Besides auctions, YouTube also permits advertiser to buy on a reservation basis. Advertisers pay a fixed rate based on the number of impressions (CPM) or on per day (cost-per-day) basis.
Benefits of advertising on a reservation basis include improved control on execution and spend, higher visibility of ads (these ads can also run on the YouTube homepage) and wider reach.
Reservation is vital when initiatives are time bound, for instance, the launch of a new product, or a limited-time offer. Reservation is also better suited for advertising to a mass market, such as for enhancing perceptions and sustaining interest in big consumer goods brands. Auctions on the other hand, work better for more narrowly targeted marketing initiatives.
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