Youtube Ads vs Facebook Ads: Where does your video convert?

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Youtube Ads vs Facebook Ads: Where does your video convert?

It’s no surprise how powerful video ads are in this day and age. Not only does it perform well in generating leads or sales, but also brand awareness. A study showed that 95% of the message in a video ad is retained by consumers worldwide.

But today we’re not going to explain the “why” video ad is a good idea. Instead, our topic is about “where” you should leverage them to meet your business goals. Digital marketers know all too well that placement is vital when achieving objectives. Even in just Facebook alone, there are literally dozens of options for where their specific campaigns flourish.

But before we pit Youtube and Facebook against each other, let’s find out the metrics that make them good options for video ad placement.

Youtube Video Ad & Its Key Statistics

Youtube is the world’s 2nd largest search platform on the internet, only slacking behind Google (but cruising in front of other large search engines like Bing). It’s no surprise that 85% of digital marketers have already taken advantage of this to sell products and services.

When playing a video on Youtube, you’ll notice that there are a variety of ads that pop up. There are those that can be skipped and those that are mandatory to be watched for 6 seconds. As you might know, these are different kinds of ads that can be utilised depending on your strategy.

1. True View Ads

The generic type of ad on Youtube. These videos can either be in the Youtube video itself or at the search bar, targeting those who searched for a keyword that related to your brand.

The goal of TrueView Ads is less to generate immediate sales or leads, but to promote brand awareness. Marketers are only required to pay once a viewer has watched the ad for at least 30 seconds.

2. Pre-roll Ads

Pre-roll Ads are generally more difficult to pull off since this is the type that cannot be skipped. Although this one can appear anywhere in the YouTube video, the most important aspect would be happening in the middle of the video. Meaning, people who see this type of ad can perceive it as something annoying.

It’s important that when implementing this, always make it eye-catching and CTA obvious. You only have 15-20 seconds to impress the viewers, else they’ll just ignore it entirely.

Despite this, Pre-roll ads are still profitable. YouTube specifically prices this per click, meaning that this ad is good for those who want to generate immediate sales and leads.

3. Bumpers

The shortest of all Youtube ads. With an average of just 6 seconds, you’ll have to make every one of them count. In this short amount of time, it’s best to showcase both the brand the benefits your product or service provides as endearing as possible.

The campaign objective for this type is also conversion-based. An experienced digital marketer who’s already A/B tested multiple bumpers can generate positive ROAS with this method.

Key Statistics:

  1. 2 Billion people watch Youtube videos every month
  2. 33% — Of these are Baby Boomers who go to Youtube to learn more about a product or service
  3. 12% — Is the average conversion rate of successful Youtube ads
  4. 16% — Is the conversion rate that top Youtube advertisers make
  5. 75% —  Of online shoppers say that they used Google or Youtube to help with their product or service purchase
  6. 84% — is how much more likely Youtube ads will get viewer’s attention than TV ads (Think with Google)

Facebook Video Ad & Its Key Statistics

Facebook ads are the bread and butter of any digital marketer. It’s also one of (if not, the most), popular gateway for business owners to start promoting their brand in the online world. With over 200 million small businesses using its tools and campaign manager, it’s no surprise that their reputation is at a remarkable high.

Just like Youtube ads, Facebook also has tons of ways to promote video ads. However, because Facebook also owns Instagram, it can be said that there will be much more options for you to choose from.

  1. Facebook News Feed
  2. Facebook Video Feed
  3. Facebook/Instagram/Messenger Stories
  4. Instagram Feed
  5. Instagram Explore

Key Statistics:

  1. 2.8 billion people use Facebook every month
  2. 86% — of web consumers with 100k monthly incomes use Facebook (Sprout Social)
  3. 3.9% — is the average clickthrough rate of Facebook, the highest on any paid advertising platform
  4. 9% — Is the average conversion rate on Facebook

The Showdown: Facebook Video Ads vs. Youtube Ads

Now that we know the details and statistics of each platform, let’s determine where your video ads will perform the best.

1. Cost

This battle is a bit tricky. Because even though Youtube ads have a lower cost-per-click ($0.49) than Facebook ads ($1.72), Facebook has a better clickthrough rate clocking at 0.89% compared to Youtube’s 0.65%.

But overall, if you’re on a low budget, the better option for testing video ads is YouTube. Its pricing is tailored to lean more towards the marketer’s side rather than the platform.

YouTube: 1

Facebook: 0

2. Visibility

To clarify, this does not indicate the total watch time in each platform, it’s the recognition of information in each video posted. Now, why does this matter? Because Facebook has a feature called “auto-play”. Auto-play can be a convenience and a nuisance, depending on the user. And when totaled, can be quite deceiving when tabulated in a graph.

A study on Facebook and YouTube in 2014 showed that the latter was getting 11 billion videos viewed consistently while Facebook jumped from 4 billion to 12 billion because of its auto-play feature.

Despite not being a conscious effort by the viewer, it’s still undeniable that if your video is eye-catching and powerful enough, can leverage Facebook’s feature to your advantage for more brand awareness and conversions.

YouTube: 1

Facebook: 1

3. Engagement / Action-based results

It seems pretty obvious that people who visit Youtube are there to watch videos. And majority of the time, that’s their only intent. With this reasoning, it’s less likely more consumers to click on an ad because they were basically in the middle of watching something. Facebook on the other hand is full of interactive content. Whether it’s sharing, commenting, trying out a brand’s AR experience post or checking Facebook groups, it’s undeniable that users are better warmed up to click on a link compared to its rival, hence a higher clickthrough rate as mentioned a while ago.

Youtube: 1

Facebook: 2

4. Competition

Statistics show us that 93& of digital marketers use Facebook as their choice of paid advertising. Meanwhile, YouTube stands at only 55%. There are many factors that affect these numbers but in essence, your business will compete with significantly more competitors in Facebook.

This is the consequence of over-popularisation due to the massive success of Facebook’s Business Manager in the recent years. If your product or service falls into a heavily saturated niche, then it would be beneficial to use Youtube ads as a starting point.

Youtube: 2

Facebook: 2

5. Performance & Difficulty level

We mentioned a while ago that the average conversion rate of Facebook and Youtube is 9% and 12% respectively. However, we must take into consideration the word “successful” when talking about Youtube’s performance. Yes, it may have a higher percentage, but its difficulty level in comparison to Facebook’s is much, much higher.

This is because YouTube ads have a lot of inconveniences for the average consumer. And when asked, people are more likely to be annoyed with YouTube ads than Facebook ads. Facebook’s clever integration of their sponsored posts make it look natural, meanwhile, YouTube has to “cut corners” and place it within the actual content the audience is trying to digest, making it extremely intrusive.

So, for these reasons, we’ll have to give them a tie. YouTube performs better in terms of conversions but is hindered by its steep learning curve to fully utilise. To make the most out of YouTube ads, it’s a good choice to partner with a professional YouTube Advertising Agency to get the best of both worlds.

YouTube: 3

Facebook: 3

Who Wins?

Short answer: 

It’s a tie! Both are great for advertising videos to promote brand awareness, products and services.

Long answer:

It depends on multiple factors such as your brand’s credibility, budget, and digital expertise. 

YouTube has a higher conversion rate than Facebook, especially when done well. In addition to that, it costs less to promote on this platform and there’s much less competition, meaning that you’re likely to dominate your niche when it comes to paid advertising.

Although, Facebook has a much easier learning phase. It’s definitely a better option for those who are just starting with digital advertising all while being able to optimise ads through laser-focused targeting.

Some of our recent results.

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