There is no dispute, YouTube is the king of internet videos. 300 hours of videos are uploaded to YouTube every minute, and there is an average of 3.25 billion hours of video watched every month on YouTube.

If your video needs eyeballs, YouTube is the place to find them.

YouTube also offers options for advertisers who are looking to capture a piece of these views.

When uploading videos, content creators have the option to allow ads to be placed in front of their content or not. If they allow it, if YouTube shows an advertisement before their video, they make money. The highest payed YouTuber, PewDiePie, a Dutch videogame blogger, made over $12 million in 2016.

Recently though, YouTube advertising has lost a lot of major corporations who were spending big money with the platform.

The reason is the limitations YouTube places on the business being able to control where your advertisement is seen.

When you upload a video for YouTube advertising, you can target the ad to an extent. You can choose the category of the video, and/or demographic information about who you were looking to target. You cannot target specific YouTube channels or pick and choose which videos display your ad.

To put it frankly, if someone in your target area is looking at a video in a category you selected, your ad is eligible to be shown, regardless of how offensive or distasteful the video it is shown before may be. To make matters worse, since a portion of what you have spent on the advertisement goes directly to the YouTuber, someone without this information could make the claim that your brand supports whatever is shown in the video.

At the time of writing, AT&T, Volkswagen, Johnson & Johnson, McDonalds and Verizon were among the companies who have pulled out because their videos were shown before offensive content.

YouTube is working on a way to filter out videos that may be deemed offensive, but it has been slow going. There was a recent controversy because the filter YouTube was testing excluded LGBT content as offensive.
The question remains though, should businesses continue to advertise on YouTube?

There are a lot of positives to YouTube advertising.

Like we mentioned earlier, YouTube is the place for videos. Facebook video ads are dirt cheap because they want to undercut YouTube, but one of the main issues with Facebook video ads is their default setting is to have videos muted in the feed which means the user must unmute them if they want to hear the audio in your video ad.

However, YouTube ads are relatively inexpensive as well. The average YouTube ad will cost you between .10-.30, but you can get that down to potentially between .07-.15 with the correct audience targeting. Another perk is YouTube ads are Pay Per View. Viewers have the option to skip video ads after five seconds. If your video ad is 30 seconds or longer, the video must pass the 30 second mark for it to count as a view. If it is 29 seconds or shorter, you are only charged if the entire video runs.

The bottom line is, for the average YouTube user, this issue is a non-issue. People aren’t going to switch to Vimeo, DailyMotion or any other website because advertisers are pulling out. All the content they want is on YouTube.

If you are a small or medium size business with a targeted market, I would recommend exploring the option of YouTube advertising despite the current controversy. The one thing to keep in mind with a hyper-targeted market is, regardless of which video the ad is being shown in front of, there is a set of eyes from someone in your market who specifically selected that video to watch and you now have their attention.

At Phoenix3, we can help with everything from Video Creation to YouTube Advertising. Give us a call today and see how we can guide you through the process!