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What Are YouTube Shopping Ads and Are They Any Good?

What are YouTube Shopping Ads and Are They Any Good?

YouTube is the world’s largest video-sharing website and the second largest search engine, after Google.

If that doesn’t scream sales opportunity, what does?

In this blog, we’ll dive into what YouTube Shopping ads are and why they’re worth your time and budget.

Content:

What are YouTube Shopping Ads?

Why market with YouTube Shopping Ads?

YouTube has almost 2 billion active users

More conversions at a lower cost

YouTube shopping ads are good for engagement, impression, and remarketing

Inexpensive Advertising

Specific audience targeting

Still unsure if you should run YouTube Shopping Ads?

What are YouTube Shopping Ads?

YouTube shopping ads are video ads with an element of shopping inside them. 

When a user sees the video ad on a desktop, the products will show on the right side of the video. 

Here’s a preview of YouTube Shopping Ads on desktop:

YouTube Shopping Ads on desktop

If a user is on mobile, the products will appear below the video.

Here’s a preview of YouTube Shopping Ads on mobile:

YouTube Shopping Ads on mobile(

If the user clicks on a product, they’ll be routed to your site or a check-out page with Google for product purchases.

Why market with YouTube Shopping Ads?

Here are the reasons why you should market with YouTube Shopping Ads:

1. YouTube has almost 2 billion active users

With YouTube Shopping Ads, your product videos appear on YouTube where billions of users search and watch millions of videos every day. 

As simple as that, no further explanation is needed for our first reason. 😉

YouTube

2. More conversions at a lower cost

When Google compared 941 video action campaigns with product feeds to video action campaigns without product feeds, they found that video action campaigns with product feeds are on the top. On average, advertisers that add product feeds to their Video action campaigns achieve over 60% more conversions at a lower cost.

3. YouTube shopping ads are good for engagement, impression, and remarketing

Most of the time, users will click on the product, then go to your website, but they won’t necessarily buy yet. It’s not quite often where people will click on a product and go and say, “You sold me after one video and five minutes, and I’m ready to buy.” 

But that’s not a bad thing because you’re getting traffic to your site, they see all the good stuff you have in there. 

If they’ll leave, you can easily shower them with remarketing ads.

4. Inexpensive Advertising


The best part with YouTube shopping ads is it’s inexpensive. 

On average, they’ll cost about one to two pennies per view. 

So, it’s an affordable way to capture a massive audience and you can use your existing data to build your customer list and optimize your other campaigns.

For example, we didn’t spend too much money on one of our marketing campaigns that ran from January 1st through April 30th. 

YouTube Shopping Ads

Most of our conversions will come from the smart shopping campaign by looking for those search terms. 

It doesn’t have a lot of conversions, it only has 25 sales, as opposed to the smart shopping campaigns with 923 sales.

So the YouTube shopping ads campaign isn’t directly making us any money, but it’s feeding all of the other campaigns. 

It’s useful to expand our audience and find new people. 

This is helpful especially if your company is very niche like the company we have here. 

It’s not something that you would typically search for, so we have to have some outbound element. And that’s where video shopping ads come in.

 

5. Specific audience targeting

 

YouTube shopping ads allow you to target specific audiences aside from the typical demographics and interests data segments.

You can use Customer Match or Similar Segments to target similar audiences to those who have been to your site before. 

And even people visiting a particular YouTube channel or particular video type.

YouTube Shopping Ads ad groups

For our YouTube shopping ads, as you saw in the previous photo, these are our ad groups: 

Keywords – Targeting people typing in specific keywords related to our product, and not just the product or brand name.

We had 167,000 videos that were displayed. 58,000 of them didn’t skip it, and we had a cost per view of one penny. 

That means that it only costs  $662 to get 58,000 people to watch my product introduction view on video. 

And all of those who have watched it are now in our marketing- they’re the target!

Our competitors – We’re targeting competitors so that when users go to the competitor’s YouTube channel and look at their product, they’ll see an ad about our product first.

Influencers – These are people who have followers and are doing reviews of products similar to ours.

 

Still unsure if you should run YouTube Shopping Ads?

YouTube shopping ads will allow you to enhance and expand your online marketing approach. But if you’re still unsure and want more guides to make sure you’re spending your ad budget well, you can check out our YouTube channel. You can even leave your comments and questions there and we’ll be more than happy to hop back into the comment section to help you out with your Google Ads concerns.

Author

Joan is the YouTube Growth Manager at Solutions 8. When she’s off the clock, you’ll find her chilling with her 10 fur babies, pushing her limits in CrossFit sessions, or basking in the serenity of the beach.

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