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5 different types of YouTube ads
1. Non-video ads
YouTube offers non-video ads that typically show alongside related content, either in search results or during other videos (though sometimes the platform gets it wrong and your video isn’t next to relevant content—it can often be hit or miss). Similar to discovery ads, you only pay when someone clicks on your ad. There are two types of non-video ads on YouTube:
- Show ads. It appears in the right sidebar when people watch a video, and includes an image, text, and a call to action (CTA).
- Overlay ads in video. It is displayed on top of existing video content from a monetized YouTube channel.
Best for: Non-video ads run a lot cheaper, both to create and serve, than video ads, so they’re ideal for lower-budget brands who still want to reap the benefits of video ads on YouTube.
2. Discovery ads
Discovery ads are slightly different from in-roll YouTube ads. Instead of playing at the beginning or middle of another video, it appears next to organic YouTube search results and includes three lines of text and a thumbnail. When viewers click on your ad, they may be directed to your video page or YouTube channel. You only pay when someone clicks on your ad.
Best for: Compete with similar content and share relevant, high-quality videos on specific topics.
3. Skippable in-stream video ads
These ads play before or during the video (pre-roll or mid-roll) and give viewers a chance to “skip” after five seconds. You only pay when users watch the first 30 seconds, all of them, or if they interact with your ad by clicking—basically, you only pay if they don’t hit the Skip button. Skippable in-stream video ads need to be at least 12 seconds long, but it’s the first few seconds that really counts—you only have five seconds to grab viewers’ attention and entice them to watch more.
Best for: Increase your reach, especially if you have a strong video with a great start. It helps to be specific with your ad content to grab the attention of your target audience from the start. These ads are also great for brands looking to drive traffic and conversions, as you only pay when viewers click.
4. Non-skippable in-stream video ads
The ad-blocking culture is widespread, and 76% of people automatically skip ads even though they may be interested in them. Non-skippable in-stream video ads address this issue by allowing you to serve pre-roll or mid-roll ads that viewers can’t skip. Since users can’t skip, you pay per impression (per person viewing your ad) at a cost per 1,000 views (CPM). This ad has to be 15 seconds long and really strong to attract a captive audience.
Best for: Increase brand awareness, especially if you have a very strong creative or message that can hold the viewer’s attention for 15 seconds.
5. Bumper ads
Like non-skippable video ads, bumper ads can be served on a pre-roll or mid-roll basis and are non-skippable. The only difference is that these ads run a lot shorter at six seconds of pop. Again, you pay for impressions in CPM.
Best for: Increase brand awareness with concise, snappy messages. When Google analyzed 300 bumper ads, it found that 90% created a huge increase in ad recall.
How to advertise on YouTube
Here’s a quick overview of how to set up YouTube ads:
1. Create a Google Ads account
If you don’t already have a Google Ads account linked to your brand, start by doing so. Here’s the page to get started.
2. Create a new video ad or ad campaign
- Click the Video option as your campaign type.
- Choose your campaign goals (leads, website traffic, product and brand considerations, or brand awareness and reach).
- Upload your video (Google will provide tips on the best showtimes for the campaign goals you choose).
3. Choose your target audience
Google has strong targeting options that span its YouTube ads. This means you can really hone in on the people you want to connect with. Choose who you target based on:
- Demographics: including age, gender, location, household income, occupation
- Life stage: includes homeowners, students, new parents
- Interests: topics and keywords that people use to search for what they are interested in (Google will use previous search behavior to find an interested audience)
- Remarketing: target people who have interacted with other videos, have taken specific actions on your website, or are subscribers to your email list
4. Set your budget
- Choose your bidding strategy. This will usually be determined by the type of campaign, your goal, and whether you want more conversions, clicks, or impressions (for example, lower cost of impressions than clicks and conversions).
- Choose your budget. Select the daily budget or total amount you want to spend over the lifetime of the campaign.
- Choose your campaign date. Decide when you want your ads to start running and when you want them to stop.
How much does a YouTube ad cost to run?
YouTube ads have an average cost per view between 10¢ and 3¢, with the resulting views calculated against your overall viewer count. To put this into perspective, it costs about $2,000 to reach 100,000 viewers.
YouTube ad specs
Here’s everything you need to know about video dimensions and specifications to qualify to run as a YouTube ad.
- Skippable in-stream ads, non-skippable in-stream ads, and bumper ads must first be uploaded as a regular YouTube video and follow the specifications for standard YouTube content.
- Discovery ads must comply with the following::
- File format: AVI, ASF, QuickTime, Windows Media, MP4, or MPEG
- Video Codec: H.264, MPEG-2, or MPEG-4
- Audio Codec: AAC-LC or MP3
- Aspect ratio: 16:9 or 4:3 is recommended, but YouTube will adjust the file automatically depending on the aspect ratio and device
- Frame rate: 30 FPS
- Maximum file size: 1 GB for Discovery ads
Quick tips for creating and running successful YouTube ads
- Include a CTA. Tell viewers what you want them to do with a clear and concise call to action, such as downloading a report, visiting your website, or signing up for a free demo.
- Know your audience. Have a very clear idea of who you want to target and detailed information about their interests, challenges and goals. Create customer personas for each segment of your audience and run ads to each of them.
- Add high quality text. Not everyone watches YouTube voice-enabled—it’s a good idea to invest in high-quality captions to put your ads out there for everyone.
- Create eye-catching visuals. YouTube is a visual channel, and your videos need to be high quality and stand out. Use editing software or editing apps to enhance your footage and make your ad look great.
- Aim to connect quickly. You have a few seconds to attract and engage your audience, so every second counts. Use your advertising time wisely to make your ads interesting, entertaining or educational.
- Pay close attention to YouTube analytics. Data from your ads and Google Analytics will tell you what is performing well and what is not. For example, if watch time is very low, you may need to rework the beginning of your ad to make it more engaging.
- Mix and match ad types. Don’t feel compelled to stick to one type of ad. Try a few different variations of your campaign to see which one suits your potential customers best.
- Use remarketing to stay ahead. Run remarketing campaigns alongside acquisition campaigns to stay relevant to existing customers or those who already know you.
Get started with YouTube ads
YouTube ads expose your brand to billions of people who are actively searching for relevant topics in your industry. Take advantage of advanced targeting capabilities and multiple ad formats to connect with new customers, increase brand awareness and drive traffic to your site.