It’s no secret that the release of iOS 14.5 and its dedication to user privacy — specifically, its AppTracking Transparency Framework — shook the foundation of Facebook ads, which have long depended on intense data tracking in order to deliver the right ads to the right audience.
This change meant that Facebook could no longer track users across apps and websites for the purposes of ad targeting, and as a result, many advertisers saw their campaigns lose effectiveness overnight.
Facebook ads are no longer the powerhouse they once were — but that doesn’t mean there’s no hope for digital advertisers. In fact, there’s one platform that is now poised to take over as the go-to place for digital advertising: YouTube.
Here are five reasons why YouTube ads are the new Facebook ads.
1. Hyper-Relevant Targeting
One of the things that made Facebook ads so powerful was their ability to target users very specifically. Advertisers could target people based on interests, demographics, and behaviors.
But with iOS 14.5, getting targeting right is much more difficult. Facebook can no longer track users across apps and websites, which means that advertisers can no longer target their ads as effectively.
Enter YouTube. YouTube’s targeting options are just as good — if not better — than Facebook’s. Advertisers can target people based on demographics, interests, behaviors, and most importantly, based on specific searches.
This makes YouTube ads hyper-relevant.
Plus, you don’t have to pay for people who skip your video ads… meaning you’re only paying to get in front of an engaged audience.
In an article titled, Diversification in Marketing is Key, Ryan Dossey (the founder of Ballpoint Marketing and Call Porter), explains, “What makes YouTube advertising so lucrative compared to Facebook & Instagram is the intent behind each click. When you run an ad on YouTube, you’re getting in front of somebody that is actively searching for a solution that your offer provides… and as a business that focuses on generating high-ticket leads for our clients, nothing beats cracking YouTube advertising. Finding that winning ad and audience combination is like drinking out of a firehose.”
2. Better Conversion Rates
In a video where Neil Patel is discussing alternatives to Facebook advertising, he admits that YouTube ads are about 10% to 15% more expensive than Facebook ads: “We found that YouTube ads are a bit more expensive than Facebook ads, usually by about 10% to 15%.” But, he points out, “they also tend to convert better as well, so it makes up for the difference in cost.”
One study that compared Facebook ads and YouTube ads got the following stats for the same ad spend & video offer:
Facebook Ads
- 8,082 Views
- 125 Clicks
- 12 Trials
YouTube Ads
- 13,513 Views
- 195 Clicks
- 31 Trials
From clicks to trials, that’s a 9% conversion rate on Facebook and a 15% conversion rate on YouTube.
Why is this?
There are a few reasons for this. First, as we just discussed, YouTube ads are hyper-relevant. When people are actively searching for a solution to their problem and they see your ad, they’re much more likely to convert.
Second, YouTube ads have better placement. Facebook ads are placed in the News Feed — which is where people go to consume content, not to shop. YouTube ads, on the other hand, are placed in the search results and at the beginning of relevant videos, where people are actively looking for solutions to their problems.
This better placement leads to better conversion rates.
3. Entirely Video-Based Content
Online articles are awash with stats and studies about why video marketing is the way of the future for advertisers.
Check out some of the stats collected from Invideo…
- Studies show that 54% of consumers want to see more video content from a brand or business they support.
- 86% of businesses use video as a marketing tool — up from 63% over the last three years.
- Marketers who use video grow revenue 49% faster than non-video users.
- Video marketers get 66% more qualified leads per year.
The content on Facebook is a mix of videos, images, and text. But the content on YouTube is entirely video-based — which gives advertisers a natural and undeniable leg up.
4. In-Depth Analytics
YouTube Analytics is one of the most in-depth and user-friendly analytics tools out there.
Advertisers can track everything from video watch time to demographics and even see exactly when people dropped off during their videos. This allows advertisers to make changes and improve their campaigns over time.
Plus, YouTube integrates with Google Analytics — so if you’re already using Google Analytics to track your website traffic, you can easily see how your YouTube ads are impacting the rest of your marketing funnel.
5. An Engaged User Base
The YouTube community is an engaged and passionate one. There are over 1.9 billion monthly active users on YouTube, and people spend an average of 40 minutes per day watching YouTube videos.
And if there’s one thing that advertisers like to see in their audience… it’s engagement.
Most people go to Facebook to scroll when they’re bored. But YouTube users are there to learn something new, access a specific channel, or watch a specific video. This level of engagement is invaluable to advertisers.
The Bottom Line
Facebook ads have lost their luster.
YouTube Ads are better than Facebook ads in almost every way that matters to advertisers. They’re more relevant, they have better placement, they lead to better conversion rates, and they come with more in-depth analytics.
If you’re not already using YouTube ads to reach your target audience, now is the time to start. You might find that YouTube is the best place to spend your advertising budget.
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