Research

Evaluating YouTube User Engagement: The Impact of YouTube Advertisements on Consumer Decisions and Perceived Viewer Benefit

Author: Ayodele Tomisin

Abstract

This thesis looks at how YouTube ads affect people's decisions and experiences on the platform. A short survey of 15 participants in the UK showed that most viewers (90%) find YouTube ads disruptive. They either skip them as soon as possible or subscribe to avoid them. These results suggest that ads are not always effective in getting attention for new businesses, although there are still cases where ads can spark interest if they feel relevant.

Introduction

YouTube is one of the most popular places for watching videos online. It's also a major platform for businesses that want to reach customers. For small businesses and startups, ads on YouTube seem like a good way to spread the word. But how do people actually respond to these ads? Many see them as interruptions, while some do find value in discovering new brands.

This project explores how useful YouTube ads really are for engaging people. It focuses on whether people skip or watch ads, how much they think ads help them find new products, and whether ads push them toward YouTube Premium.

Research Goals

The main aim of this research was to see if YouTube Ads are a good tool for startups to build awareness. The specific questions were:

• Do ads help people learn about new businesses?
• Do ads affect the choice to pay for YouTube Premium?
• Do YouTube ads actually increase engagement with brands?

Methodology

• Method: Online survey (self-completed).
• Location: UK.
• Dates: September 2–3, 2024.
• Participants: 15 people (7 female, 8 male, ages 18–50, all using YouTube for at least 1 year).
• Format: 5 minutes per survey vs. drop-off.
• Key measures: Survey completion.

Results

RQ1: How do users interact with YouTube Advertisements?

• 90% said they skip ads right away or avoid them by subscribing.
• Only 10% sometimes watch ads, usually if the content is relevant.
• Clicking or fully watching ads was very rare.

RQ2: Do users see YouTube ads as useful for discovering businesses?

• On a 1-5 scale, the average score was 1.8 (very low).
• Most participants said ads were intrusive or annoying.
• A few noted they had discovered products through ads, but this was uncommon.

RQ3: Do ads influence YouTube Premium subscriptions?

• 40% were current or past Premium users, mostly to avoid ads.
• 30% thought about Premium but didn't subscribe due to cost.
• Ads never completely stopped people, but still disliked ads.

RQ4: Are YouTube ads effective for startups?

• Only 20% recalled seeing an ad from a small business recently.
• Just one person (7%) actually took action like visiting a website or following the brand.
• Overall, startup ads had very little impact.

Limitations

• Small sample size (15 people, all UK-based).
• Relies on self-reporting, not observed behavior.
• Survey was short, so depth was limited.

Conclusion

This shows that YouTube ads are not very effective for driving engagement, at least for most people. The majority either skip them or pay to avoid them. For startups, relying only on YouTube ads may not be the best approach.

Instead, small businesses might get better results by combining ads with other strategies, such as influencer partnerships, organic video content, or social media campaigns. Ads should be kept short, relevant, and non-intrusive to stand a chance of being noticed.