YouTube launches new pricing model based on reach for Trueview skippable ads

YouTube has launched a new option for advertisers to buy video ads that viewers can skip after 5 seconds. Through the company’s traditional TrueView in-stream ads, advertisers are paying for clips if users watch them to the end or they click on the ad.

Now, Google has launched TrueView for Reach which follows a cost per thousand views pricing model. That means advertisers are able to boost consumer awareness of their products whilst YouTube guarantees 95% viewability. The ads can also be skipped after 5 seconds and are recommended for shorter ads of up to 15 seconds.

According to initial beta testing, TrueView for Reach resulted in an average 20% lift in ad recall for 90% of tested campaigns. Samsung which beta tested the format to promote a smartphone launch found that the format helped the company reach 50% more people.

“TrueView for reach not only enabled us to achieve massive on-target reach, but delivered high completion rates on our 10 second video,” explained Vanessa Tsangaratos, digital marketing manager at Pepsi France. “Moreover, CPMs proved to be more competitive: we saw 30% lower CPMs on average compared to previous campaigns. This ultimately drove lower average costs on incremental reach points: -46% versus TV on specific target audiences.”

The addition follows a recent introduction of TrueView for action, a new Google video advertising format that lets brands customise their call-to-action.

As ad budgets have shifted markedly to video according to various reports, YouTube is aligning its strategy and portfolio to capture more share of the market.