This is something really new and exciting. eCommerce and YouTube have had a couple of missed starts. This could be something that works really well. Previously to get shopping ads onto the channel was through the content partner network which is notoriously full of crap or through smart campaigns that give no data. This solution looks like a much more scalable and robust solution for eCommece sites using video.
The issue that I have always found with video is that it is great for raising awareness and increasing brand recognition but it has never been great at creating same session sales. We have a lot of data to prove that people who have viewed our clients’ videos on youtube have gone on to buy their products, but not normally in the same session.
The issue always was customers would watch your promoted video if it was a pre roll but the reason the customer was seeing your video was because they were waiting to see the content after the pre roll. It was always going to be a major challenge to get a user to stop doing what they originally wanted to do and do what you as an advertiser wants them to do.
The new ad format is a simple but very powerful way of syncing products with content. It looks like there is enough data to promote a strong click through rate. With the right audience targeting I could really see this working.
We have seen CPMs on YouTube as low at £0.15 so with even a low click through rate and conversion rate there is a good chance for profit.
These new ad formats are set up by syncing your Youtube channel with your Google merchant center feed and then selecting the most suitable products per video. I am scheduled to set up my first one tomorrow so will get feedback on how well it works.
Lead gen ads are all the rage at the moment, Facebook is currently leading the way with this ad type but I could see the new lead gen YouTube ad format also being successful.
I have to admit I am using YouTube a lot more now than I did pre lock down.
I’m currently looking at getting an eCargo bike to take my daughter to school on without having to use the car. With these ads I could see it being entirely possible to raise awareness, and convert a customer such as myself completely within YouTube. Historically I always saw YouTube as a top of the funnel channel and you would always need to do something else to these users to get them over the line either through remarketing or something similar. This new format of ad could unlock the profitability even if it is because businesses are still struggling with their multi channel attribution.