YouTube Lets Advertisers Buy Ads Based on Reach

YouTube has introduced a new way to buy TrueView ads with a model that is optimized for reach.

TrueView ads are bumper ads which, despite being YouTube’s shortest ad type, are also skippable.

YouTube initially launched TrueView ads with an ad-buying model based on watch time. Advertisers only had to pay for an ad if it was either viewed for at least 30 seconds, or the user clicked on the ad before 30 seconds passed.

The company’s new “TrueView for Reach” model allows advertisers to buy ads based on the total number of people that are reached, regardless of how long they watch the ads.

TrueView for Reach is said to be more advertiser-friendly because it allows ads to be purchased on a CPM basis. This should ultimately help get the ads in front of more people. On top of that, the ads can still be skipped, which helps keep YouTube users happy.

”TrueView for reach brings our popular in-stream format built on user choice together with the simplicity of CPM buying. Optimized for efficient reach, this format can help you to raise awareness among a broad set of customers — and do so within our 95% viewable and 95% audible environment.”

TrueView ads can be a minimum of 6 seconds in length, or longer if the advertiser prefers. Though it’s important to keep in mind the ads can be skipped after 5 seconds, so advertisers are encouraged to hook the viewer in the shortest amount of time.

During beta testing, YouTube says TrueView for Reach led to an average lift of nearly 20%. Testimonials from major brands, like Samsung and Pepsi, indicate that this new ad format is capable of reaching up to 50% more people at half the cost.

The key benefit offered by TrueView for Reach is the opportunity to get in front of customers more frequently. YouTube cites a global study showing 87% of bumper ad campaigns drove a significant lift in ad recall.

YouTube now has three ways to buy TrueView ads:

  • TrueView In-Stream Ads: Optimized for view time
  • TrueView for Action: Optimized for referrals
  • TrueView for Reach: Optimized for total views