How AI is Reshaping Advertising on YouTube

How AI is Reshaping Advertising on YouTube

Any good marketer will tell you that in advertising, creativity isn't just about originality; it's about effectiveness. To this end, Google has been strategically deploying AI to help publishers significantly amplify the effectiveness and reach of their ads on YouTube.

The company is leveraging AI to reshape advertising in three major ways: enhancing creative, expanding reach, and opening new creative frontiers.

Firstly, AI is being used to ensure brands' YouTube ads follow best practices - critical for driving results. Google's "creative guidance" feature utilizes AI to analyze ad creative and provide real-time feedback. It checks for important elements like brand logos being present in the first five seconds, voiceovers, optimal lengths, and aspect ratios. If any best practices are missing, Google suggests tools to improve the ad.

Reformat horizontal video ads into square or vertical formats based on how someone is watching YouTube

For example, quality voiceovers have been shown to significantly improve ad performance. Travel and lifestyle brand Monos found that video ads with voiceover drove 81% more conversions than those without. Now users can use AI to automatically generate voiceovers in 15 languages. Other quick AI fixes include adjusting video duration or using templates to add missing vertical/square formats. This automated feedback loop allows advertisers to optimize ads quickly.

The video creation tool in Google Ads allows you to add a custom voiceover to any template.

Secondly, AI powers YouTube's advanced targeting, ensuring ads appear in the most relevant contexts. This expands reach and boosts engagement across devices, formats, and viewing experiences. For example, Google employs AI to place ads within YouTube's growing ecosystem of Connected TV, Shorts, and more.

This precision pays off. EBay saw a 34% conversion rate increase and an 11% decrease in Cost Per Mille (CPM) after adopting Google's AI-driven video campaigns across YouTube. More impressively, eBay's view rate on YouTube Shorts surged by 114% after creating over 100 new assets.

Finally, AI opens new creative possibilities on YouTube. Google is developing generative AI tools to help even small brands produce professional video ads at scale. These tools can whip up visuals, dub voiceovers, adapt assets for different formats, and more.

As AI tech progresses, Google envisions it becoming an indispensable creative partner for YouTube advertisers. It will aid ideation, production, and analysis. In essence, AI will revolutionize every facet of ad-making on YouTube.

While the use of AI in advertising is neither new nor surprising, its nuanced application in YouTube's expansive ecosystem is a compelling study in how intelligent algorithms can augment creative human endeavors. As Google doubles down on AI innovation, advertisers can expect ever-more sophisticated capabilities to drive video ad success on YouTube.

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