Driving ROI with Sponsored Video on YouTube

Posted by Andy Murray, Account Director

One benefit of including YouTube in the marketing mix is the opportunity to achieve cost effective ROI by using sponsored video results. Sponsored videos are similar to paid search. Advertisers can bid on specific keywords to display their videos

Due to low bid costs and limited competition. An advertiser can set an aggressive ROI goal for sponsored videos.

The key is to decide on a spend number and stick to it. An advertiser should calculate how much they are willing to pay for a view and then stay true to that goal. Once target spend is determined, the keyword list should be continually optimized to engage the most relevant traffic for the least money.  

Additionally, because of the nature of video play, every click can be considered a conversion. People find a video and click on it if they want to see it and engage with a brand, meeting the advertiser’s goal for posting on YouTube.

Finally, it is important to consider the value of a video play on YouTube. Many times YouTube is leveraged for brand advertisers to get more mileage out of their television advertising. Media buying for television is based on the principle of cost per viewers for certain programming and times. With this in mind, it is very likely that the cost per view of a commercial on YouTube will be substantially lower.

Overall, advertisers can look to YouTube as an opportunity to set attainable ROI goals for commercials and other videos that connect consumers with a brand.

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