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YouTube Advertising

TrueView Advertising Case Study: Marketing ROAS 646%

May 15, 2014 by Jake Larsen

If a machine existed that took $1 and made it into $7, what would you do to get it?  That’s like asking what would you do for a Klondike Bar, pretty much anything. While the idea seems farfetched,  it is not unattainable.  This is what we have done with our client Real Truck.  For every dollar of ad spend they put into their TrueView Advertising Campaign, they are getting back $7 in sales.  Real Truck is an e-commerce company that sells truck accessories.  This case study can teach you to get a consistent ROAS using TrueView Advertising.  (Those Ads on YouTube that you can skip after 5 seconds)

The Background

RealTruck.com is one of the 20 fastest growing e-commerce sites on the web, which is attributed to their visionary leadership and talented team.  They had only dabbled in YouTube advertising before they met us and they struggled trying to get some decent results on this new advertising platform.  After spending tens of thousands of dollars in TrueView Advertising and seeing no results, they contacted us.  Five months later we turned their campaign upside down and helped produce a money making machine.

We took their “traditional” video and applied our TrueView Video Ad Formula to create a campaign that gets people off of YouTube and onto their website.  This Video Ad Formula is secret combination that, through a lot of time and a lot money, we have created to bring conversions and customers to our clients. Our numbers speak for themselves.  Check out this graph of what Real Truck has done with a little help from their friends…

TrueView ROI Chart
TrueView ROAS Chart

The Play-by-Play

Month 1: Before

The first month of the graph shows what Real Truck was doing before contacting us.  They spent around $5,000 and received no return. We found that their campaign was very unorganized, making it impossible to measure how effective the different parts of the campaign were.  They were also over-paying for views on targets that were not relevant.  Most importantly, their videos lacked certain elements that make a campaign successful and create a high click through rate.

Month 2: The Experiment

This was our first real month dealing with the campaign.  There are a lot of factors to consider in a campaign including your targets, your videos and your landing page.  In month two we had to spend money to see what targets and ad groups were draining money.  From there we filled up the holes of this sinking ship.

Month 3: Turning Heads

Trueview Case Study Stats (RT) 

We completely overhauled Real Trucks strategy.  We implemented new videos built around engagement.  Click through rates went from 1% to 3%.  The traffic tripled at a quarter of the cost from the previous month.  Since we plugged the holes in the campaign the ad spend dollars were going a lot further. This once sinking ship was burning across the Atlantic without an iceberg in sight.

Month 4: Let The Good Times Roll

In month 4 we kept the good times rolling and posted another huge gain. We did some small things like adjusting our bids to maximize efficiency but for the most part we just let the campaigns momentum continue pushing it through the month.

Month 5: Shake Your Money Maker

This is where we really shook our money maker.  We tweaked where we were spending our money by doubling the daily ad spend on all campaigns that were getting a low CPA ($75 or less) and cut spend in half on campaigns with a high CPA ($150). Our goal was to make this campaign a money making machine, and we did.

Check Out These Results

YouTube TrueView Campaign ROI Graph
YouTube TrueView Campaign ROAS Graph [Click to Enlarge]

 

This Success Can Be Duplicated In Any Industry, As Long As You Are Using The Right Methods.

We have spent millions of dollars and thousands of hours learning what works, and what doesn’t. So why not save yourself time and money

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About the Author

Filed Under: YouTube Advertising

Turn YouTube Advertising into a Cash Making Machine

April 29, 2014 by Jake Larsen

While everybody knows about YouTube advertising, not many people know how to utilize it. The real question is, how can your business benefit from YouTube Advertising? In my opinion there are two reasons why people do not advertise on YouTube.

VideoPowerSquareLogoNumber one is the obsession over the viral video.  If you can get a video to go viral, good for you.  You might as well stop reading this right now.  For those who want to make money without having to wait for a viral video (which will most likely never happen), then keep on reading.  

The second reason people do not use YouTube advertising is because they do not understand how it works, nor do they understand the opportunity that comes with it.  I want to share with you this opportunity.

 Proof That It Works

 I currently have a client that is going gangbusters using the Trueview advertising platform.  Trueview is the technical term for YouTube advertising.  So, when we talk about Trueview advertising, we are referring to  YouTube advertising. This is all done using Google Adwords.  The first thing you should know about this campaign is that it took 3 months for us to start seeing a return on ad spend.

TrueView ROI Chart

It starts out like an experiment.  You have to spend money to find out what works and what doesn’t.  However, when you find what works, it works well.

It’s not like a Viral Video that gets a huge spike in traffic and then goes away.  We’re talking about consistent guaranteed results.  Where you put in a dollar and get back a dollar fifty.

In the first two months with this client, we had an ROI of almost negative $14,000 dollars.  In month three we finally figured it out and started seeing a return on our ad spend.  In months three to five we have had an ROI of $30,000, $30,000 and $60,000 respectively.  So while for 2 months we lost money, today we have a total ROI of over $100,000 dollars solely based on the clients Trueview ad spend.  For every $1 we spend on YouTube advertising, we make $7 in revenue, so basically we’ve built a money making machine.

3 Secrets to a Good Campaign

There are certain things when you and your business need to think about when starting your campaign.

  1. In your video, have a great hook.  How many of us have gone on YouTube and when the ad comes up, we skip it after 5 seconds.  You need a hook.  You need the people who are possible customers to keep watching you. People who aren’t possible customers are gonna skip it no matter what.  How you keep the possible customers watching is what makes a great campaign.

  2. Targeting possible customers is an amazing part of TrueView advertising.  You can target any demographic you want.  It is also possible place your ads on certain YouTube channels and videos.  So go ahead and take your ads and put them on your competitors videos.  You can literally hijack traffic and customers from your competitors.

  3. The main secret that many people do not realize about the YouTube ads is that they are clickable.  If you click them, people will be brought to your site.  The most beautiful part is, you do not pay for clicks, you pay for views.  For those that are familiar with Google Adwords, you are paying buckets for a click.  With Trueview (YouTube advertising) you are begging these people to click.  As long as they click before 30 seconds, you get them onto your website, for free.  I will say that again for you… Free.

Want to Take Advantage of YouTube Ads For Yourself?

There is so much more I can teach you. Sadly, it cannot all be put in one article.  The things I wrote about are just the tip of the Iceberg.  I guess you could say they were the “tips” of the iceberg (get it?).  If you really want to do this right, check out the Video Power Lab. It’s a collection of all of our tactics and strategies presented in easy step-by-step tutorials that will help you set up successful, converting Video Ad Campaigns.

If you’d like to work together, or if you’re unsure what you need, fill out an Opportunity Brief and we can discuss how to best help you over a Free Consultation

Filed Under: YouTube Advertising

Rich vs Poor Mentality

February 7, 2014 by Jake Larsen

I’ve always been very concerned with price. Before I ever knew the benefits or value of anything, I would always ask, “How much does it cost?”. Spoiler Alert: this is not how rich people think.

Growing up we were that family that would never buy drinks at restaurants because it cost too much. My Dad would always say, “Why should I pay $1.85 for a small coke when we can get it for 75 cents at the gas station?” It drove him nuts when we ordered cheeseburgers, because the cheese cost an additional 15 cents. Can you relate?

“I was so focused on the price that I was completely missing out on the value.  This mindset keeps people from being successful.  Rich people focus on value, poor people focus on price.”

Warren Buffet on Being Rich Value vs PriceA couple of months ago I was invited to join a business coaching program that would teach me how to create, manage and grow my own business. Naturally, my first question was, “How much does it cost?” My mouth dropped when they told me how much it was. The price was high four figures. I could buy a car for that much! Why would I pay that when Google gives me access to the world’s information for free?!

This coaching program promised great results that were backed up by case studies, testimonials and current clients. A lot of these programs are sketchy and scam people out of a lot of money but I also had a good friend who was involved in this program and I trusted him. He told me he thought it would help me out but he didn’t want to push anything on me. I thought about it for a couple of days.

“I often thought, where do I want to be? What do I want to be doing?”

My Why 2014Running my own company and having it provide health, security and opportunities for my family has always been a dream of mine. I was working at a great company for four years while trying to balance and grow a side business as well. Every year I would always tell myself, “This will be the last year I work here.” But year after year I was still there.

I had my own marketing consulting company but I was never able to justify leaving my day job for it.

I wanted three things…

  1.   Quit my day job
  2.   Grow my current Marketing company
  3.   Be able to provide Food, Health, Security, Shelter and opportunities for my family.

Money wasn’t on my list of wants, but was necessary to provide for my family.  Money was not my end goal but a means to an end.

“Naturally, I asked myself, ‘How much would I be willing to pay to get these things?’  It was a no brainer. I would easily pay $xx,xxx if I could get these results.”

After just a few months into this program, I’ve accomplished almost everything I wanted to do. I quit my job and grew my own company. I can honestly say that it has provided nearly everything that my family needs plus a little bit extra.

Last month I made more money than I ever have. What would have taken me five months of work at my old job I made in a month! I’m not writing this to brag but to show you that it’s possible. The American dream is alive and well for those willing to invest in themselves.

By no means am I making the kind of money to be flying on a private jet and traveling the world but to be honest, I don’t need that kind of money.

The information I learned in this program is priceless and has allowed me to design my life how I want.  It’s the kind of information that you can’t find on Google.

This experience has changed my perspective on value and price.

“You should never make a decision based on price but on the value it provides.”

Looking back on it I would have easily paid double to get the results I have now.

Rich People Favor Value Over PriceI also find it amusing when people complain about our membership site that costs $497.  They’re so fixated on price that they lose sight of the real value.  Even if the content teaches them how to blow up their business with YouTube Ads.  When you’re so worried about paying the bills you blind yourself to bigger investments AKA opportunities.  Stop thinking small and start thinking big.

Would you pay $25,000 if it taught you how to make $50,000?

If you’re saying, “I would never spend $25,000 on anything that’s a lot of money.” Slap yourself.

“The point is not how much money you’re spending, but the value you get in return”.

This is also known as an investment; spending money now so you can make more money in the future.

You may also be saying, “I don’t even have $1,000 how can I afford $25,000?” Everyone knows at least one person with a lot of money. Use their money to finance it. You could say, if you give me $25,000, I will give you back $30,000 in a couple of months. If you’re smart about your investment, your rich friend is now richer because you just made him an extra $5,000 and you’re well on your way to becoming rich yourself.

I know there’s a lot of questions and “what if” scenarios, but you get the picture. It takes money to make money.

“Rich people make decisions based on value, not price.”

I’ve always been very concerned with price, but now I’m more concerned with the value I’m getting. When I’m faced with a purchasing decision, my first question is, “What value does this bring to me?  How will this make my life better, faster, easier, stronger?”

When was the last time you invested in yourself?
What do you want?  What would you pay to get there?

Filed Under: Entrepreneur, YouTube Advertising

TV Commercials Vs YouTube Ads Explained

December 12, 2013 by Jake Larsen

How You Can Take Advantage of the Disruption in Advertising

When I worked at Fox Entertainment in LA, I was able to talk to several executives and leaders in the television industry.  They were worried of the future because of the massive disruptions that’s been going on in advertising.  Believe it or not, advertisers are willing to pay big money for your attention.  TV stations make billions of dollars by renting out your attention to advertisers.  When you watch the Bachelor, Breaking Bad, the Walking Dead or (Insert your favorite TV show here) These TV stations sell your attention to advertisers through commercials.  So when you start fast forwarding the commercials, the TV stations no longer have your attention, thus making the advertisers’ commercials worthless.

Our attention has been transferring from TV to YouTube.  YouTube is doing to TV what TV did to the radio.  Slowly killing it.  I’m not saying that YouTube is replacing TV because there will always be a need for it.  Even radio is still around and has it’s place.  But the value that TV brings to consumers and advertisers is decreasing.

Their problem is our opportunity.

Gone are the days of forced advertising watching and seeing ads that we don’t want to see.  The tables of power have turned from the advertisers to consumers.

TrueView (YouTube) advertising allows consumers to skip an ad if they’re not interested.  It also allows advertisers the ability to hyper target their ads at an affordable price.

The billions of dollars that are being so carelessly spent on TV will inevitably flow to YouTube.

Everything that YouTube ads are, is everything TV commercials aren’t; Engaging, Targeted, Affordable, Trackable, Relevant and the Future.  The ability to hyper target an audience in Trueview is unreal.  For example, anyone can create an ad that…

  • Targets males,
  • Are 25 years old
  • Interested in technology
  • Who use an iPhone
  • Live in San Francisco

To top it off you, the advertiser only pays if the viewer watches half of the ad or 30 seconds.  Whichever comes first.  It’s performance based advertising.  No longer a shot in the dark hoping to hit something.

The analytics learned from the advertising campaign is just as amazing as the targeting ability.  Advertisers can know…

  • Number of times the Ad was played
  • Number of times the Ad was clicked
  • Where the Ad was shown
  • When the Ad was shown
  • How much of the Ad was viewed
  • If a product was purchased afterwards
  • What the Cost Per View is
  • What’s the conversion rate
  • What’s the Cost Per Conversion / Customer Acquisition

 Compare this to the TV Model.  Give us $200,000 and we estimate that your message will be shown in 500,000 households.  Whether people actually watched your Ad we don’t know.  They may be in another room when it airs.  We also don’t know if the viewers actually did anything after the commercial.  Did they drive to a store and purchased your product? Probably not.

There’s so much valuable data gained in online advertising that just isn’t possible with old media (TV, Print, etc)

For this reason, I’ve been calling YouTube the Wild West for a while now.  It’s new online real estate that is high in demand but low in supply.

The CPV (Cost Per View) in YouTube is now where the CPC (Cost Per Click) in Search was 10 years ago.  Low cost real estate that will grow by 1,000% in the next 5 years.  Since Google owns YouTube this is all done in the Adwords platform.

Think of the massive dent that Google has placed in the universe in the last ten years.  What Google will accomplish in the next ten years will make this dent look like a small scratch.

Do you agree or disagree?  Do you think YouTube will take out TV commercials? Why?  I’d love to hear your thoughts.  Especially if you disagree.  Please voice your opinion in the comments below…

Filed Under: Why Video, YouTube Advertising

How To Profit From Your Passion on YouTube | YouTube Monetization

September 21, 2013 by Jake Larsen

 

 

I was asked to speak at the Weber State Tech Expo last week and spoke about how you can profit from your Passion on YouTube.  I’ve put my slides from my workshop on Slideshare.

I spoke after Devin SuperTramp’s Keynote Speech so it was awesome to have speak as a perfect example of living a life of passion and being paid for it too.

YouTube Advertising has forever changed video advertising.  People’s eyes and ears are not where they used to be. (TV)  The billions of dollars that are spent on TV advertising will flow to Youtube, thus allowing creators to monetize their channels with ads. If you can gain people’s attention and build a viewership it allows you to live off the videos you create thanks to YouTube monetization.

Here’s My SlideDeck from the Presentation.

How To Profit From Your Passion on YouTube from Jake Larsen

Profit from Passion - Jake's Class

 

Filed Under: Why Video, YouTube Advertising

How Online Video Is Disrupting TV Advertising

September 7, 2013 by Jake Larsen

Look guys, I’ve told you before. YouTube is changing TV forever. In this next part of my interview with Austin Craig, we talk about how it is changing and what you should do to take advantage of this revolution.

For decades TV has followed very specific rules. Your favorite program is on once a week and starts either on the hour or the half hour like every other show on TV. It either runs for 22 or 45 minutes with 8 or 15 minutes of commercials. The commercials are all 30-60 seconds a piece and all of them have to comply with FCC regulations. I know in the last segment we talked about how important consistency is, but what if these TV rules don’t fit what you’re producing? What if you want a 5 minute ad? Or a 5 second ad? You just can’t do that on TV.

YouTube has completely broken down the barriers set by TV. You can try out whatever format you want. Like I always say, it’s the Wild West. The land is cheap and there’s lots of it out there, but it won’t be that way for long. When Google AdWords first came out about 10 years ago the cost per click of an ad was as cheap as around 10-15¢. Today if you are promoting an ad for Insurance you can pay up to around $80 PER CLICK!

YouTube Advertising

Google has recently come out with AdWords for video and it is at that same point that AdWords was at 10 years ago. It isn’t that uncommon to pay 10-15¢ per view on an in-stream ad with TrueView. And if you can get your audience to click through to your site or skip the ad in the first 30 seconds (or before the end of the ad, whichever comes first) it costs you nothing, nada, zip. You’re getting for free what a company would pay $4 million for in the Super Bowl.

How much of what you watch is on TV vs online? Viewers are going online more and more often for their videos. Eventually companies are going to reach a point where it actually becomes more profitable for them to spend their dollars on online video. When that happens the billions of dollars being spent on TV advertising every year are going to flood into the online space. Things will get competitive and CPV will skyrocket. So get some cheap real estate in the Wild West while you still can.

Slide007

Another benefit of online advertising that seems like a complete no brainer for me is the the amount of details you get in analytics. I know who is watching my video for how long, where they’re from, what device they’re watching it on, if they clicked my ad, etc. Then I can select my ad to only play for 18-24 year old women from Chicago if I wanted to. The best broadcast advertising can do is say “Ok there were this many TV’s on when your commercial ran. We think there might have been 2 or maybe 5 people watching. Or maybe not.” They can’t know anything for sure!

Mass broadcasting is like a megaphone in a crowd; you can give one big fat message to everybody. What web advertising allows you to do is have a specific message for each individual’ -Austin Craig

Here’s a nice infographic that shows a little bit about how even online video ads may still be a much smaller chunk than TV ads, online ads are catching up fast:TV vs Online video

Filed Under: Why Video, YouTube Advertising

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