YouTube Shorts is rapidly gaining traction in the advertising space, averaging over 200 billion daily views in the second quarter. Advertisers are increasing their spending on Shorts, with some clients experiencing an 11 percent rise in expenditure. The competitive CPM rates, around $5 for Shorts versus $10 to $12 for Meta's Reels and TikTok, make it an attractive option. New campaign options from Google have also empowered advertisers to focus solely on Shorts, facilitating easier integration into marketing strategies.
A big driver for us is that we're constantly seeing CPMs around $5 on Shorts compared to around $10 to $12 on Meta's Reels and TikTok. So YouTube Shorts is an easy lever for efficient, incremental reach.
YouTube has [now]given advertisers control to exclusively target Shorts inventory across the four main products: Video Reach Campaigns, Video View Campaigns, Demand Gen and YouTube Select. This is a big unlock for YouTube, allowing brands to seamlessly incorporate Shorts into their social strategies without the complexities of the broader YouTube ecosystem.
The motivation to spend more on YouTube's Shorts especially increased as Google rolled out new Demand Gen campaign options over the last several months, including the ability to isolate Shorts placements and produce standalone Shorts campaigns.
We received full team enablement from Google, and any client utilizing Shorts has witnessed a substantial boost in their advertising effectiveness and overall reach.
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