YouTube Ads: The Ultimate Guide in 2021

November 11, 2020
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YouTube is something we are all linked to in one way or another. There are over a billion users on this platform only. Among the 1/3 of people using the Internet, each person spends hours on video.

We may not realize but videos are a powerful tool generating billion of views. Only in the US YouTube reaches 18-49 years old and that too on mobile phones.

Want to know the best part?

A recent report of 2018 claimed that video helped 76% of businesses to increase sales. Also, up to 81% of people are actually convinced to buy products via the brand’s videos.

YouTube Ads is a powerful video marketing tool that you can also use. Today we will share with you a detailed overview of YouTube Ads and how you can use them.

From different types of YouTube Ads to setup steps, we got your back.

So let’s begin without further ado!

What is YouTube Advertising?

YouTube Advertising

YouTube is a place where you can see everyday trending and viral videos. Most youngsters spend most of their time watching YouTube videos.

It has a very large network because every person can see videos free of cost.

You might be wondering?

If YouTube is a free video playing platform then how can YouTubers earn?

The answer is very simple. Because YouTube Ads are the only way through which YouTubers can make a large amount of revenue.

Through Google ads, people do YouTube advertising. To maximize user reach, you advertise your content in search results or on YouTube.

Before a user views another video, this could be your video playing. By showing your video in YouTube search results people can watch your full video.

How Does It Work?

Like many other social media platforms, YouTube advertising is also done with the help of Google AdWords.

Choosing the target and placement of your ads you can create videos to upload them on Google AdWords. You can stop, run, and pause ads anytime when you want.

Also, you can see the analytics when you video runs on YouTube.

Benefits of YouTube Advertising:

In recent years, many organizations took their businesses advertising to YouTube. The number of YouTube content creators increases rapidly and this is not a shocking fact.

Because we all know that YouTube stream videos without taking any cost from the viewer. moreover, with the help of correct youtube advertising, you can increase your view rate by up to 1.5 billion.

Some more benefits are:


  • Give real-time insights.
  • Before a viral video, it shows an ad.
  • You have the freedom to create any type of creative content.
  • Multiple format options for ad.
  • Can target audience from multiple ways.
  • Purchase intent can be identified.
  • Through social media sharing, you can increase.
  • Easily set target.

How to Start Youtube Advertising?

Link your Youtube account with the Google AdWords accounts. If you do not have a Google AdWords account then create one. Always select general settings for your account.

Keep a normal daily budget of your ads and select an appropriate location where your ad will appear.

You can also select the specific regions in which you want to show your ads. Then, select your Youtube video to run an ad. You must select the video which you want to promote.

At a time, you can only select one video. You can also select your targeting options like keywords, device type, and demographics while creating Youtube Ads. Submit your video ad to youtube when you are done.

Types of YouTube Ads:

YouTube Ads

On youtube, a video contains multiple add which the viewer has to see. You can place an ad anywhere in the video like in the beginning, in the end, or in the middle. There is no restriction in placing your Youtube Ads.

Ad will play automatically in the video if it is TrueView In-Stream. But if it is an Overlay Ad that at the bottom of the video screen hovers unobtrusively.

Moreover, the discovery ad appears in search results. Regardless of the video format, youtube ads can appear anywhere.

Below are the following types of Youtube ads.

1. TrueView In-Stream:

The length of In-Stream youtube ads is no longer than 3 minutes and also, they have a skip button. If the viewer does not want to see the ad then he can skip it after five seconds.

On youtube apps in the Google Display Network, videos from partner sites, and watch pages these ads appear. They can be played anywhere in the video.

The main purpose of such youtube ads is to create buying intent.

2. TrueView Video Discovery Ads:

These youtube ads appear as a thumbnail image on video search results, on the youtube mobile homepage, and alongside youtube video.

For brand and product consideration this format is best to use.

3. Bumper Ads

The length of bumper ads is of few seconds. This is an unskippable ad and can play after, during, or before a video.

For great reach and brand awareness, this format is good. Videos on partner sites, apps on the Display Network, and on youtube videos bumper youtube ads appear.

4. Non-Skippable Video Ads:

Non-skippable video ads are the least popular format among other youtube ads format. The duration of these ads is 15 to 20 seconds which the user can not skip.

The viewer has to see it completely to continue the video. These ads can give benefits when you make sure that from beginning to end viewers receive the message.

5. Overlay Ads:

These youtube ads can be made as simple as a text or as colorful images like logo and slogan. Across the bottom of the video, these videos appear as a small banner.

You have the option to view or skip these ads. These ads are unobtrusive which means viewers can watch their video peacefully. Overlay ads are best in gaining web traffic.

6. Cards and Sponsored Cards:

When the user-selected video continues to play cards display on it just like Overlay Ads. Cards are a small interactive button that only expands when the user clicks on it.

In the top right corner of the video screen sponsored cards to display as a small information icon. They are even less intrusive.

After hovering on the icon, you can select to have a call-to-action text. When you click on the icon, youtube directs you to the pages of your choice.

On youtube, TrueView ads are the most used youtube ads. Because they can come in multiple forms.

The best thing about TrueView is that you only have to pay when for at least 30 seconds viewers watch your ad or when they especially click on the ad.

What is a YouTube TrueView Ad?

YouTube TrueView Ad

TrueView Ad is the most useful format of advertising on youtube. For this reason, many content creators use it. TrueView is the most powerful format because of its control over the advertisements.

Also, according to google reports majority audience prefer the TrueView format among other formats.

These youtube ads also play an important in promoting businesses. Advertisers do not usually pay for their ads until the viewer watch the ad for at least 30 seconds or click on the ad to watch it.

But many youtube viewers prefer to skip the ad so that they can peacefully watch their youtube shows and enjoy without any interruption.

In this way, many advertisers save their money and try to promote the ad to the targeted audience.

The maximum length of a TrueView ad is 6 minutes and the minimum length is 12 seconds. Moreover, there are two more types of TrueView ads Let’s have a close look at them.

1. TrueView Instream Ads:

These youtube ads play before a selected video starts to play. There is a small countdown timer in In-stream ads and at the bottom left of the screen, there is a link to the advertised site.

Above the suggested video list in the right-hand sidebar, TrueView in-stream ads have a companion banner.

2. TrueView Discovery Ads:

Above the suggested videos list in the right-hand sidebar of watch pages, TrueView Discovery ads appear within the search results of youtube.

TrueView discovery ads consist of three lines of text and an image thumbnail. Users will direct to the YouTube watch page or the relevant page of the channel to view the video after clicking on the discovery ads.

Benefits of Youtube TrueView Ads:

To reach your target market youtube TrueView ads help you a lot.

Also, there is a low-risk chance in TrueView ad format. The best thing is that advertisers only pay when users watch an ad for at least 30 seconds or especially click on the ad thumbnail.

This is the best deal for any advertiser. Because most of the audience does not want any interruption while watching a show that’s why they just skip the ad.

According to the research, almost 76% of viewers feel free to skip the ad. In this way, many advertisers save their money and spent on the target audience to promote their business or products.

Moreover, you are not restricted by time limits because TrueView ads are opt-in. It means that you are free to experiment with different creative formats like testimonials, how-to-videos, or product demos.

As Google says, the existing ad views rate increase by up to 500% when brands use TrueView format. For Example, To produce a great effect Grammarly has used testimonials and product demos in their TrueView ads.

From the site, they get almost 54.4% of social media traffic.

 What is a YouTube Non-Skippable In-Stream Ad?

YouTube Non-Skippable In-Stream Ad

The non-skippable in-stream ads have the same functionality as TrueView ads. The only thing that makes them different is the ability to skip the ad. Viewers can not skip these ads like they do in TrueView ads.

These ads are usually unpopular. The 30-second unskippable ad format is killed by Youtube. Because the majority of viewers prefer 15 and 20 seconds of skippable videos.

These ads play in between the videos and can not be played before the video starts. There are also mid-roll non-skippable ads of 10 minutes.

On a CPM basis, advertisers pay for non-skippable youtube ads, unlike TrueView ads. The full form of CPM is cost-per-mile. It means that for per thousand views advertisers pay a selected amount of money.

That’s why it is important to select the target audience and specific area so that you can promote your brand through youtube ads. Keep in mind the function of CPM advertising while you select the options to create the ad.

For converting prospects into leads pay per click advertising is ideal but the cost per mile is more suited to brand campaigns. It helps to achieve massive exposure like Apple.

What is a YouTube Bumper Ad?

YouTube Bumper Ad

The third type of ad is Bumper youtube ads that marketers can easily use. These ads are non-skippable. The length of bumper ads is 6 seconds.

These ads play before a viewer’s selected video. Advertisers also pay for bumper ads on a CPM basis like non-skippable youtube ads.

As a part of a larger youtube advertising campaign, many brands use them. For stories, testimonials, or product demos bumper ads are not an ideal format.

But for creativity, a 6 second time limit can be a wonderful catalyst.

What is a YouTube Sponsored Card Ad?

YouTube Sponsored Card Ad

Youtube recently launched a new ad format called Sponsored cards. These cards display content that is related to your video like the product that you promote in the video.

Within small videos like call-to-action popups, youtube sponsored cards appear. It is a very unobtrusive form of Youtube advertising.

For a few seconds, viewers will see a teaser of a card in the video. The card expands when you click on the small “i” symbol in the upper right-hand corner of a video.

To receive the benefits of youtube sponsored cards you do not need to do anything. Because youtube automatically enables cards for you on the monetized videos.

Through google shopping youtube sponsored cards can display products. Other youtube videos can also be displayed by sponsored cards.

To create a shopping campaign using cards Google gives you a handy guide to help you.

This is probably the new way for right holders to generate extra income and now it is also available on mobile. Around 50% of all the views come from the mobile phone audience.

What is a YouTube Overlay Ad?

YouTube Overlay Ad

The simplest form of youtube ads is an Overlay ad. Along the bottom of videos, these banner ads appear. You can check Google’s helpful guide to know more information about Youtube overlay ads.

This ad is a small semi-transparent overlay across the top or the bottom third of the video.

Usually, it appears as a static message or text. With the help of overlay ads. advertisers get the opportunity to place traditional advertising banner inside a streaming video.

Benefits of an Overlay Ad:

For small business owners, overlay ads prove to be very useful in promoting their businesses. These ads are very cheap and easy to create.

Also, to reach audiences overlays provide an affordable less intrusive. With the help of overlay, the ad audience gets the requested content in a short period without making them wait for a long time.

They can be easily integrated into any online marketing campaign whether they are graphic based or text-based.

You need to make a simple or clear overlay ad but make sure that it is memorable and effective so that it can grab many people’s attention in your target market.

Designing plays an important role in promoting any business so keep your point simple.

Moreover, the overlay ad format helps you a lot:


  • To increase the daily traffic of a company website.
  • In promoting a specific service or product.
  • To increase brand recognition.

What is a YouTube Display Ad?

YouTube Display Ad

First, you should know that it is Google Ads that are used for YouTube Advertising. Now, it is a method to advertise video content on search results or YouTube.

In simple terms, this helps to maximize the user reach.

So next time you open YouTube, it can be your video up there. Or it can be in the search results of YouTube for others to view it. All you need is the right tool and some handy tips to ace this.

Types of YouTube Ads:

Below are the 6 types of YouTube ads that you need to know off.


  • TrueView ads.
  • Non-skippable instream ads.
  • Bumper instream ads.
  • Sponsored card ads.
  • Overlay ads.
  • Display ads.

For creating a campaign, especially if it is the first one, you must know of these types. Only then you would be able to pick the one that best fits your plan.

How to Advertise On YouTube?

Advertise On YouTube

Now, this method of advertising can vary depending on the expectancy level of each person. Either you want to use YouTube Ads for sales growth, brand awareness. Or to boost brand loyalty, influence the buying decision, etc.

Here are the basic ways one can use to drive these objectives on YouTube by video ads.

1- Sales Growth:

For growing your sales to the next level, diversify to similar audiences. It should be the audience that was not targeted before and test out your new tactics.

Apart from that research is also a way to link the products to the audience and grow sales.

2- Build Brand Awareness:

The easiest way to build brand awareness is by introducing the product to people who are not aware of it. Or those who don’t know much about the product yet.

Also, target the known audience with similar interests in the products. Hence you will get to know more about their correspondence.

3- Boost Brand Loyalty:

People tend to learn from other people’s experiences and tend to follow them. So the best approach here is to indulge the clients in talking about your products.

Let the videos manifest the prospects, specs provided by you. So the viewers know more about the best services and products.

4- Influence the Buyer Decision:

The real deal is to convert a viewer into a potential customer and videos can help you in that. If you showcase how your products are the best out there.

Or why should people indulge in buying your services, etc? Such evidence is like the backbone of your YouTube Ads and influences the final decision.

How to Create Your First YouTube Advertising Campaign: (Steps)

Create Your First YouTube Advertising Campaign

For starting up your own YouTube Ads campaign you need a few things. First, you need to create your image, video, and a relevant ad copy.

YouTube Ads leaderboard provides a rundown of the best YouTube Ads. So check out this leaderboard to create powerful YouTube video ads.

Now, let’s take a look at the step required to follow up for creating YouTube Ad Campaign.

Step 1: Upload Your Video Advertisement to YouTube:

The best approach is to upload the marketing video beforehand to the YouTube account. And then start with configuring the ad campaign.

When you will log in to the YouTube account, look for a small camcorder icon on the top-right corner.

Click on this icon of YouTube and next click the Upload Video option. This will ultimately take you to the upload window.

Here select any file you want to upload but also fill in all the required info like tags and title.

Step 2: Create a New Campaign in Google Ads:

After uploading the video on your YouTube account, you are all set to start. So to begin the YouTube Ads Campaign, go to Google Ads account.

If you don’t have an account already, you will need it beforehand. Log in to the account and click on the All campaign option in the left-hand sidebar.

Next, click on the large blue + icon, this will create a new campaign. It takes you to a window so you can select a campaign type. Right now, Google offers these 5 options:

  1. Search
  2. Display
  3. Shopping
  4. Video
  5. Universal App

Select a single goal once you clicked the Video so it corresponds to the goal you have set. Hence you would be able to achieve the target via your campaign.

Here’s the deal!

The Website traffic goal is the option in case you want to increase the number of visitors to the website. With time and as the campaign sets up there would be more recommended features.

Also, there would be settings to help you with generating more views on the website.

You can also hove the mouse over goal option to get further information. It allows you to remove or add a goal whenever required. Or can create a campaign if you prefer, without seeing a goal’s recommendations.

Step 3: Configure Your Campaign:

Next comes the configuration part of the campaign, here are the things to follow:

Choose a Name:

Choose a name that best describes the campaign as it is for internal use. This helps in easy identification of the campaign. When starting to run multiple campaigns in Google Ads.

Set Your Budget:

There has to be a set limit that you should spend each day and not exceed it. Take a start with a minimal amount at the beginning so you can take your time.

It helps you to refine and test the campaign to ensure that you get the highest return on investments. Moreover, you have an option to choose either accelerated or standard delivery method.

With the standard option, the budget spreads throughout the day only. Whereas accelerated one lets you see ads at each available opportunity. But the chances of you running out of budget faster are high.

Choose Your Start and End Dates:

This one is pretty simple, just put in a start date and an end date (if you want to).

Select Your Networks:

Now, with YouTube Ads Campaign you get to opt for where you want the ads to appear. Here you will get 3 options to choose from as it is a video ad.

  • YouTube search results allow ads to appear next to YouTube search results.
  • YouTube videos: allow ads to appear on channel pages, videos, and homepage of YouTube
  • Video partners on the display network: lets ads to appear across Google’s ads options.

Select a Language and Location:

The language in which the ad will appear and the country are your choices to make.

Select Your Bidding Strategy:

Next, comes the payment part for the campaign, and Google Ads offers these 4 options.

  • Maximum CPV (cost-per-view): based on the number of views and interaction receives on a video.
  • Maximum CPM (cost-per-mille): based on every thousand impressions ad receives.
  • Viewable CPM (cost-per-mille or vCPM): when ads are seen, charges per thousand impressions.
  • Target CPA (cost-per-acquisition): based on actions like clicking on ads by viewers.

Choose an Inventory Type:

With this option, you can show the ads only on the inline of that content with your brand. The plus point is there won’t be any sort of inappropriate content shown.

Exclude Content:

Unlike the previous option, this section allows you to go into a bit of depth. It averts any sort of sensitive content categories to appear the content in.

For instance. “Sensitive social issues” or “Tragedy and conflict”. This step is, in fact, a must to follow otherwise you may face a disaster.

Step 4: Select the People You Want to Reach:

Once you are all done with the above-listed steps, comes another vital part. Now, you need to give the ad group a descriptive name before selecting the audience.

This allows you to maintain a pace with the same audience in the future as was in previous ads.

Select Your Demographic:

To hone in the target audience, you need to select the demographics. With the ads, you can reach audiences anywhere around the globe. It can be any gender, parental status, and age.

Hone in on Your Target Audience:

With the help of options provided by Google Ads, you can find any target market.

Step 5: Select Your Marketing Video:

At last, you can use the search bar to look for the marketing video. Click on the link to upload the video on YouTube if you already haven’t done so.

So when it gets uploaded and appears, select by clicking on it.

Step 6: Configure Your YouTube Ads Video Ad:

Now, the final step is to select the video format so always add CTA, URLs, and headline. Based on the campaign selections you made, the ads will show you available options.

What are the Benefits of YouTube Advertising?

YouTube Advertising

For those with drop-shipping as the core business, YouTube Ads and cost can be daunting. Also, if you hold any small company the cost won’t be pleasing to you.

Here’s the deal!

You simply don’t have enough capital to invest in there. But with YouTube Ads the focus shifts to a whole different content format. It brings along a varying method to engage with people.

So YouTube Ads is the best revenue-generating platform for many of you. Especially for those with an audience engaged in video content.

1- Reach:

Being a platform with over 1 billion users across the globe. YouTube brings you distinctive 1 billion visits every month. When YouTube Ads are highly engaged, these hold the potential to reach the masses.

2- Targeting:

YouTube is a part of Google’s world, also it is the only rival to Facebook in regards to knowledge.

Hence you can target the right people with knowledge of their preferences/interests. But remember not to over-optimize the target audience and keep the reach to a limit.

3- Users:

Visitors would check your website, some might show interest in your products. If a person does hold interest that you should take a step. Rather than waiting for them to build a relation with them.

If people visit your website, remarketing can help you as a part of Google suite. You can target the audience with ads and lead them back to the website. This helps to build their interest and trust so your sales can grow.

4- Flexibility:

YouTube Ads offer great flexibility as it is under constant change but not static. So you have the option to change your ads anytime you feel like.

From changing the ad schedule to targeting, and even ad copy. This allows you to get the most out of YouTube Ads but within a budget. Just like the audience keep evolving your YouTube Ads with time.

5- Data:

One of the best things about YouTube Ads is the report received during the campaigns. These provide detailed info not only about the ads that you put. But also about the people/users who interacted with the ads.

Hence this provides an opportunity to interact with the audience. You get to know about their interests, about the content they enjoyed before buying it.

Also, the Analytics accounts linked with Google Ads prove to be more informative.


If you follow the above-mentioned steps only, you can also understand the YouTube Ads.

In fact, you can create your first-ever ad campaign and get started.

For further details and queries, contact us, and clear the doubts.


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