A blog about digital & online

YouTube = Better ROI

The age of digital marketing is upon us, and it has never been clearer than in this year’s upcoming Super Bowl. With some of the biggest companies in the world wanting to advertise in the coveted half-time spot, the race is on.

The contenders

The companies that will be advertising include Doritos; Samsung; Apple; Evian; Volkswagen; Nokia; Norton and Kia, and more big companies are joining in.

Plan of Action

All of these big companies are using YouTube to get a better ROI on all of these adverts. You are probably asking, ‘How do they do that?’ Well, here’s how: All these big companies are paying an incredible amount to advertise during the half-time ad spot, $3,000,000 per 30 seconds, in fact. That’s an incredible amount to pay, but the potential audience justifies the cost. It is estimated that roughly 111 million people watch the Super Bowl.

Now, all these companies are using YouTube to get a better ROI on all their investments. When they have a good ad, it has the ability to go viral. This is when a video gets more than 1 million views. ViralMS states that on average a viral video gets 10,424,168 views. That’s 10 million more potential customers, and it costs nothing to post your video on YouTube. That’s 10 million potential sales that cost you nothing extra!

The Numbers

ViralMS also states that companies get a better ROI, even if they choose to only advertise on YouTube, and not during the half-time ad spots. Here are a few numbers you need to consider when choosing your marketing platform.

Advertising on TV

2010 Super Bowl Viewers – 111,000,000
2010 Super Bowl 30-second Ad Cost – $3,000,000.00
2010 Super Bowl Cost Per View – $0.027
2010 Super Bowl Views Per Dollar – 37
2010 Super Bowl Cost per 1,000 Impressions (CPM) – $27.03

Advertising on YouTube

2010 Average Viewers of a Viral Video – 10,424,168
2010 Average Cost of a Viral Video – $250,000.00
2010 Viral Video Cost per View – $0.024
2010 Viral Video Views per Dollar – 41.69
2010 Cost per 1,000 Impressions (CPM) – $23.98

And another thing …

TV ads are often only seen in part and often the message of the ad is not seen or understood. This is because you can’t choose when and where you want to see an ad, and this is where digital marketing steals the crown. A person can choose when and how many times they want to see the ad.

My only conclusion

Although the potential audience for an online ad is not as large as that of TV, it offers much better returns and helps you effectively choose your target audience. And that is the primary concern of an advert, right?

(This is a post by our intern Kristian Meijer)

(Image by ZyMOS [Public domain], via Wikimedia Commons)

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