An Introduction to YouTube TV Advertising

Evolution of TV Consumption

TV viewership has dramatically changed. With declining linear TV audiences, and an industry shifting its focus towards Over-The-Top (OTT) and Connected TV (CTV) streaming services, advertisers are reallocating budgets to dive into this growing platform. Not only are more people using CTV, but time spent with this medium is also increasing. There have never been more options for what to watch and how to watch it.

Non-pay TV viewers will soon outnumber pay TV viewers. By 2024, 123.8m people will view pay TV, versus 143.6m who will have cut the cord, instead streaming content and watching live TV on distributors like Hulu + Live TV and YouTube TV. These shifts in viewership are opening up different ways for advertisers to target and reach TV watchers.

In this blog, we’ll cover everything advertisers need to know about YouTube TV (if you’re a viewer looking for more info on YouTube TV, go here) and how to leverage YouTube TV ads through Digital Remedy as part of your OTT mix.

What Is YouTube TV?

We’ve all heard of YouTube, but what is YouTube TV? First launched in April 2017, YouTube TV is a subscription streaming service—known to advertisers as a vMPVD (Virtual Multi-Platform Video Distributor)—that provides an alternative to traditional cable. Available nationwide, YouTube TV lets subscribers watch live TV from 100+ broadcast, cable, and regional sports networks (in English and Spanish), in addition to video-on-demand (VOD) shows, YouTube Originals, and trending YouTube videos. Subscribers can upgrade their viewing experience with premium networks, sports, Spanish, and 4K plus add-ons for an additional monthly cost. 

As of July 2022, YouTube TV has more than 5m accounts — making it the U.S.’s biggest internet-based pay TV service. In addition, it’s the fifth-biggest U.S. pay-TV service (after Comcast Xfinity, Charter Spectrum, DirecTV, and Dish). 

YouTube TV service currently does not have an ad-free version, so all subscribers see ads. YouTube TV advertising is a form of OTT (over-the-top) advertising. OTT advertising is delivered directly to viewers over the internet through streaming video services or devices. With YouTube TV, advertisers can tap into one of the most premium CTV inventories to reach target audiences at scale, with robust data, optimization, and transparent reporting.

YouTube On TV vs. YouTube TV

Not everyone who watches YouTube on their TV is a subscriber of “YouTube TV.” The YouTube app is already baked into or available for free download across many Smart TVs and streaming devices. The YouTube app enables viewers to watch all their favorite content on the largest screen in their house at no cost, while “YouTube TV” requires a paid subscription.

Ad Formats

YouTube TV currently supports two types of ads:

• Non-skippable in-stream ads – As the name describes, these are ads that consumers cannot skip through and must be watched in their entirety before viewers can watch the main video. These ads can be added before, after, or during the main video.
• Bumper Ads – Bumper ads are shorter—also non-skippable—videos that appear before, during, or after a YouTube video. These ads are better for brands looking to reach viewers broadly with a short, memorable message.

Audience Targeting

This platform’s most significant advantage over cable TV is its Artificial Intelligence, which recommends content depending on the user’s preferences. Through advanced targeting, users can easily be targeted by:

• Age
• Gender
• Devices (e.g., smartphones, Android, tablets, and Smart TVs)
• Location
• Interests

Topic targeting lets brands reach people interested in content related to their products and services, whether travel, food, music, or something else. Topic targeting applies to non-skippable in-stream ads, and bumper ads served on YouTube TV.

Ad Placements

With YouTube TV, ads can show up in a few different places:

• Live TV
• Video-on-demand (VOD) 
• YouTube videos 

This allows ads to be placed in relevant slots for target consumers as they already engage with the YouTube environment.

The Benefits

YouTube TV has become a valuable channel for advertisers looking to connect with the right audience at the right time and boost awareness among new consumers. YouTube TV advertising: 

• Increase reach beyond linear: Layer on data and customize affinity to deliver more personalized ads and reach audiences you may have lost or couldn’t afford to reach through linear TV advertising alone
• Access premium inventory: Access to over 100+ broadcasters ranging from ABC and FOX to CNN, all the premium publishers, and cable and regional sports networks
• Enhanced efficiency: Ability to leverage your TV audience’s profile, assuring improved and most effective ad placement
• Full transparency: Granular performance reporting shows where ads are running and which ads are performing well,—so you can adjust strategies accordingly—providing data-driven insights to drive future media decisions

For more information, check out our Why YouTube TV video.

Get Started

With YouTube TV, Digital Remedy offers advertisers and agencies of all sizes the ability to play within the walled garden and get the most out of their streaming campaigns. To learn how to get started, speak to a team member today.