Who doesn't know YouTube? YouTube has become one of the marketing channels for business these days. Over 2 billion users spend billions of hours watching YouTube videos. It is the second most popular platform in the world after Google, which has 13.3 billion visits per month. You can leverage YouTube's popularity no matter what your business size is. This will allow you to reach a broader audience while taking care of your targeting options like region and language.

YouTube offers some of the coolest marketing tools that you can't find anywhere else. In this guide, we are going to discuss YouTube ads in detail, and we will help you create one for your business.

What Are YouTube Ads?

YouTube ads are a type of Google Ads. This platform focuses on promoting video content on various social media platforms and search engines. It will allow you to maximize the reach of your video content. Particularly, Ads will be configured to increase video viewership and boost its impact.

There are billions of users on YouTube who use it for free regularly. These ads will be played between videos of free users. It can appear when the video starts and can also be seen in between if the video is longer. This is called YouTube advertising.

What Are the Types of YouTube Ads?

There are various formats for YouTube ads. It depends upon what format fits your business. It may get confusing because the format names have changed over time, so let us look into the major types:

In-Stream Ads

In-stream ads will appear before, during, or after regular YouTube videos. There are two types of instream ads.

Skippable Ads: These are standard YouTube ads that will last from 12 seconds to 6 minutes. Users can skip it after 5 seconds. Advertisers are charged only when the user watches the ad for at least 30 seconds or when they interact with the ad. This means your budget will be spent on the engaged user.

Non-skippable ads: They last for 15 to 20 seconds and can't be skipped by the user. Advertisers are charged based on their target Cost per Thousand views. Since viewers can't skip them, non-skippable ads are effective for brand awareness. These ads include a companion banner at the top right of the screen.

Bumper

Bumper ads on YouTube are short, last for 6 seconds or less, and cannot be skipped. They only appear before a YouTube video, and like non-skippable in-stream ads, these are paid for on a CPM view basis. While they will serve as a standalone ad campaign, Google recommends combining bumpers with longer in-stream ads. This proves effective for marketing.

Bumper ads are particularly suitable for mobile devices, which cater to users watching content on the go. You will face challenges in creating bumper ads due to their brief duration. This requires creative and concise content without room for unnecessary details.

Infeed Video Ads

In-feed video ads on YouTube are designed to be in a minimal format and seamlessly blend into the user's video-watching experience without any interruptions. They will seem like regular organic videos on YouTube but include additional text elements like headlines and two lines of text. These ads are marked with a yellow "Ad" tag and appear as the first thumbnail on the home feed.

In Feed, video ads can be found in various locations, such as:

• YouTube search results,

• Under recommended videos

• On YouTube's home feed

These ads can direct users to a video or a landing page. Unlike in-stream ads, users need to click on in-feed video ads, which makes them effective for engaging the user who wants to interact with your business. Advertisers are only charged when users click on these ads.

Masthead

Masthead ads on YouTube are like video Billboards and are displayed at the top of the YouTube home feed for 24 hours. They play automatically on mute. Alongside the main video, this ad format includes a static banner and can feature up to two companion videos.

Mastheads can be differentiated by their front and center placement on the home feed, which provides visibility. However, it is important to note that masthead ads do not target users based on their search history. Due to their high visibility and lack of targeted audience selection, mastheads are most effective for brand awareness and exposure.

These ads are suitable for brands with big budgets, which means minimum spending of $300,000 to $400,000 per day. If you have a smaller business, we advise you to spend on Skippable in-stream videos and in-feed video ads, which are cost-effective advertising approaches.

What Is the Specialty of YouTube Ads?

You may question the preference for YouTube ads over social media ads due to the additional work to create compelling video content. It is also more convenient to design simple visuals for Facebook ads. However, YouTube proves to be a powerful tool for brands aiming to showcase high-quality video content to a broader audience. A study comparing the two platforms revealed that YouTube ads generate more views, more clicks, and a higher conversion rate than Facebook Ads.

What Are the Benefits of YouTube Ads?

A good YouTube ad will engage users by engaging, provoking, or entertaining them. This kind of ad can even go viral. However, your video advertising strategy will ultimately depend upon your goals, products, and resources. Let us now look at areas where YouTube ads will prove beneficial for your business.

• YouTube stands out as users must engage with video ads, unlike Facebook and Google ads that can be easily scrolled past. Viewers on YouTube often watch all or some of your ads before accessing the content they click on. This is a good option for generating brand awareness.

• YouTube ads are well suited for products with visual aesthetics or those that can effectively demonstrate their value through video, even if they are not physical products.

• Video ads are impactful for reminding the customer about your product and service once they have already used it. You need to note that Google has restrictions on remarketing campaigns in certain niches, like healthcare and bankruptcy.

You need to understand your company's objectives and align them with the benefits of YouTube ads. This can help you make an informed decision about incorporating video advertising into your marketing strategy.

How Do We Target Customers Via YouTube Ads?

To set up and launch your YouTube video ad campaign, you will need a Google Ads account. Your targeting options for YouTube ads include:

• Audience Targeting: You have to define the audience that you want to reach based on demographics, interests, and life events such as marriage or graduation. You also target those who have interacted with your website or YouTube channel before.

• Content Targeting: You have to choose where your ads should appear, like specific channels, videos, apps, and websites. You can also target topics from YouTube's predefined list or use keywords related to searches on both YouTube and Google.

The choice of your targeting setting will depend on your campaign goals, which are:

Prospecting Ads: This will aim to reach new audiences who are unfamiliar with your brand or product. Prospecting ads require a different approach. We advise you to run multiple campaigns with diverse targeting settings, such as focusing on specific buyer personas, keywords, competitor's video viewers, or any relevant topic. You should also test various strategies that will help you identify videos yielding a higher user experience.

You can also implement content exclusions to prevent ad display on sensitive or inappropriate videos, enhancing ROI. YouTube will allow you to exclude ads from specific content types, like embedded videos and live streams. This will ensure that your ads are aligned with your brand preferences and values.

Remarketing Ads: This will be tailored for users who are familiar with your company and based on their previous website visits or actions. For remarketing, you need to use audience targeting to reach those already acquainted with your brand. This will consider factors like YouTube channel Subscriptions or pages viewed on the website.

How Do You Create a YouTube Ad for Your Business?

If you are new to creating video ads, you can't become a skilled visual content creator overnight. Google is developing a YouTube video-making tool, which will be an accessible video-creation tool that will simplify the process. Yet, since it is not publicly available, you can use other tools like Promo and Animotot for external guidance. These tools will help you build compelling video ads in just a few minutes.

After you make a video, let's look into the steps to create your first YouTube ad.

Uploading the Video

To upload a video to your brand's YouTube account, log in and click on the camera icon at the top right of YouTube. Then, choose "Upload Video." You will then be directed to the upload window, where you can upload your video. Also, make sure to provide the title, description, and tags for your video to convey relevant information.

Creating a Campaign

Now, sign in to your Google Ads account and click on "New Campaign." You will get the option to choose a campaign goal, but for now, click on "create a campaign without a goal guidance."

Next, select a campaign type, "Video" or "Display," depending on your goals. We want to create a video ad, so choose "Video." Now, you will be directed to select a campaign subtype. Choose whatever option is suitable for you and click on "Continue."

Configuring Campaign

After creating your campaign, it's time for you to configure it properly. Then, you need to ensure the accuracy of your bid strategy and budget campaign duration. Now, confirm the network, locations, and languages for your campaign. You can also find content exclusions. This will determine the placement of your ads.

Depending on your brand's nature, you can opt for a limited inventory of family-friendly content, or if your brand is more mature, choose expanded inventory. Moreover, you can exclude specific types of content and labels in this section.

Targeting Audience

You should target your audience by defining their demographic details, which include age, parental status, gender, and household income. Google will allow you to experiment with specific audiences like the "healthcare industry" or "bachelor's degree." Make sure you use keywords, topics, and placements to narrow down your targeting.

Finalizing Ad

Now, you have to set your maximum bid. In the "Create your video ad" section, select your YouTube video and choose the video format. After selecting the format, add the "Final URL" and "Display URL," and include your call to action and headline. You can also auto-generate a companion banner or upload your own. Once everything is set up, click on "Create Campaign," and your process will be done.

Is Measuring Important to Know the Success of Your YouTube Ads?

Yes, measuring your YouTube ads' performance is important to ensure their success. YouTube itself has lots of metrics that will automatically measure everything for you. As a beginner, you will be overwhelmed by that much data. At the initial stage, you need to focus on the view rate for skippable ads. It is important to know your real engagement rate. It will determine how well you can turn your viewers into prospects.

When your view rate is considerably low, you have to look at some of the aspects, such as uncompelling headings or a lack of attention captured by the video itself. Note that the first 5 seconds need to be engaging. If you go with non-skippable ads, you need to focus on engagement. Here, you will use CTR to determine whether your ad connects with your viewers.

If your CTR is considerably low, then the video is delivered to the wrong audience, or else, as stated earlier, the video may not be that engaging with your target audience. We recommend that you test both by experimenting with different viewers and also creating multiple videos.

FAQs

How do YouTube ads differ from other digital marketing platforms?

YouTube ads focus on promoting video content and maximizing reach across various social media platforms and search engines, distinguishing them from other digital marketing avenues.

What are the major types of YouTube ads?

YouTube ads include In-Stream Ads (Skippable and Non-Skippable), Bumper Ads, In-Feed Video Ads, and Masthead Ads, each serving specific purposes and targeting diverse audiences.

Why choose YouTube ads over social media ads?

Despite the extra effort in creating video content, YouTube proves to be a powerful tool for promoting high-quality videos, as evidenced by studies showing higher views, clicks, and conversions compared to Facebook Ads.

How can YouTube ads benefit my business?

YouTube ads are effective for generating brand awareness, remarketing to previous users, and marketing aesthetic products. They engage users who must interact with video ads, unlike other platforms where ads can be easily scrolled past.

What are the targeting options for YouTube ads?

YouTube ads offer audience targeting based on demographics, interests, and life events. Content targeting allows placement on specific channels, videos, apps, and websites, while settings differ for prospecting and remarketing campaigns.

Are there tools available for creating YouTube video ads?

While Google is developing YouTube Video Builder, accessible video creation tools like Promo and Animoto are currently available to guide users in creating compelling video ads in a short time.

How do I upload a video for my YouTube ad?

To upload a video, log into your brand's YouTube account, click on the camera icon, and choose "Upload Video." Fill in the title, description, and tags to provide relevant information about your video.

What are the steps to create a YouTube ad campaign?

To create a YouTube ad campaign, sign in to your Google Ads account, select "New Campaign," choose the campaign type as "Video," and configure bid strategy, ad budget, and campaign duration. Confirm networks, locations, and languages, and set content exclusions.

How do I measure the success of my YouTube ads?

YouTube provides various metrics, with a focus on the view rate for skippable ads and the click-through rate (CTR) for non-skippable ads. Low view rates may indicate unengaging content, while low CTR suggests misalignment with the target audience.

Why is it essential to measure YouTube ad performance?

Measuring YouTube ad performance is crucial to ensuring success. Metrics like view rate and CTR help gauge user engagement, allowing advertisers to optimize content and targeting for better results over time.

Leverage YouTube Ads for Your Business Growth

We know that understanding YouTube ad creation seems challenging at first. However, this guide aims to provide you with a basic foundation on how YouTube ads work and how you can create them with just a few clicks. You can bookmark this page for future reference.

YouTube ads operate similarly to other marketing platforms. It focuses on key metrics, conducts regular tests, and also prioritizes data analysis. Also, keep in mind that people visit YouTube for content, not for ads, so any results from your ads may take time. You won't even boost your sales overnight with one ad. But YouTube ads are worth trying as a marketing platform if your video is well executed and can have a significant impact on branding, which will generate engagement with your audience.