Ads on YouTube Result in Higher Conversion Rates Than Any Other Network

While other studies found that YouTube was weak when it came to social conversions, a new study suggests otherwise.

Conversion Rates

Earlier this year in a report from Shopify, we learned that YouTube seemed to have a lower conversion rate and a lower average order value than other social networks when it came to social commerce. However, there’s new data suggesting that YouTube may actually be the best social converter out there.

Convertro, a ROI analytics firm, analyzed 500 million clicks and 15 million conversions during the first quarter of 2014. The level of detail in their data collection allowed the company to determine at which point in the sales decision customers were influenced by different social networks, and YouTube seemed to perform best across the board.

“YouTube’s own search volume and preferential positioning on Google’s results help drive large amounts of traffic, of course. But when you get to YouTube, the content is rich, descriptive and usually helpful,”  Jeff Zwelling, CEO and co-founder at Convertro told VentureBeat.

The purchasing decision breaks down into several stages, according to VentureBeat:

  1. Being introduced to the product
  2. Viewing re-targeted ads or other marketing campaigns and material
  3. Deciding between products viewed at the previous two stages.

Stewart Rogers, director of marketing technology at VentureBeat Insight, notes that purchases still occur at all stages of the process. That said, 14 percent of the time, YouTube is the customer’s only point of exposure when viewing paid-placement content. Eighteen percent of the time, YouTube is the first network to introduce a product, and 14 percent of the time, YouTube closes the deal.

No other network showed conversion rates quite like YouTube — the other platforms mostly surfaced in the ‘middle’ stage of decision making. Twitter was nine times less effective than YouTube when it came to introducing a product through paid posts.

The interesting thing to note about Twitter is just how much it illustrates the difference between paid and organic marketing. ”Paying for a tweet means that it is 30 times more likely to lead to a direct purchase with no other interaction or research, and over five times more likely to result in the introduction of a product to a new customer,” according to VentureBeat.

While it may not be impossible to run an organic marketing campaign, the data indicates  that paid campaigns result in undeniably higher conversion rates.