×
You will be redirected back to your article in seconds

YouTube Launches Reach-Based Pricing for User-Skippable Ads

YouTube is rolling out a new way for advertisers to buy spots that users can choose to skip after 5 seconds — designed to optimize cost-effective reach.

With YouTube’s standard TrueView in-stream ads, advertisers pay only when viewers watch to the end of the spot or if they click on a card or other elements of the in-stream creative.

Now the Google-owned video giant is introducing TruView for Reach, priced on a cost per thousand views (CPM) basis. That, according to YouTube, can help marketers “raise awareness among a broad set of customers” while offering 95% viewability rates.

As with standard TrueView ads, TrueView for Reach ads can be skipped after 5 seconds; in practical terms, TrueView for Reach makes more sense for ads in the 10- or 15-second range. (Google recommend a minimum of 12 seconds for TrueView ads.)

TrueView for Reach brings “our popular in-stream format built on user choice together with the simplicity of CPM buying,” YouTube says. The approach is designed to provide a new option that fits in between standard TrueView ads and YouTube’s in-stream 6-second non-skippable “bumper” ads, first introduced two years ago.

Last year, YouTube beta-tested TrueView for Reach and found that of 84 campaigns, around 90% drove a significant lift in ad recall, with an average boost of almost 20%, according to YouTube’s internal data. Samsung Electronics America, one of the beta partners for TrueView for Reach, used the format for a new smartphone launch last year and says it was able to reach 50% more people at half the CPM with the ad unit.

YouTube will continue to offer non-skippable bumpers, available in lengths ranging from 6 to 20 seconds. A recent global study found that 60% of bumper campaigns drove a “significant lift” in brand awareness with an average increase of 10%, the video platform said.

Meanwhile, YouTube has continued to develop the TrueView portfolio. Last month, YouTube expanded the availability of TrueView for Action, a direct-response video ad format that allows marketers to insert a customized call-to-action, to clients worldwide.

More Digital

  • Facebook Logo

    Facebook Shuts Down Controversial Ovano VPN App

    Responding to a continued backlash over its data collection practices, Facebook pulled the plug on its Ovano VPN app Friday. Ovano, which promised users an added level of privacy while using public Wifi hotspots, was used by Facebook for market research purposes. Facebook removed the app from the Google Play store Friday, and the company [...]

  • Smosh

    Smosh Acquired by Rhett & Link's Mythical Entertainment

    UPDATED: Smosh, the long-running YouTube comedy brand, has been acquired by Mythical Entertainment, the company formed by Rhett & Link, hosts of comedy show “Good Mythical Morning.” As first reported by Variety last week, Mythical emerged as the leading candidate to buy Smosh, which was left stranded after parent company Defy Media shut down without [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Roku headquarters

    Roku Aims to Top $1 Billion in Revenue in 2019, Beats Holiday Quarter Earnings Expectations

    Roku wants to become a billion-dollar company in 2019, and invest more in its ongoing international expansion. The streaming-device maker told investors on Thursday that it expects to generate between $1 billion and $1.025 billion this year, and that international growth was one of its key investment areas for 2019. Roku made these announcements as [...]

  • Vice Media

    Vice Media Taps Joe Simon as Chief Technology Officer (EXCLUSIVE)

    Joe Simon has been tapped as chief technology officer at Vice Media. The newly created role will include oversight of data analytics, engineering, information technology, media operations, media technology, post production, and systems management. Prior to Vice, Simon spent three years as Encompass Digital Media’s chief operating officer. Previously he held the chief technology officer [...]

  • att_logo

    AT&T Suspends YouTube Ad Spending as Boycott Over 'Pedophilia' Videos Scandal Widens

    AT&T, one month after it thought it was safe to advertise on YouTube again, said it is pulling all advertising spending from the world’s biggest video platform. The telco joins a boycott by marketers alarmed by the discovery that a secret group of child predators has been using YouTube to make sexual comments about kids. [...]

More From Our Brands

Access exclusive content