Guide to YouTube Advertising  

Skippable In-Stream Ads 

• What they are: Ads that play before, during, or after a video and can be skipped after 5 seconds. 

• Best for: Brand awareness, conversions, and engagement. 

• Pros: Only pay when a user watches 30 seconds or interacts. 

• Cons: Some users may skip the ad quickly. 

Non-Skippable In-Stream Ads

• What they are: Ads that must be watched before the video continues (up to 15 seconds). 

• Best for: High-impact brand awareness campaigns. 

• Pros: Guaranteed ad exposure. 

• Cons: Higher cost; risk of user frustration. 

Bumper Ads

• What they are: Short, 6-second non-skippable ads. 

• Best for: Quick, memorable brand messages. 

• Pros: High reach and recall. 

• Cons: Limited messaging capability. 

In-Feed Video Ads

• What they are: Appear in YouTube search results, watch pages, or the homepage. 

• Best for: Driving video views and engagement. 

• Pros: Target users actively searching for content. 

• Cons: Requires compelling thumbnails and copy. 

Masthead Ads

• What they are: A premium ad format that appears on YouTube’s homepage. 

• Best for: Large-scale brand awareness campaigns. 

• Pros: Massive visibility. 

• Cons: Expensive and requires reservation. 

YouTube Targeting Options 

To maximize your campaign’s effectiveness, YouTube offers several audience targeting options: 

Demographic Targeting

Age, gender, parental status, household income. 

Note household income is only available in the US.

Interest-Based Targeting 

Target users based on their search and viewing behaviour. 

Remarketing

Show ads to users who have interacted with your website before.

Custom Audiences 

Create custom intent audiences based on search behaviour. 

Placement Targeting

Choose specific YouTube channels or videos where your ads appear. 

YouTube ad costs depend on several factors, including targeting, competition, and ad format. On average: 

• Cost per View (CPV): $0.01–$0.30 per view. 
• Cost per Click (CPC): $0.10–$0.30 per click. 
• Daily Budget Recommendation: Start with a minimum of $10 per day for testing. 

Advertisers can control spending through Google Ads’ budgeting and bidding options, ensuring cost efficiency while maximizing reach.  

Your YouTube advertising costs depend on various factors, including: 

• Ad bid: How much you’re willing to pay per view or impression. 
• Bidding strategy: The method you choose to set your bids—manual gives you full control, while automated lets Google optimize for your goals.
  • Target CPM (Cost per Thousand Impressions): Pay per 1,000 impressions; best for brand awareness. 
  • Target CPV (Cost per View): Optimizes ads for views rather than impressions. 
  • Maximize Conversions: Uses machine learning to get the most conversions for your budget. 
  • Target CPA (Cost per Acquisition): Focuses on optimizing cost per conversion. 

ROAS (Return on Ad Spend) helps you understand the effectiveness of your YouTube advertising by comparing what you earn from a campaign to what you spent. While it sounds straightforward, measuring ROAS on YouTube is often more complex than it seems.

How to Calculate ROAS

ROAS = Revenue from Ads / Ad Spend

Example:

$1,000 (revenue) ÷ $500 (ad spend) = ROAS of 2
A ROAS above 2 is generally a good starting benchmark—but take it with a grain of salt.

Why YouTube ROAS Can Be Tricky

Tracking the true return on your YouTube ads isn’t always straightforward. That’s because people often don’t take action right after seeing a video ad. Instead, they might search for your brand later, visit your website through another channel, or convert days down the line. This makes it hard to know if YouTube was what actually drove the sale. Conversions are rarely attributed to YouTube ads unless you’re running a conversion-focused campaign with proper tracking in place.

To get a better understanding, you need to look at the full customer journey—not just the final click. This is called path analysis, and it helps you see how YouTube fits into the bigger picture. Tools like Google Analytics 4, Google Ads Conversion Paths, and attribution modeling can show you how users interact with different touchpoints before converting.

1. Hook Viewers Early 
   The first 5 seconds matter. Many users will skip ads if they can. Grab attention with a strong hook. 

2. Make your Branding Clear 
   You have a limited window of time to make an impression. Make sure your video ads are clearly branded, even if the user only watches a few seconds of the video. 

3. Keep it Short and Engaging 
   While YouTube allows longer ads, shorter ads (15-30 seconds) often perform better for engagement. 

4. Have a Clear Call-to-Action (CTA) 
   Make sure your CTA is clear and compelling. Direct users on the next steps (e.g., “Shop Now” or “Learn More”). Since many users will skip away, your call to action needs to be clear from the start of the video. 

5. Test Different Creatives 
   A/B testing helps optimize video ads for better performance. Test different lengths, messaging, and visuals. 

6. Target the Right Audience 
   Use YouTube’s advanced targeting features to reach users who are most likely to engage with your brand. 

7. Optimize for Mobile 
   More than 70% of YouTube views come from mobile devices, so make sure your videos are filmed in a mobile-friendly aspect ratio. 

How to Launch a YouTube Ad Campaign 

Step 1: Upload Your Video to YouTube 

Before running an ad, upload your marketing video to your YouTube channel. 

Step 2: Set Up Your Google Ads Account 

If you haven’t already, create a Google Ads account and link it to your YouTube channel. 

Step 3: Create a New Campaign 

Log in to Google Ads and select “+ New Campaign.” 

Step 4: Choose a Campaign Goal and Type 

• Select a goal (e.g., website traffic, brand awareness). 
• Choose “Video” as the campaign type. 

Note: If you’re running video ads to drive action, engagement, or conversions, select the new Demand Gen campaign type instead of the traditional “Video” campaign. 

Note: Google is transitioning away from Video Action Campaigns (VACs) and introducing Demand Gen as their replacement. Starting in March 2025, advertisers will begin the shift to Demand Gen, with all existing VACs automatically upgraded by July 2025. If your goal is to drive conversions, engagement, or action through video ads, it’s recommended to use the Demand Gen campaign type moving forward 

Demand Gen campaigns allow you to: 

• Run across YouTube In-Feed, In-Stream, YouTube Shorts, Discover Feed, and Gmail Promotions. 
• Use rich creatives, audience insights, and predictive AI to target high-intent users 
• Combine multiple ad formats into one cohesive campaign. 

Step 5: Select Campaign Subtype and Strategy 

If using Demand Gen: 

• Choose a subtype like “Demand Gen” or “Demand Gen – Video.” 
• Select a bidding strategy (e.g., Maximize Clicks or Maximize Conversions). 

If using traditional Video campaigns: 

• Choose subtypes like “Skippable In-Stream”, “Non-Skippable In-Stream,” or “Video Reach Campaign.” 
• Choose a bidding strategy (e.g., Target CPM or Target CPV). 

Step 6: Enter Campaign Name and Budget 

• Name your campaign. 
• Set a daily or total budget  
• Choose start/end dates. 

Step 7: Define Networks, Locations, and Languages 

• Choose where your ads will appear: YouTube search results, YouTube videos, or the Display Network. 
• Define geographic targeting and languages.  

Step 8: Set Up Content Exclusions 

• Choose inventory types to avoid inappropriate content. 
• Exclude certain video types, like live streams. 

Step 9: Configure Audience Targeting 

• Select demographics, interests, and custom audience segments. 
• With Demand Gen, you can also leverage lookalike segments or engaged-view audiences 
• Use separate campaigns to test different audience groups. 

Step 10: Set Keywords, Topics, and Placements 

• Target specific search terms, video topics, or YouTube channels. 
• Refine targeting based on audience engagement. 

Step 11: Set Bidding Strategy 

• Choose CPV, CPM, or CPC bidding. 
• Adjust bids based on performance goals. 

Step 12: Create Your Video Ad 

• Insert your video’s YouTube link. 
• Choose ad format (e.g., in-stream or in-feed video ad). 
• Add a title, description, CTA, and display URL. 

Step 13: Finalize and Launch 

• Click “Create Campaign.” 
• Link Google Ads to your YouTube account if not already connected.