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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.

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