Some brands rarely test new marketing channels when things are going well. They wait until something breaks. When costs rise, conversions drop, or revenue slows, then they're open to diversifying.
Smart brands treat media diversification like R&D. Some budget goes toward 'business as usual' channels that are working, and the rest goes toward finding the next growth lever, building the next growth lane before they desperately need it. Right now, one of the strongest untapped opportunities is YouTube. It's a genuine white space to reach new audiences, while competition remains relatively limited and attention is still priced accessibly.
So Why Are So Few Brands Using YouTube Ads?
Quite often we hear brands say that their customers aren't on there, but YouTube is the second-largest platform in the world, just behind Facebook, with more than 2.5 billion monthly active users - everyone's on there. But interestingly, only around 9 percent of indie brands are actively advertising on the platform. So how did that happen?
For years, most brand and agency teams were never really trained on YouTube advertising and instead, Media buyers built their expertise on Meta and Google Search. When YouTube entered the market, it was positioned as an extension of television and a space for big-budget advertisers focused on reach and awareness. YouTube for business was marketed around scale and efficiency, highlighting billions of users and vast reach, but the creative education never followed. Large advertisers simply repurposed their television spots, while agencies learned to optimizing, not storytelling.
But Some Brands Do Try
Without depth of understanding for the nuances of the platform, for those indie beauty or fashion brands that do try the platform, their ads are rarely developed optimally, with the right creative structure or campaign set up the results are disappointing, and brands conclude that YouTube didn't work.
Many brands set up YouTube ads within Google’s Performance Max, relying on automation and the platform’s black-box algorithm to do the work. In doing so, they miss the chance to intentionally use the more nuanced targeting options that make YouTube so effective, the very levers that help drive costs down and performance up.
Where to Start: The 10% Test
It's said that businesses like Coca-Cola put 70% of their media budget to what’s proven, 20% to what’s promising and 10% towards what’s completely new. It’s a smart way to think about innovation, and it applies perfectly to beauty, fashion, and lifestyle brands exploring new growth channels.
When allocating your test budget on YouTube, focus on a small group of best-selling or recruitment products that communicate your brand’s value and appeal to new audiences.
The creative framework for these categories on YouTube is highly specific and differs significantly from what works on Meta or TikTok. So lifting creative directly from other platforms rarely produces strong results, which is why a tailored approach grounded in YouTube’s unique viewing patterns and audience behaviours is essential.
Think Long Term
Our perspective is to rely less on YouTube for short-term promotions or limited-run collections, as the platform is designed for longevity and scale. Focusing on evergreen strategies delivers stronger and more sustained ROI. In the beauty category, there are ads that have run for over three years using the exact same creative. Once a campaign finds its winning formula, YouTube’s ability to scale is remarkable. The key is to think long term and focus on products that won’t feel dated over time.
We’re focusing deeply on YouTube, with a specialist team dedicated to the platform. With a background in storytelling, brand positioning, and years of experience across beauty and fashion, we understand the nuances that make creative perform here.
If you’re curious about how YouTube Ads could fit within your current mix, we’ve built a simple CPC calculator that estimates potential acquisition costs, for you to compare against Meta and Google Search. It’s a quick way to see where YouTube might deliver stronger efficiency for your brand. >>CLICK HERE TO GET IN TOUCH<< if you’d like to explore it.
Author: Effie Asafu-Adjaye
Effie Asafu-Adjaye is the Founder of Beautiful Sparks. Beautiful Sparks helps beauty and fashion businesses get more fanatics in love with their brands, by refining their brand strategy, messaging, branding, content storytelling, and community-building strategy. Read more about Effie here and on Linkedin.
