YouTube: The Hidden Secret to Getting Low Cost Leads

Mike Arce

Jul 08, 20153 min read
YouTube: The Hidden Secret to Getting Low Cost Leads

YouTube is an awesome marketing tool that a lot of business owners haven’t explored. What really makes this avenue amazing is how many leads and overall exposure you can generate at such a low cost. So many people just aren’t aware of YouTube advertising... yet.

That being said, I’m here to cover how you can gain more leads at an affordable price with YouTube. But before we dive into the marketing aspect, it’s important to note that there’s one expense that comes up even before the advertising begins: the creation of the video.

Whether you create a DIY video with your own camera and lighting or you invest in a third party to get it done, just make sure it’s something you’re proud of and want customers to see. During the creation, make your video with YouTube in mind.

Create a Quality YouTube Video

These are a few of the principles I recommended following:

  1. Put your business’ info out there within the first 5 seconds of the video.
  2. Make your video at least 31 seconds or longer.
  3. Create a good follow up video that viewers can play afterwards.

Here’s Why These Principles Matter:

Just like any other advertising platform, you can get really granular with YouTube advertising. You can target your audience based on age, gender, location, interests, behaviors and more.

So let’s say Johnny, someone in your targeted audience, wants to watch a video of Michael Jordan highlights. Before his video actually plays, Johnny will see a YouTube ad with a 5 second countdown. After those 5 seconds, he’ll have the option to “skip” or continue watching.

Hit skip, continue watching

Here is where it’s so important to put all of your business’ information out there within the first 5 seconds of your video. Show your logo, say your company name, and include what your business does and where you do it. So even if someone eventually skips your ad, they still get familiarized with your company in that 5 second window.

Now let’s really get into the numbers and why YouTube advertising is so amazing.

YouTube Advertising: By the Numbers

94% of YouTube ads get skipped. At first glance, that may sound terrible. But it’s not. Remember you have your targeted audience’s attention for at least the first 5 seconds.

Matrix MemeSo let’s say that 10,000 people see your ad. By statistics, 9,400 are going to hit skip. While this doesn’t sound effective, it actually is. All those people watched at least 5 seconds, they were targeted, and it didn’t cost you one cent.

Also note that a “skip” is whenever the viewer skips your ad anywhere between 0-30 seconds. So if they skip at 28 seconds, it still doesn’t cost you a penny. That’s why we suggest that your video be at least 31 seconds or longer; it has the highest likelihood of not costing you money.

Essentially, you only pay for people who watch at least 30 seconds or more of your video, or people who click your ad. That’s called a TrueView.

So now let’s address those other 600 people who account for the TrueViews. Our clients pay on average 10 cents per TrueView. If all 600 people watch more than 30 seconds or click through to your landing page, it would cost a total of $60.

And if 600 people watch your whole video, you can assume that at an 8-12% click through rate, 50-75 will click through to your landing page… and for only $60. That’s a super affordable cost-per-click.

Your Landing Page Video

When viewers get to your landing page, it’s also a good idea to have a longer video that acts as an extension of the ad. This is where the follow up video mentioned earlier comes in. It should provide more in-depth details about the ad’s original topic. You should also have an awesome call-to-action, any information that might be useful to the visitor, and so on.

On average, about 15% of the people who arrive at these landing pages convert. So if you get 60 people for $60, it costs you $1 per visit. And if 15% of them convert, you get 9 leads at about $7 a lead.

Depending on what you do, this can be a lot. For barbershops who offer $10-12 cuts, YouTube advertising may not be as valuable. Regardless, it still builds your book of business and shows off your barber shop in a very cool way.

But if you’re a plastic surgeon or mechanic with a higher ticket amount and repeat business, YouTube advertising is a great way to get your company name out there. Remember that the majority will be free exposure to your targeted audience. And when it comes to your TrueViews, the cost-per-click is great which means the cost-per-conversion is also extremely good. This is a must for Internet marketing!

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Mike Arce is the founder of Loud Rumor, an internet marketing company for small businesses. Loud Rumor focuses on new customer generation through services such as Local SEO, AdWords management, social media marketing, and YouTube advertising. Mike Arce has a passion for helping small businesses grow, which is where Loud Rumor comes in. You can find him on Twitter, LinkedIn, and Facebook.