YouTube Shorts ads are more cost-effective and more engaging than their TikTok counterparts, according to the results of a test conducted by Precise.TV. After running standalone Shorts campaigns for brands like Asics, the video ad agency found that short-form YouTube ads cost about 50% less than TikTok ads.
Precise.TV’s Shorts campaigns were notable because they only included placements on YouTube’s TikTok competitor. Ads have been available on Shorts since February, but only as part of larger ad packages. Precise.TV was given unprecedented access to Shorts content, whereas other agencies rely on YouTube to allocate budgets between Shorts and long-form content.
As a result of that unique setup, Precise.TV was able to draw precise data (sorry) from its Shorts campaign. The agency’s Chief Commercial Officer, Denis Crushell, told AdAge that the YouTube Shorts spots were 46% cheaper than equivalent TikTok inventory, and the YouTube ads had more average watch time as well. AdAge, citing sources in the advertising industry, wrote that Shorts ads have an average CPM of $4. For TikTok, the average CPM reportedly hovers around $8, though the ByteDance-owned hub declined to comment on the app’s pricing.
“Shorts is very comparable to a platform like TikTok or Instagram Reels,” Crushell told AdAge. “You can like the ad, share it, or comment, which is different than in-stream and pre-roll on YouTube.”
The Precise.TV Shorts test made Asics “one of the first sporting goods retailers advertising on Shorts,” according to Asics Digital Senior Marketing Associate Victoria Botana. More brands are expected to buy into Shorts ads as YouTube continues to “turn on the advertiser tap,” as Crushell put it. At this past year’s NewFronts, YouTube announced its plan to bulk up Shorts advertising with new formats and campaign types.
Precise.TV’s data analysis has resulted in pro-YouTube findings on several occasions. The agency conducted a survey of gamers and found that YouTube, not Twitch, was their preferred platform. YouTube also cited data from Precise.TV when touting its connected TV viewership during its most recent Brandcast presentation.
In this case, the Shorts ad format is showing clear growth potential. It won’t be long before more creators and brands add their names to the Shorts advertising success stories that have already been told.
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