When’s the last time you watched or paid attention to a commercial on your television? You probably can’t answer that. When’s the last time you watched a YouTube video during one of those commercial breaks instead? Probably last night, right?
Well that’s the point of this blog. People, especially the ones with buying power, are no longer watching television commercials; some aren’t watching broadcast and some aren’t watching TV at all.
One more question, how is that investment in TV working out for your dealership? If you can’t attribute a sale to a commercial, then you can’t answer that question.
Why Video? Why YouTube?
Why should your business be advertising on YouTube? First off, YouTube is the second largest search engine in the world. Second, lets jump into a few stats:
- YouTube sees over 1 billion active users each month
- Over 4 billion videos are viewed per day
- As of December 2014, there are 6 billion hours of video watched each month
How about some stats for mobile:
- 1 billion videos are watching on mobile devices daily
- People spend an average of 40 minutes on YouTube per session
- Users spend an average of 5 hours per month on the YouTube app
- 50% of all YouTube views come from mobile devices
How about some stats on why businesses are failing to advertise to the right targets:
- Only 9% of businesses in the US are using YouTube
- 82% of 14-17 year olds (think, first car) are using YouTube
- 72% of Millenials (think, buying power) are using YouTube
So, tell me again why you’re questioning minimal investments in YouTube advertising?
Video Advertising Shows Results
A while back, PCG did a case study with a very popular search engine whos name rhymes with “oogle” and a Honda dealership that was investing in YouTube In-stream Ads. Some of you may have seen this case study, some of you may have not, but the results are pretty easy to break down.
Over the course of a few months, the dealership saw a 12x return on investment, increased their monthly unique visits by 18%, doubled their amount of monthly trade ins and earned an incremental $50,000+ from only videos that cost $.20 to $.30 per view. Wowza!
By looking at a sample of 50% of PCG’s current client base that are making the smart investment in video advertising, our clients are seeing an average cost (over the entire length of their investment) of $.16 per view. Combining all views (regardless of budget), each client sees around 3,000 views per month and the ads are seen, on average, by 133k people every month. Keep in mind that these videos can be skipped, but similar to remarketing, users are still seeing your ad for at least five seconds and are becoming familiar with your brand. The average investment that PCG sees per video campaign is under $1000 per month. Does that not sound worth it?
More Bang for Your Buck
According to an article from Entrepreneur about the cost of TV ads it can cost anywhere from $90 to $2500 to run one 30-second commercial. Running a 30-second commercial, once a day, for $90 (minimum) per month, and the monthly budget will look something like $2,700, or about 3.x what our typical client spends monthly, to run ads all day, all night, all month.
Not sold yet? It costs between $2 million and $3 million to show one 30-60 second commercial during the Super Bowl. How many times do you (and everyone else) touch your phone during those four hours? Probably enough to justify spending under $30 a day to advertise to the thousands of people in your market using YouTube daily.
What Have We Learned Today
There are more reasons to invest in Video Advertising then there to keep investing in standard television ads. Video advertising offers better targeting, trackable results, a larger market and, most importantly, its less expensive! Advertising on television offers none of the above — so just stop.
Looking to get started? Give PCG a call and we can talk about making this smart investment in your business.