Ad Auction

An auction determines which ads are shown, the order they will appear, and how much they will cost. Like the Google Ads auction, YouTube ads are ranked based on Ad Rank, which is based on the maximum CPC bid and the ad’s quality score.

$$Ad \;Rank = CPC \;bid × \;Ad \;Quality$$

The quality score of an ad is determined by three main components, with the click-through-rate (CTR) being the most significant. CTR is a way to incorporate user feedback into the Ad Rank and measure how relevant the ad is to what the viewer is seeking. The second largest component is ad relevancy, which ensures that users are presented with relevant and useful ads. The third component is landing page quality, which evaluates the quality and relevance of the landing page that the ad leads to. (See section Google’s Ad Auction — How it Works in Chapter Search Advertising for more details on YouTube ad auctions).

Google Ads provides advertisers considerable information on the performance of their ads for optimization and testing purposes. Key metrics include views (completed views as well as quartiles), reach and frequency, engagement metrics such as CTR and clicks on other interactive elements, and average cost-per-view.

These metrics are covered in more detail in sections YouTube Analytics and YouTube Ad Testing Framework (Copy Testing) They help advertisers evaluate their video ad spend and optimize their spend on YouTube advertisements.

Previous     Next

Use the Search Bar to find content on MarketingMind.

Digital Marketing Workshop

Digital Marketing Workshop

Unlock the Power of Digital Marketing: Join us for an immersive online experience designed to empower you with the skills and knowledge needed to excel in the dynamic world of digital marketing. In just three days, you will transform into a proficient digital marketer, equipped to craft and implement successful online strategies.

Marketing Analytics Workshop

Marketing Analytics Workshop

In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.