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Benefits and Limitations of Advertising on YouTube

YouTube Statistics for Marketers

YouTube is the second most used social media platform, with around 2.5 billion monthly active users

YouTube’s Demographics

YouTube has a global audience, with users logging in every month from the Caribbean to Oceania and from Western Africa to Southeastern Asia. India wins the competition for most YouTube users in 2024, with 467 million vs the USA in second place with 246 million active YouTube users. Also in the top ten are Brazil, Indonesia, Mexico, Japan, Pakistan, Germany, Vietnam and Turkey.

YouTube’s own advertising resources report that more men than women use YouTube, though it’s important to take into account that this report does not include other genders. Regardless, they report that only 45.6% of YouTube users are female.

When it comes to age groups, YouTube is similar to other popular social media platforms in that it is most popular with users aged 25 to 34. However, unlike other platforms, YouTube does have a separate child-friendly version which also supports advertising - making it a good option for businesses targeting families. 
15% of YouTube users are between 18 and 24, whilst nearly a third of all users are aged over 45. It should be noted, however, that YouTube’s advertising data doesn’t include information about users between 13 and 17, despite the platform being available to this age group. It is estimated that around 450 million users fall into this bracket - this is 17.8% of total YouTube users!

YouTube’s Key Marketing Features

Video Ads

By far the most common and well-known YouTube advertising options are the various types of video ads users see whilst they watch content. There are a few different types to choose from, which means businesses can test what works best for certain products or styles of advert. The options include:

Skippable In-Stream Ads, which allow viewers to skip the ad after watching for a few seconds. Advertisers are only charged if the viewer watches at least 30 seconds of the ad, or interacts with the ad by clicking on it.

  • Non-Skippable In-Stream Ads, which cannot be skipped by viewers and typically last for 15-20 seconds. Advertisers are charged based on impressions (CPM - cost per mille, meaning thousand impressions) rather than views or interactions.

  • Bumper Ads, which are short, non-skippable ads that appear before the start of a YouTube video and typically last for just a few seconds. Advertisers are also charged based on impressions (CPM).

  • Video Discovery Ads, which show up as thumbnails in YouTube search results, related videos, or on the homepage. These operate on a cost-per-view (CPV) basis, charging advertisers when viewers click to watch the video content.

YouTube Targeting and Analytics

YouTube offers advanced targeting options for advertisers to reach specific audiences based on demographics, interests, behaviour, and other criteria. This precise targeting helps maximise the effectiveness of ad campaigns and improve ROI.

The platform also provides detailed analytics and insights into video performance, audience demographics, viewer engagement, and other key metrics. This data helps creators and marketers understand their audience better and optimise their content and marketing strategies accordingly, improving cost efficiency and creating more effective ad campaigns.

Live Streaming

YouTube Live enables businesses and creators to broadcast live video content to their audience in real-time. Live streaming can be used for product launches, Q&A sessions, behind-the-scenes footage, and other interactive experiences, fostering deeper connections with viewers. 

As well as regular live streams, creators can also schedule and promote premieres. Viewers can join the premiere and watch the video together, chat with the creator and other viewers, and engage in real-time excitement around the new content. This is an ideal platform for things like new product unveils, sponsorship reveals, or other exciting company announcements.

YouTube Shorts

Introduced after the immense success and popularity of TikTok, YouTube Shorts is a short-form video format designed for creating vertical videos of up to 60 seconds in length. Leveraging YouTube Shorts can help businesses tap into the growing trend of short-form video content and reach a younger audience without requiring the use of a separate app.

Limitations of Marketing on YouTube

Ad Blocking

An oversaturation of ads on the internet as a whole has led to a large amount of internet users installing ad blocking software to provide them with an ad-less experience. This, of course, can have a negative impact on the reach and effectiveness of YouTube ad campaigns. 

In late 2023, YouTube actually began to crack down on ad blockers, introducing new ad blocker detection techniques to prevent users from being able to watch videos without viewing ads. Whilst this has been effective so far, ad blocking software developers are always finding new ways around these limitations, so this is still something to keep in mind.

Ad Skipping and Fatigue

Many ads on YouTube do allow users to skip them, allowing viewers some control over which ads they view. These adverts generally allow users to skip after just a few seconds, meaning advertisers have very little time to capture their attention with a compelling video. On top of this, overexposure to ads can lead to ad fatigue among viewers, increasing the rate at which users click ‘skip ad’.

Even in unskippable ads, ad fatigue can cause viewers to tune out or become disengaged with the advertising content. This is why it’s important for advertisers to manage frequency capping and rotation to avoid overwhelming users with the same ads repeatedly. With millions of advertisers competing for ad space on YouTube, it can be challenging to stand out and capture the audience's attention amidst the competition.

Content Variability

The quality of user-generated content on YouTube can vary significantly, ranging from professionally produced videos to amateur or low-quality content. Advertisers need to carefully select placement options and monitor ad performance to ensure alignment with brand standards.

On the more extreme side of this, advertisers may even face brand safety concerns related to their ads appearing alongside inappropriate or controversial content on YouTube. While YouTube offers tools and controls to mitigate these risks, ensuring brand safety remains a challenge for advertisers.


UNBXD is a Creative Digital Agency which specialises in social media marketing using platforms such as YouTube, Facebook, TikTok, LinkedIn and Instagram to create exciting, innovative solutions for breakthrough brands. We are experts in supporting brands to outline clear objectives, develop strong communication strategies and create unique content which truly engages their audience. Come and see what we can do for you!