Last Updated: Oct 12th, 2023
Almost everyone on the Internet knows about YouTube and has watched a video on it.
If you’ve been on YouTube, you’ve probably seen the ads that pop up before or during videos.
If you own a business, have you ever considered running these ads for your business?
Maybe you weren’t sure if YouTube was the right place for your ads or how to even get started.
First, let’s figure out if it’s worth your time and money to run ads on YouTube.
You can go through the whole post or if you prefer, you can directly go to the section of your choice from below.
Advantages of Running YouTube Ads
YouTube has some advantages when it comes to advertising. According to a study by AoI Platforms, YouTube is the best platform for introducing new products and getting people to buy them. The study found that YouTube has a conversion rate of 14%, which is better than Facebook and Pinterest.
Clearly, this is a platform that delivers a high ROI.
YouTube is a super popular video platform with 1.86 billion users worldwide. In the United States, 81% of adults use it. So, it’s a pretty big deal.
Now let us explore the variety of ads that can be run on YouTube. Yes, there’s more than one kind!
What Makes YouTube Ads Unique
YouTube calls its main advert format a TrueView ad. So what is so special about them?
You only pay for a TrueView ad when a user either:
- watches it for 30 seconds at least
- watches the entire video
- interacts with the CTA of the video
This kind of outcome-based approach to advertisement is revolutionary and offers the user much control and interaction. Such a participatory approach engages the user more, and the result is there for everyone to see.
Different Types of YouTube Ads
We will now explore different types of ad formats available on the platform.
1. Skippable In-stream Ads
This type of ad is the one that must be most familiar to you. These ads can appear before, after, or in-between a video.
The ad has an option for the user to skip it after 5 seconds. If they do so, you don’t pay anything. If they watch for at least 30 seconds, it gets counted as a ‘view’ for your ad.
Duration window: 12 seconds to 6 minutes
Compatible devices: Web browsers, TV, Mobile devices, Gaming consoles
Pro tip: Best to use to drive awareness, increase online sales, or generate leads.
2. Non-skippable In-stream Ads
These ads are slightly different from the skippable ones (obviously, it’s in the name!).
As the name suggests, they cannot be skipped by a user, and users are forced to watch them. However, the duration of these ads is limited to 15 seconds.
You would need to pay on a CPM basis, meaning you have to pay for every thousand views.
Duration window: 15 to 20 seconds
Compatible devices: Web browsers, TV, Mobile devices, Gaming consoles
Pro tip: Use these ads only if you know your target audience and are absolutely sure your messaging is of interest to them.
3. Video Discovery Ads or In-feed Video Ads
Discovery ads appear as thumbnails with up to three lines of related text to entice users to click on them. They are known as ‘discovery’ ads because it leaves it entirely up to the users to click on them.
These ads appear on the top users’ search list and their ‘suggested’ of ‘recommended for you’ list.
You do not pay anything unless a user interacts with them.
Duration window: NA
Compatible devices: Web browsers, TV, Mobile devices, Gaming consoles
Pro tip: Write compelling copy and use an attention-grabbing thumbnail to attract users.
4. Bumper Ads
These types of ads combine the best of skippable and non-skippable ads. They are short enough that users don’t mind watching, and users cannot skip them, so they have to watch them.
The key is to have a memorable message. These ads are best for increasing awareness and brand reach.
Duration window: 6 seconds
Compatible devices: Desktop web browsers, Mobile devices
Pro tip: Make your message highly impactful and memorable.
5. Outstream Ads
YouTube outstream ads are mainly focused on mobile users. They appear only on apps or websites that run on Google’s video partners.
They do not appear on YouTube.
Duration window: 5 seconds to 3 minutes
Compatible devices: Mobile devices
Pro tip: Best used as an extended ad strategy to expand video reach at an efficient cost.
6. Masthead Ads
Masthead ads are the most premium types of YouTube ads.
They run on the right side of the screen automatically on mute for up to 30 seconds. Users must unmute the video to see the entire ad and hear the audio. This requirement guarantees user interaction.
However, most businesses, especially small ones, steer clear of them due to their price tag. You cannot buy them directly. These ads are solely available on a reservation basis via a Google sales rep.
You are charged on CPM (cost per basis, making them cost as much as $2 million per day!
You can include up to 2 videos in your campaign to run on the same screen.
Masthead ads are best suited for campaigns that want to reach the most people in a short period.
Duration window: 30 seconds to any desired time
Compatible devices: Web browsers, TV, Mobile devices
Pro tip: They are a marketer’s dream come true IF you have the money! Go for it if want to reach maximum people in minimum time.
7. Display Ads
These ads are text, image, or animation based and appear to the right side of a user’s videos and above their video suggestion list.
They can have sound, but it is not autoplayed to preserve the video-watching experience. However, sound becomes available when the user clicks on the thumbnail.
Duration window: 30 seconds and above
Compatible devices: Web browsers
Pro tip: Use these ads if you are on a tight budget or are looking to experiment with YouTube ads.
8. Overlay Ads
Overlay ads are those banners that you must have seen that appear under a video. They are semi-transparent banners and can cover up to 20% of the lower portion of the screen.
These ads are text-based or video-based. They show up after a video starts playing. They are on-intrusive and come with an option to close them with an ‘x’ marked at the top right hand corner.
You can lead the user to any page with these ads. You do not need to have a video ad for this type of ad.
Duration window: 30 seconds and above
Compatible devices: Web browsers
Pro tip: Best for marketing on a budget and to leverage a good landing page.
What Type of Ads are Most Effective on YouTube
A survey of marketing professionals worldwide revealed that skippable in-stream ads were the most effective. Then came Display Ads, followed by Non-skippable Ads.
The effectiveness of any ad campaign greatly depends on your goals — whether you are looking at lead generation, brand awareness, consideration, or reinforcing your messaging.
For each of your goals, one type of ad campaign may be most suitable, and you can boost it by adding other formats as well.
Overlay and Display Ads are the cheapest and maybe your best choice if you are on a budget. They are also great for increasing brand consideration and experimenting with your messaging.
To drive traffic and sell products, you can use a combination of Discovery and Bumper Ads. Attractive offers or short-term deals do well as Bumper Ads. Skippable ads work best for sales and non-skippable ones for traffic.
To maximize your brand reach, go for a Non-skippable format. Add Bumper Ads to this mix, and you have a winning combination. If you have some more budget left over, expand the reach of your ad with outstream and masthead ads.
Final Words
YouTube is an excellent medium for finding your target audience and engaging with them. With its reach and high ROI, designing and running a YouTube campaign makes sense for all types of marketers.
The best way to begin your Google Ad strategy is to define your goal. Once you know what you want to achieve from your YouTube ad campaign, you can choose the suitable format and design a cairn strategy.
We at Scion have helped hundreds of customers run profitable YouTube campaigns as per their objectives and budget.
Get in touch for a winning ad campaign strategy today!
