely on traditional TV schedules or physical media.

Consumer behavior has shifted dramatically toward digital video. Between 2018 and 2023, the average daily time spent watching digital video increased by 50%, with mobile video consumption seeing exponential growth. Today, audiences watch over 1 billion hours of video content daily on YouTube, making it a pivotal platform for businesses to engage their customers.

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https://www.youtube.com/yt/press/en-GB/statistics.html
eMarketer, Digital Video and TV Viewer Metrics in Canada, 2012- 2017, Year comparison 2012-2016

For two years in a row, we’ve seen subscribers fall for all major specialty TV channels, while they have increased for YouTube.

In the past, people would tune in to their favourite TV show at a specific time of day. Today, they have the option to watch what they want, when they want, and on whichever screen they want.

Consumer Trends:

1 in 2 people say they watch YouTube on their TV

65% of people say they’ve watched videos about food or drink ideas, recipes, or how to’s

1 in 3 don’t watch comedy late night shows live on TV but instead watch clips of these shows on YouTube

77% of people interested in music turn to YouTube- that’s 2.3X higher than those who watch on TV

2.YouTube Has a Massive Global Reach

YouTube’s global reach is unparalleled. With over 2.7 billion active users, it’s one of the most visited platforms in the world. The platform’s mobile viewership accounts for more than 50% of its total watch time, making it a dominant force across all demographics.

In the U.S., YouTube reaches more 18-34 and 18-49-year-olds than any cable network, providing businesses with an opportunity to connect with a broad and highly engaged audience.

Statistics from YouTube.

3.YouTube Targeting Allows You to Advertise to Consumers That Matter to You

YouTube’s targeting capabilities enable businesses to connect with their ideal customers at the right moments. From demographics like age and gender to behaviors such as purchase intent or past interactions, the platform allows advertisers to fine-tune their campaigns.

Content targeting adds another layer of precision, letting businesses select specific channels, topics, or even keywords where their ads appear. For example, targeting “fitness” videos ensures ads are shown to an audience actively engaged in related content.

Some commonly used YouTube targeting methods for your video ads are:

1. Audience Targeting      

This method lets you define who you want to reach. You can target by:

• Age
• Gender
• Parental status
• People interested in certain topics
• People who already have a strong interest in relevant topics
• People who are tailored to your brand
• People who are researching products and actively considering buying a service or product like those you offer
• Past interaction with your videos, ads, or YouTube Channel
• Household Income

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Google/Ipsos, Human Stories Canada, June 2016

Check out YouTube’s audience and the average household income for each age group!

2. Content Targeting      

  This method lets you define where you want your ads to show. It includes:

• Placements: Target unique YouTube channels, YouTube videos, apps, websites, or placements within websites.
• Topics: You can reach a broad range of videos, channels, and websites related to the topics you select. For example, if you target the “Makeup” topic, then your ad will show on YouTube to people watching videos about makeup.
• Keywords: You can target your ads based on words or phrases related to a YouTube video, YouTube channel, or type of website that your audience is interested in.

4.YouTube Ads Are Affordable

You don’t need a massive budget to advertise effectively on YouTube. You can set a daily spend limit and only pay when someone engages with your ad, such as watching it for more than 30 seconds. This pay-per-engagement model ensures your marketing dollars are used efficiently, making YouTube ads accessible to businesses of all sizes.

Conclusion

Now, we aren’t here to tell you that TV advertisements are dead, blah blah blah. BUT- we are here to tell you that research shows YouTube ads are where you should be putting in some investment.

TV + YOUTUBE = BETTER TOGETHER

  1. Better Reach and Frequency    

   1 in 3 YouTube users are light TV views who are increasingly difficult to reach via TV

  2. Better Engagement  

  The same ads were 39% more engaging when shown on YouTube

  3. Better Results   

  When TV and YouTube deliver an equal impression share, we see a 29pt lift in ad recall

To start advertising your business, product, or services on YouTube, get in touch with Mrkt360 today. 

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Google TNS YouTube Audience Profiling Study, Canada, June 2016, Light defined as 8 hours a week
Google/Explorer Group, “The Biometrics of Branding”
Google Ipsos TrueView and TV Lab Test, Canada, 2016