YouTube Ads Guide for Beginners + Expert Advice

Being the second largest search engine and over two billion active users, YouTube gives you unparalleled reach and exposure. Today, 60% of the population prefers online videos over television, offering brands a golden opportunity to market via visual content.

Here, YouTube advertising is your way to get the promotional content across your audience and get higher conversions. Unlike other social media sites, it uses keywords and Google Analytics to ensure the ads are viewable to relevant audiences. However, advertising YouTube videos is not just uploading them, but requires a thorough content strategy and a lot of brainstorming.

Sounds intimidating? Worry not! I am here with this beginner's guide to YouTube advertising. I will take you through different ad formats, how to create a YouTube ad, how to launch a campaign and a few best practices. So, keep reading.

Part 1: Let’s Understand YouTube Advertising

YouTube is all about the consumption of video content, making it perfect for advertisement. Businesses use this platform to market their products, increase brand awareness, and generate leads. Here is why advertisers prefer YouTube marketing over other social media channels.

• Being the second largest search engine, YouTube gives enterprises exposure to a wider audience, translating into higher conversions.
• The unique video ads let you build a special brand identity that resonates with the audience.
• YouTube analytics gives you valuable insights into the viewers’ data, sales, and conversion rate.
• The platform allows retargeting campaigns on Google Display Networks for users already familiar with your video ads on YouTube.

Generally, YouTube advertising is based on two ad pricing, CPC (cost-per-click) and CPV (cost-per-view). Both models involve the advertiser paying for the user’s action. For instance, when a user clicks your ad or views it for 30 seconds, it is considered payable. Here, YouTube lets you select one model, depending on your campaign subtype and goal.

On average, the YouTube video adverts cost approximately $0.10 - $0.30 per click/view. Given this, a 100,000 viewers would cost around $10,000 - $30,000. That said, the YouTube advertising price varies, depending on your bidding strategy and business goals.

What’s New About YouTube Advertising?

Advertising on social media is different from YouTube advertisements. Hence, it is significant to know the fundamentals of the platform and what works best. Here is all about the changes Google has introduced for YouTube advertisements.

• Brand Safety: YouTube prioritizes protecting its audiences and advertisers. A significant update, since 2020, was regarding inappropriate language. For instance, using the F-word in the first ten seconds of your video can result in no or minimal ad revenue. 
• Targeting Users on their Search History: Google lets YouTube advertisers attract viewers on their mobile devices. For this, a new update came, allowing YouTube to attract viewers using their Google search history. Now, they can also target specific people searching for a specific product.
• Audio Ads: Podcasts are proof that audio content sells. Given this discovery, Google lets advertisers create audio ads only. Though experts recommend starting with a video ad, you can switch to audio to build your exclusive brand voice.
• Updated Data Attribution Models: Now, it is easier to measure how users are interacting with your ads. With updated YouTube data attribution models, marketers can now analyze their ads’ cost-per-conversion performance with insightful reports.  

Part 2: Types of YouTube Video Ads + Cost

Here is a breakdown of the popular YouTube ad types and their pricing models.

1. Skippable In-Stream Ads

The most popular and standard YouTube ad format is skippable in-stream ads. Played before, during, and after the video, the skippable ads can be skipped after five seconds.

These ads usually last from twelve seconds to six minutes. Marketers can also customize their video skippable ads with overlay text, highlighted content, etc.

The pricing of skippable ads involves three billing models, CPV (cost-per-view), CPA (cost-per-action), and CPM (cost-per-mile). You only pay for the impression if the viewer passes the 30-second mark, watches the complete ad, or interacts with it (pressing a link). 

2. Non-Skippable In-Stream Ads

Non-skippable, in-stream ads do not have the skip button, which means viewers have to watch the complete video. These ads last from 15 to 20 seconds, depending on your location.

Non-skippable ads are paid on a CPM basis. Just set a maximum CPM and pay based on impressions. However, you will have to pay for each view. 

3. Bumper Ads

Like the other two above, YouTube plays bumper ads before, during, and after the video. Typically, these ads are six seconds or shorter, with no option to skip the ad.  

With bumper ads, viewers don’t get annoyed and are more likely to focus on the content. You will be paid for such ads on a CPM basis (per thousand impressions), giving you better control. 

4. In-Feed Ads

Previously known as video discovery ads, the in-feed ads are on the YouTube homepage, next to related YouTube videos, and search result pages. You will mostly find them after a YouTube search.

In-feed ads are just like a normal suggested video, having a header, thumbnail, and description, in addition to the ad symbol. You are only paid for these ads when the viewer presses the thumbnail.   

5. Overlay Ads

Overlay ads are not the video, but banner ads, shown at the bottom of the video. These ads are supplementary to in-stream video campaigns. 

Now that you have a basic understanding of YouTube ad formats, let’s discuss a few things that may help you narrow down the correct format and make one that delivers for you campaign. 

• Length: YouTube ad length varies, depending on your content. However, when the viewer goes beyond the 30-second mark, it is considered a view.
• Skippability: Decide whether the viewer will have to watch the entire content or an option to skip it after a few seconds.
• Sound: Unlike Facebook, almost all YouTube ads have sound on.

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Part 3: How to Get Started With a YouTube Ad Campaign?

Clear about the fundamentals of launching a YouTube ad campaign? It is time to learn how to do it. But before this, have everything written down on paper, from your campaign goals to formats, pricing, etc. Here is how to do it.

1. Log into Your Google Ads Account

Before you begin, open YouTube, visit your channel and upload a file.

Once done, sign up or log in to your Google Ads account. Navigate to the section that says Are You a Professional Marketer or Set Up Without Creating a Campaign? It will take you to the new Google Ads dashboard.  

2. Create a New Campaign

Follow these simple steps to get started with a new campaign.

• From the dashboard, press New Campaign.

• It will ask you to set a goal and campaign type. I typically select “Create a Campaign without Goal’s Guidance”. You can choose accordingly.

• Next, choose Video from the Campaign Type section.

3. Choose The Campaign’s Subtype

It’s time to narrow down your campaign’s goals, whether it is outstream, video reach campaign, or sequence. From here, most advertisers usually select a Video Reach Campaign.

Not sure? For now, you can choose the custom video or the diverse conversion campaign. Later, you can change this to whatever you like.

• Similarly, select the type of ads to reach your goals, Efficient (skippable, bumper, or a mix) or Non-Skippable In-Stream ads.

• Next, add your Campaign Name in the respective field.

4. Set Your Bidding Strategy

Once done, it’s time to set your bidding strategy. Depending on your campaign’s subtype, choose the bidding strategy. It can be challenging if you are new, as each format has its dedicated requirements and cost. A few potential bidding options include,

• Target CPM means paying for every thousand thumbnail views.
• Viewable CPM allows you to set your target per thousand viewable impressions.
• Maximum CPV is the most common bidding strategy for advertisers. It sets a maximum cost per view.
• Maximize Conversions lets you integrate your Google Ads account for maximum conversions within your budget. 
• Target CPA means paying a targeted price per conversion.  

5. Choose Your Network, Location, and Languages

Now, decide a few parameters regarding your ads. First, choose where you want the ads to appear. A few locations for your ads include YouTube videos, search results, or display network partners’ websites. If you do not wish to market through display networks, deselect them from the screen.

Pro Tip: Create separate campaigns for YouTube videos and search results, as it helps track performance better later.

Next, select the location and languages you want the ads to appear in. It is directly proportional to your target audience's language.

6. Select Your Content Exclusions

YouTube believes in making content secure for brands and viewers. Hence, it allows setting content exclusions. For instance, if you do not want to advertise your brand on videos with profanity, select either Expanded Inventory (excluding extreme graphic content), Standard Inventory (excluding strong graphic content), or Limited Inventory (excluding moderate graphic content).

7. Add Videos

Now, add relevant videos from your channel to the campaign. Most advertisers overlook it, but it is the key to increasing engagement.

Pro Tip: If your Google Ad and Google Merchant Center feed are connected, opt for adding videos from the advanced settings. It will help you show your product cards with YouTube ads. With this, you can even schedule custom YouTube ads bidding to limit the impressions.

8. Set Targets

YouTube campaigns give you complete control of your target audience. Here, you will get two options, People and Content.

• People refer to the audience you want to reach, regardless of the videos. In this option, you can set the audience’s demographics (gender, age, income, parental status, etc), and audience segment (married, similar to your customers, have certain apps on their phones, etc).

• Content refers to the kind of videos you want the ads to appear in, regardless of the audience. In this option, you get keyword targeting (content targeting specific keywords), placement targeting (specific channels, videos, and lineups), and topic targeting (ads placement to relevant topics like hiking and camping). 

You can choose from people and content, depending on your campaign goals. It even allows you to layer them together for narrow reach. For example, choose people in the market for camping equipment, only on videos with topics related to camping.

9. Create your Ads

Now, comes the most important step, creating your ads. The ad must be uploaded to your channel first. Once done, add the URL for the video you want to run your ads for, and choose whether it will be an in-stream or in-display ad. For each, you will need specific things, like a short description, title, etc.

Most new advertisers feel hesitant to produce quality video ads due to budget restraints. However, it doesn’t need to be expensive.

Pro Tip: AI video solutions like Wondershare Virbo might help. For instance, it has a montage maker that captures your clips in a montage, promoting visuals and engagement. Moreover, if you want to make a promotional advert, use its URL-to-video generator. It uses your product’s URLs from e-stores like Amazon and Shopify and transforms them into visuals. This way, you don’t have to spend heftily on ad creation.

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Once you have added the link to the ad, press Done > Create Campaign.

10. Set your bid and measure success

Finally, set the maximum CPV cost. Confirm it and it will take you to your credit card information. Make payment and you have successfully launched the campaign.

All that’s left is measuring the conversions. For this, link the campaign to your Google Ads account. From the top bar, press Tools and Settings > Set Up > Linked Accounts. Select YouTube from here and add your channel. Pick metrics for success and you will be notified of your ad performance against these metrics.

Part 4: Tips to Optimize Your YouTube Video Ad Campaign

Launching a video ad campaign is not just about following the right steps, but also adopting practices that can ensure your success. Here are a few I have been using for maximum conversions.

1. Define Your Metrics and Goals

The key to success in YouTube campaigns is defining your metrics. Experts recommend that when analyzing the performance, note the following four metrics for each video.

• Impressions/Views give you insights into how many people viewed the ads and what types of ads attracted the most ads. 
• The Audience category tracks audience engagement based on demographics like gender, age, parental status, economic status, etc.
• Conversions help you understand the return on investment ROI for your brand. 
• View Rate offers a detailed analysis of whether the messages and ads are interesting for people to watch the competing ad. Increasing this category will reduce your cost per view in the long run.

2. Track Placement Performance

For advertisers using the Google Display Networks, tracking low-performing placements helps significantly. With this, you can exclude your ads from websites with poor results. To check this, review whether the ad is and press Video Targeting> Placements > Ads Placements > Display Network. It gives you a complete list of website performance against your metrics.

3. Create Ads with ABCDs

The right ads for YouTube are all about building your brand’s identity. For this, YouTube has developed the ABCD framework. Here are some key parameters of this framework.

• Attract: A good video ad grabs your attention in the first five seconds. For this, elements like framing, fast-paced, and real people on the screen might help.
• Brand: Introduce your brand in the first seven seconds. It establishes authority and associates your brand with positive ad recalls. 
• Connect: A quality advert builds an emotion with the audience, especially with humor. This way, viewers feel connected to the real people on the screen.
• Direct: Your ads must be direct and create a sense of urgency. Simply put, they compel the viewers to take action like trying out your services. 

4. Use Custom Thumbnail Images

Using stunning thumbnails attracts viewers. Take a high-quality image from the video to improve clicks on the ads. Make your ads adaptable for multiple devices, including mobiles and laptops.

5. Create Call-to-Action

Promoting a product on your YouTube video? Add overlay ads for call-to-actions. You can use them to link it to a landing page, careers page, or even a product page.

6. Use Negative Remarketing

Remarketing is your savior if you have already been running a campaign for a long time and want to attract new people. Though you need to stretch the budget a little, it excludes existing viewers and lets you focus on a new audience base.

Conclusion

Content strategy on YouTube revolves around video content, which is why marketers should pay extra attention to advert creation. What’s best is that marketers today can use the viewer’s Google search history to target the audience and market their services. 

However, we must not forget the competition. Given the engagement and exposure it offers, almost every brand is marketing on YouTube. To get an edge in YouTube advertising, streamline your ad creation and monitoring processes with smart tools like Wondershare Virbo and Google Analytics, so you have more time to focus on strategizing the campaign launch. 

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