YouTube Ads for Business Growth: The Basics

Video advertising is one of the biggest trends right now, and for a good reason: it’s engaging, memorable, often more impactful than image or text ads, and provides an opportunity to tell your brand’s story effectively thanks to the nature of the medium.

 

As YouTube is one of the most popular video platforms in the world, advertising there has numerous benefits for all types of businesses, whether we’re talking about B2C or B2B ones.

 

In this article, we’ll talk about the basics of YouTube advertising, the ad formats you can use, and how to create effective YouTube ads to achieve your advertising goals.

 

What is YouTube advertising and why should you use it?

Imagine you're watching a cooking video on YouTube. Before it starts, you’ll probably see a quick ad showing a new kitchen tool that you can skip. Then, as you browse more cooking videos, you see ads for kitchen gadgets alongside the video suggestions. These ads are there to grab your attention and make you want to find out more or buy something related to what you're watching, fitting right into your YouTube experience.

 

That’s what YouTube advertising is, in a nutshell: promoting your products and services to people who are watching something related to what you’re offering. And as we’re talking about video ads, there’s a higher chance that users will remember your business and become interested in it.

 

Now, let’s get more specific and consider the benefits of running your ads on YouTube.

 

1. A huge and active audience

At the moment, YouTube has more than 900 million users worldwide, and this number is only going to grow in the future. YouTube also takes up the most overall time spent among the top social media platforms, with an average YouTube user spending around 28 hours on the platform each month.

 

Basically, this means that you can advertise your business to a wide and international audience, reaping the benefits of increased exposure.

 

When it comes to the demographics of YouTube’s userbase, more men watch YouTube (around 54%) than women (around 46%). The most active age group on the platform consists of people between 25 and 34 years old. If your target audience leans younger, you should definitely consider adding YouTube to the mix of platforms you’re running ads on.

 

In short, YouTube is a good place for advertising: it has a pretty impressive userbase, people spend a lot of time there, and you can show your ads to specific groups of people (like younger people or men).

 

2. Better advertising results

YouTube ads are incredibly effective not just because of the platform’s large userbase, but also because you can grab viewers' attention with engaging video content.

 

Videos can tell compelling stories, demonstrate how products work, or entertain, making them more memorable. This helps to increase brand awareness, web traffic, leads, and sales – what’s there not to like about video content?

 

That’s why the majority of businesses use video as a marketing and advertising tool, preferring YouTube as the primary platform to do so since it delivers a good ROI.

 

3. Multiple targeting options

YouTube offers many ways to make sure your ads reach the right people. You can choose who sees your ads based on things like their age, gender, where they live, what they're interested in, how they interacted with your business in the past, and a lot more.

 

So, no matter what you’re advertising, you can be sure that your ads are shown to people who are likely to be interested in what you offer.

 

4. Various ad formats

The greatest thing about advertising on YouTube is that video ads can come in different forms. Here are the main ad formats you can choose from:

 

TrueView (skippable) ads

TrueView ads are the ones you can skip after five seconds. You’ll only pay if someone watches for at least 30 seconds or interacts with your ad. These ads are great for telling a story or showing off your product in detail. They come in two main types:

• In-stream ads: they play before, during, or after other videos. Viewers can skip them after five seconds;

• Discovery (In-Feed) ads: they show up next to YouTube search results, alongside related videos, or on the YouTube homepage. Viewers click on them to watch.

Non-Skippable In-Stream ads

Non-skippable in-stream ads play before, during, or after a video and can’t be skipped. They are usually 15-20 seconds long. These ads are perfect for short, impactful messages because everyone has to watch the whole ad.

 

Bumper ads

Bumper ads are very short, just six seconds long, and play before a video. They can’t be skipped either. They are great for quick, memorable messages and building brand awareness in a short time.

 

YouTube Masthead ads

YouTube Masthead ads appear at the top of the YouTube homepage for 24 hours. These ads are highly visible and great for reaching a huge audience quickly. They’re often used for big launches or major announcements and include a video that auto-plays without sound for the first 30 seconds.

 

YouTube Shorts ads

YouTube Shorts ads are designed for short, vertical videos that appear in the YouTube Shorts feed. These ads are ideal for reaching people who love quick, engaging content on their mobile devices. They are usually 15 seconds or less and fit well with the fast-paced style of Shorts.

Display ads on YouTube

Display ads show up beside the video player on YouTube, on the homepage, or as banners in the app. These ads are useful for promoting your website or other content while people watch videos. They can include images, text, and a link to your site.

 

Each type of ad has its own advantages, so you can pick the ones that match your goals and budget. Using a variety of these ad formats helps you connect with different groups of people and meet your advertising goals effectively.

 

5. Performance tracking features

Since YouTube is owned by Google, it offers advanced tools and features to help you track how well your ads are doing. Here are the basic performance metrics for YouTube ads that you can pay attention to:

• Impressions show how many times the ad is displayed; Paid Views count how often people watch a significant part of the ad;
• Interactions and Engagements measure what viewers do beyond just watching;
• View Rate and CPV check how effective and cost-efficient the ad is, i.e. how many people who saw the ad actually watched it and how much you spend per each view;
• Video Played To metrics show how long viewers stay and watch your ad;
• Earned Actions show how viewers interact with your brand after seeing the ad;
• Viewability shows that the ad is actually visible to users and thus can be seen;
• Impression Share metrics show how visible the ad is compared to competitors;
• Brand Lift metrics give insights into how the ad affects brand perception.

You can also see which of your ad content tends to be more engaging, where users lose interest and skip your ads, whether your creatives follow the platform’s best practices, and so on.

 

This is super helpful for tweaking your content. If you notice that people stop watching your ad at a certain point or that certain creatives perform better than others, you can optimize your ads to get more attention for your business and maintain it for longer.

 

6. Works in tandem with Google Ads

If you're already running Google ads, adding YouTube ads to your strategy can be pretty simple. Everything can be managed from one place, making it easy to run ads across different placements.

 

By combining YouTube and Google ads, you get the best of both worlds, i.e. access to the advanced targeting options and tracking features we discussed earlier.

 

Managing your budget and bids is also easy: you can set your spending limits and how much you're willing to bid for views, just like you do with other Google ads.

 

In short, integrating YouTube with Google makes your advertising efforts more cohesive and effective, helping you save time on ad creation and management. Now, let’s talk about how to set up YouTube ads through your Google Ads account.

 

How to set up YouTube ads (with Google)

Getting started with YouTube ads is straightforward. Here’s how you can set everything up step by step:

 

1. Start a new campaign and choose your goal

Go to your Google Ads account, click the plus icon (“Create”), and choose "Campaign". Then, select your campaign goal: Sales, Leads, Website traffic, or Awareness and consideration. You’ll be able to choose video campaigns for these four goals. If you’re unsure about your goal, choose "Create a campaign without a goal's guidance".

 

2. Select Campaign Type and Subtype

Under "Select a campaign type", choose "Video". Then, under "Select a campaign subtype", choose a subtype based on your advertising goals (keep in mind that your options will depend on the goal you selected):

• Video Views: with this subtype, you can get more views and engagement from people interested in your products or brand, paying only when someone decides to watch your ad. You can use skippable in-stream, in-feed, or Shorts ads;
• Efficient Reach: you can reach the most people possible within your budget using bumper ads, skippable in-stream ads, in-feed ads, and Shorts;
• Target Frequency: you can show your ads multiple times to the same audience using skippable in-stream ads, non-skippable in-stream ads, or bumper ads;
• Non-skippable Reach: you can reach viewers with ads that cannot be skipped, lasting up to 15 seconds, in-stream;
• Drive Conversions: you can increase your sales by prompting valuable interactions with your business through video ads;
• Ad Sequence: you can tell a story by showing ads in a specific order to viewers. Use skippable in-stream ads, non-skippable in-stream ads, bumper ads, or a mix of these;
• Audio: you can connect with your audience on YouTube through audio-based ads while they're listening.

Choose the subtype wisely since this will affect how you’ll run and optimize your ads.

 

3. Set the budget and bidding strategy

Here, you need to choose how you’re going to spend money on your ads. Your budget will determine how frequently and prominently your ads appear, and your bidding strategy will control how your budget is used.

 

With your bid strategy, you can aim for views (CPV), impressions (CPM), conversions at a specific cost-per-action (CPA), or maximize conversions within your budget. For your budget, you can choose either a total or a daily budget, and this will affect how Google spends your money.

 

4. Choose whom and where to show your ads

At this step, you need to specify your target audience by location, language, and interests using campaign targeting options. Here, you can use Additional settings to refine targeting by device, frequency capping, or ad scheduling.

 

Then, you have to decide where your ads will appear: just on YouTube or on other platforms (like Google video partners on the Display Network and Google TV) as well.

 

You can also set content exclusion preferences to avoid displaying ads alongside sensitive content.

 

5. Create your ad groups

Next, you need to create ad groups to organize ads around common themes like product categories or audience demographics. This is useful if you want to tailor your ads for different groups of people based on who they are or what they are looking for on YouTube.

 

You can refine targeting further by adding keywords, topics, or placements relevant to your audience.

 

6. Create your YouTube ads

Finally, you have to create compelling YouTube ads with relevant headlines, calls-to-action, and eye-catching creatives. You can either use Google’s Asset library to create videos using templates or select videos already uploaded to your YouTube channel.

 

As you can see, the whole process is not as complicated or scary as it may seem initially. But how can you make sure that the ads you create will work and deliver the results you’re looking for? Let’s go through the best practices that can help you with that.

 

Top strategies for creating effective YouTube Video Ads

When you create YouTube video ads, you want them to grab attention and get your message across effectively. Here’s how you can make sure your ads stand out:

 

Use an attention-grabbing opening

The video’s beginning is responsible for the first impression people get and determines whether they’ll watch it till the end or skip it. This can help you achieve a good initial impression:

• Bright visuals: eye-catching images and vibrant colors make your ad pop on the screen. When people see something bright and engaging, it makes them curious to see more;
• Intriguing questions: asking relevant questions makes viewers think. For example, you can ask "Ever wondered how to..." or "Have you ever faced this problem?" to hook their attention and bring the focus to the specific problem they face;
• Surprising facts: you can share a surprising fact or statistic related to your product or service to catch people’s attention. When people hear something unexpected, they want to learn more, so they’re likely to watch your video till the end;
• Quick action: show something happening right away if you don’t want to lose attention too fast. You can show your product or introduce a scenario/situation quickly to pull viewers into your ad.

When you hook your viewers early on, they’re more likely to watch the rest of your ad and find out what you have to offer.

 

Include a matching Clear Call-to-Action (CTA)

A clear call-to-action (CTA) is crucial for your video ad since it tells viewers exactly what to do next. Here are some tips to make your CTA effective:

• Be direct: clearly state what you want viewers to do. For example, "Visit our website", "Subscribe to our channel", or "Buy now”;
• Use strong verbs: use action words that encourage people to take immediate action. Words like "Shop", "Discover", "Join" etc., can work really well;
• Make it stand out: highlight your CTA with bold text, bright colors, or a button that stands out to make it easy for viewers to see what you want them to do;
• Include a benefit: let viewers know what's in it for them. For example, something like "Get 20% off when you shop now" or "Subscribe for exclusive tips and deals" can help you convince even the most doubtful customers;
• Repeat the CTA: mention your CTA at the beginning and end of your ad. Repetition helps reinforce what you want viewers to do;
• Use visual cues: point to the CTA button or use arrows to draw attention to it in your video. Visual cues like these help you guide viewers to the action.

A convincing and clear CTA will help you turn user interest into action, whether it’s visiting your site, subscribing to your channel, or making a purchase.

 

Make your ads engaging through visuals and storytelling

Creating effective YouTube ads means using eye-catching visuals and telling compelling stories.

 

So, make sure your pictures and videos are clear and sharp so they grab people's attention. Use bright colors that stand out and show your product from different angles to keep things interesting. Adding animations or moving graphics can also make your ad more exciting.

 

It's also important to demonstrate how your product works in real-life situations, which is easy to do with storytelling. Stories are easier to remember than facts alone, and make your messages more believable than just listing specific benefits.

 

When you tell a good story, people stay interested and want to see how it turns out. But make sure that your story has a clear beginning, middle, and end: this way, viewers will stay interested and watch your ad fully.

 

Also, always keep your visuals consistent with your brand's style to help people recognize your business easily, and use the brand logo in the beginning and throughout your video ad to make it more memorable.

 

Optimize your ads for mobile viewing

Since a good portion of users watch YouTube on their phones, you need to make sure your ads look great on mobile screens. Here’s how to do it:

• Keep everything HQ: use sharp, clear images and videos with the highest quality. Blurry visuals can be hard to see on smaller screens;
• Use bold colors: use bright colors that stand out – they will catch people’s attention, even on a small screen;
• Make the text readable: make sure your text is big enough to read easily on a phone screen. Avoid small fonts that are hard to see, and keep your message brief and to the point since every word counts on mobile devices;
• Be straightforward: mnake sure your ad’s message is easy to understand at a glance, and avoid complicated ideas or long explanations. Try to grab attention fast with a clear benefit or message, and use captions to make sure people can understand your ads even without sound.

If you tailor your ads to not only desktop but also mobile devices, you’ll be able to reach more people on YouTube no matter how they watch your ads.

 

A/B test your ads for better results

A/B testing is the best way to figure out what works best for your YouTube ads.

 

Instead of guessing, A/B testing lets you try out different versions of your ad to see which one performs better. You can change things like the opening scene, visuals, or what you ask viewers to do – even small changes can make a big difference.

 

By running two versions of your ad at the same time, you can compare how well they do. Look at things like how long people watch it, how many click on it, and how much they interact with it. Once you see which version works better, you can make your ad even better.

 

Here are some tips for A/B testing:

• Start simple: test one element at a time to clearly see its impact. For example, test different headlines before moving on to visuals;
• Stay consistent: keep other variables constant to accurately measure the impact of the changes you’re testing;
• Use analytics: use data from YouTube Analytics to inform your decisions.

You can check out our article about A/B testing for more insights and tips.

 

In short, regularly testing your YouTube ads with A/B testing helps you keep improving. It’s a practical way to make sure your ads are effective and connect well with your audience based on their real feedback.

 

Leverage SEO practices for YouTube success

Using SEO (Search Engine Optimization) techniques for your YouTube ads can help you reach way more people.

 

How? Basically, SEO can boost your video’s visibility by helping it appear higher in YouTube search results and suggested videos. This exposes your ad to more people who are actively searching for what you offer, leading to more engagement and conversions.

 

Here’s how you can do it effectively:

• Start by researching keywords: you need to find search terms that people might use to find products or services like yours. Tools like Google Keyword Planner or YouTube’s keyword research tool can help with this;
• Use your main keywords: incorporate them in the title and description of your video. This will tell YouTube what your video is about and improve its chances of showing up in relevant searches;
• Use relevant tags: they should describe your content to help YouTube categorize your video and recommend it to users watching similar content.

To get the most out of SEO for your YouTube ads, avoid stuffing keywords: this will seem unnatural and push people away from your videos, which is the opposite of what you want.

 

Also, use YouTube Analytics to track how well your SEO efforts are performing and adjust your strategy based on which keywords are bringing in the most views and engagement.

 

Recap

YouTube advertising is a great way to catch people's attention and explain things clearly, and the best thing about it is how many people you can reach.

 

You can show your ads to people all over the world, targeting specific groups of people based on who they are, what they like to watch, or their online behaviors – this means your ads are more likely to reach the right users who could become your customers in the future.

 

Also, YouTube advertising is not just about reaching people but also connecting with them, helping your business find new leads and customers and increase brand awareness.