Should you be investing in YouTube Ads?

Whether you’re an individual creator trying to grow your channel or a marketer who’s working to build more buzz around a business, YouTube Ads provide you with a valuable opportunity to tap into the platform’s massive audience. YouTube boasts more than two billion active monthly users, making it the second most-visited website on the internet after Google. And if you can get the attention of even a tiny fraction of that user base, you have the potential to see a lot of follower and revenue growth in return.

Of course, what might be right for one brand isn’t going to be right for another, and that’s as true for YouTube Ads as it is for any other type of marketing endeavor. Before you can decide if it’s worth making the investment, it helps to know exactly what YouTube Ads are all about—including YouTube Ads pricing, requirements, and results.

Sound like a lot to research? We’ve done the homework so that you don’t have to. Read on for a quick guide to YouTube Ads and how they might be able to benefit your marketing strategy. 

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What Are YouTube Ads?

YouTube Ads is the popular video sharing platform’s advertising service, offering brands and influencers the chance to reach a targeted segment of consumers on the site. Another way to think of it is as the YouTube-specific arm of Google Ads, since YouTube is owned by Google, and YouTube Ads uses Google data to decide when, where, and in front of whom a brand’s ads appear.

A well-placed YouTube ad—such as this one that appears before a video with more than two million views—can work wonders for a brand.
Source:YouTubeA well-placed YouTube ad—such as this one that appears before a video with more than two million views—can work wonders for a brand.

For many businesses, advertising on YouTube is just one part of a comprehensive digital marketing strategy that may also include maintaining a YouTube channel and sharing original video posts. And even within YouTube Ads, there are strategic choices to make, particularly in terms of the types of YouTube advertisements that you want to create.

Types of YouTube Ads

There are five types of advertisements you can run on YouTube:

  • Discovery ads
  • Non-skippable in-stream ads
  • Skippable in-stream ads
  • Bumper ads
  • Non-video ads

Discovery Ads

Help visitors find you by showing up on their YouTube Home or Watch Next feeds.
Source:YouTubeHelp visitors find you by showing up on their YouTube Home or Watch Next feeds.

Discovery ads are videos or channels that show up on YouTube’s search results page, much like the paid ads above the organic results on Google. Each ad includes a thumbnail image with three lines of text, and you’ll pay per click.

Non-Skippable In-Stream Ads

Non-skippable ads can’t be turned off, so viewers will have to watch the whole thing in order to access their content.
Source:YouTubeNon-skippable ads can’t be turned off, so viewers will have to watch the whole thing in order to access their content.

These are 15-second, commercial-like ads that run before (pre-roll), in the middle of (mid-roll), or after (post-roll) a video and cannot be skipped by users. You’ll pay a set rate per view.

Skippable In-Stream Ads

With skippable ads, a “Skip Ad” button appears for viewers after the first five seconds have played.
Source:YouTubeWith skippable ads, a “Skip Ad” button appears for viewers after the first five seconds have played.

These commercial-like ads run pre-roll or mid-roll and must be at least 12 seconds long. Viewers can skip the ad after the first five seconds, and you’ll only pay for the views of those who stick around for a minimum amount of time (usually 30 seconds, unless your video is shorter) or for direct interactions (such as clicking on a link in the ad).

Bumper Ads

Bumper ads cannot be skipped, but they’re short enough that viewers may be more likely to watch the whole thing.
Source:YouTubeBumper ads cannot be skipped, but they’re short enough that viewers may be more likely to watch the whole thing.

These bite-sized video ads (six seconds long) are unskippable and run pre-roll. You’ll pay a set fee every time you get 1,000 impressions.

Non-Video Ads

Non-video ads are text-based and can be “x”-ed out of or clicked-through for more information.
Source:YouTubeNon-video ads are text-based and can be “x”-ed out of or clicked-through for more information.

These show up as display ads with image and text in the right-hand side bar or overlay ads on videos associated with monetized channels. The price structure is similar to Google AdWords.

How Much Do YouTube Ads Cost?

YouTube Ads pricing varies based on the type of ad that you’re running and your preferred minimum and maximum spending limit.

The average cost for YouTube video ads is about $0.010 to $0.030 per view or click. Bumper ads are priced a bit differently at $1 to $4 per 1,000 impressions.

Advertisers set a minimum amount they want to spend per day (it can be as low as you want, though $10 is pretty standard) and a maximum amount. If you get enough views, clicks, or impressions to meet your max for the day, your ad won’t run anymore until your budget resets.

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YouTube Ads Requirements

There are strict requirements for YouTube video ads around things like technical specifications, data collection, and video formats—all of which you’ll have to adhere to before your ad can run.

Some of the more notable guidelines:

  • Non-skippable in-stream ads cannot be longer than 15 seconds.
  • All videos must be publicly available.
  • Content must be easy to understand and clearly identify the product, service, and/or brand that you are trying to bring awareness to.
  • No content that may be considered shocking to viewers is allowed.

In addition, all third-party tracking pixels must adhere to set standards, and you cannot have more than three tracking pixels per ad, regardless of how many vendors have a stake in it.

For a complete breakdown, take a look at Google’s video ad requirements.

How to Create YouTube Ads

Per Google’s requirements that all YouTube video ads must be public, your first step in creating YouTube Ads is making your video content and uploading it to your channel. If you don’t want it showing up on normal rotation, you can keep it unlisted so that it only appears in an ad capacity.

From there, follow these steps to put your ad campaign into gear.

1. Set the Parameters of Your Campaign

Go to your Google Ads account and click “New Campaign.” You can choose to optimize your campaign for a specific goal (or not) and select your campaign type, i.e., a display ad or an in-stream ad.

If your ad is video content, you’ll choose at this step whether you want it to be skippable or non-skippable, as well as whether it will appear on all of YouTube or just a select subsection of the site or its affiliates. Then choose the language(s) and location(s) of the audience you are trying to reach.

2. Set Your Target Demographics

Accurately defining who your audience is will help you get your ad in front of the right people. YouTube offers a wide range of demographic qualifications you can select from, including age, income, and search behaviors. You can also optimize your ad for remarketing to specifically target people who have already shown interest in your brand.

3. Go Live

Link your ad to a landing page and click “Create Campaign” to get it up and running. Note that it may take a few days for your ad to start appearing on the platform, and it will need to be approved before it can go live.

How to Use YouTube Ads

Nobody wants to waste time, money, or resources on ads that don’t convert. Follow these best practices to increase your chances of high engagement and a strong return.

Start With a Campaign Goal

You aren’t required to choose a dedicated campaign goal, but it’s a good idea to do so. When you let Google Ads know exactly what you’re trying to achieve, they’ll be able to recommend suggested settings and bidding techniques based on your unique objective.

Mix Up Your Video Formats

Use a video reach campaign to display your ad in multiple formats (skippable, non-skippable, and bumper) based on what will get you the most views for the least amount of money.

Monitor and Modify Your Budget

Start with a budget you’re comfortable with, and then use data and analytics to skew it up or down depending on your results. You can always set a total ad budget with Google to ensure that you never spend more than a certain amount during the entirety of your campaign.

Don’t Limit Your Reach by Age and Gender

When selecting your target demographics, consider leaving age and gender out of the equation. This will broaden your reach for maximum impact and may lead you to potential customers who you didn’t know would be interested in what you’re selling.

YouTube Ads Analytics: Are YouTube Ads Effective?

Advertising with YouTube can be an affordable addition to your digital marketing strategy. But do YouTube Ads results make it worth it? Many marketers would probably say yes, and so would their customers. According to survey data from Google and Talk Shoppe, 70% of YouTube viewers say the site makes them more aware of new brands—and that they’re 4x more likely to use YouTube for information on a brand, product, or service than another platform.

You won’t know if YouTube Ads will work for you unless you try it (and dig into your YouTube analytics), but with a low cost of entry, you don’t have much to lose from at least giving it a shot. To make sure you allocate your marketing dollars wisely, though, have a clear idea of your audience and campaign objective and follow the best practice tips above to increase your chances of running a successful ad. You should also work on building an authentic channel for your brand that can supplement your ad campaign with organic growth.

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Written By

Laura Mueller

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