By: Melissa Mackey, Head of Paid Search, Compound Growth Marketing
"We tried YouTube. It doesn’t convert."
If I had a dollar for every time a B2B client told me this, I could probably fund my own ad campaigns for a year. And to be fair, they aren't wrong. If you look at your dashboard, you will rarely see a direct line of conversions attributed to your video campaigns.
But here is the catch: If you pause those "non-converting" YouTube ads, your Search campaigns might just fall apart.
I serve as the Head of Paid Search at Compound Growth Marketing, where we focus solely on B2B advertisers. I know that YouTube often feels like a paradox in our industry. It feels designed for consumers: unboxing videos, toy reviews, and makeup tutorials. B2B companies don't usually have "unboxing" moments. We have complex software, long sales cycles, and multiple decision-makers.
However, after years of testing, I can confidently tell you that YouTube is the hidden engine behind successful B2B paid search strategies. It’s not about the direct sale; it’s about the assist.
In this post, I want to show you why video is the missing link in your lower-funnel performance. Here is what we are going to cover:
Real-world data: Two case studies showing how video lowered Cost Per Lead (CPL) by up to 47%.
The "Halo Effect": Why pausing video makes your Search ads more expensive.
The Blueprint: Exact settings for targeting, creative, and bidding that work for B2B.
Budgeting: Why you only need 5% of your budget to make this work.
To understand why YouTube works for B2B, you have to stop looking at it as a sales closer and start looking at it as a conversation starter.
We work with an enterprise B2B SaaS client that was struggling with low awareness. Their solution was complex—honestly, people just didn't understand what it did. Text ads weren't enough to convey the value.
We decided to create educational videos to explain the value proposition before the user ever searched for the product. The results were undeniable.
Solution A: We saw a 30% decrease in Cost Per Lead, along with an improved click-through rate (CTR) and conversion rate on their Search campaigns.
Solution B: We saw a 25% decrease in Cost Per Lead and a doubling of their conversion rate.
Here is the interesting part: For Solution B, the competitive landscape actually got tougher. CPCs went up and front-end metrics looked worse. But because the video ads had educated the audience so well, the conversion rate spiked enough to offset the higher costs. The client didn't care about the expensive clicks because the leads were cheaper and more plentiful.
This is my favorite example because it proves the correlation so clearly. We had a local B2B business that wanted to show off some cool videos they made. We launched a consideration campaign.
After five months, they looked at the data. Zero direct conversions from YouTube. So, they decided to save the money and pause the campaign.
The result? The Cost Per Lead on their Brand Search campaigns immediately shot up by 47%.
At first, we thought it was a coincidence. We optimized, we tweaked, we panicked a little. Nothing worked. Finally, we turned the video campaign back on. almost instantly, the CPL dropped back to its original baseline.
Emboldened by this, we added a Demand Gen campaign to the mix. The CPL dropped another 47% below the original baseline. The video ads weren't harvesting the leads, but they were planting the seeds that the Search campaigns eventually harvested.
There are three main reasons why this strategy works so well for B2B:
It Simplifies the Complex: You cannot explain a cloud-based enterprise integration in 90 characters of text. A 15-second video can do the heavy lifting, so when the prospect finally searches for you, they already get it.
It Builds Awareness Before the Click: Search captures demand; video creates it. By the time the user types your keywords into Google, they are already familiar with your brand.
It is Surprisingly Cheap: Years ago, you needed $10,000 or $20,000 a month to run video. That is gone. In the local business example I mentioned above, we were spending about $500 a month on video.
If you are ready to test this, do not just throw money at the platform. You need to set this up specifically for a business audience. Here is my checklist for success:
Google provides "In-Market" and "Affinity" audiences (like "Business Professionals" or "Technology Enthusiasts"). Avoid these. They are too broad and too consumer-focused.
Instead, use Custom Segments based on your high-performing search keywords. You are essentially telling Google, "Show this video to people who search for these specific B2B terms." (If you need a step-by-step on setting this up, my host Jyll Saskin Gales has a book that walks you through it perfectly).
Don't target the whole world. For our local client, we focused on specific cities. Even for our global SaaS client, we only targeted the specific countries where they needed help. Precise geo-targeting prevents wasted spend.
B2B advertisers love their 2-minute explainer videos. Do not run those as ads.
Keep it to 15 to 30 seconds.
Get your logo and brand name in the first 5 seconds.
You need at least two variations to prevent ad fatigue.
We use Target CPV bidding. In almost all our campaigns, we get views for under a penny. This is arguably the most efficient way to get eyeballs on your brand.
You do not need a massive budget. Allocate just 5% of your total paid media budget to YouTube. The goal is to assist your Search campaigns, not replace them.
The biggest mistake you can make is judging a fish by its ability to climb a tree. Do not judge your YouTube campaigns by direct conversions.
You need to measure the Halo Effect. Take a baseline of your Search CPL and Conversion Rate. Launch the video campaign. Wait a month. Then look at your Search metrics again.
We have seen this positive impact with almost every single client we have. It’s not a fluke; it’s a fundamental part of how modern B2B buyers make decisions. They need to see you before they search for you.
So, start small. Take 5% of your budget, build a Custom Segment, and get your video out there. Your Search campaigns will thank you.
Melissa Mackey is the Head of Paid Search at Compound Growth Marketing.
You can find her on LinkedIn