How to Use YouTube Ads to Grow Your Business

Are you tired of waiting for someone to find your videos?

With YouTube Ads, you can guarantee that people will find your content.

Running YouTube ads is one way to ensure your target audience finds the videos you worked hard to script, storyboard, shoot, and edit.

When you embed your videos on your website or share them on social media, that’s only a start.

YouTube Ads can put your content on the fast track, helping you reach people who haven’t discovered your channel yet but are likely to love your content. It’s about getting your brand seen and heard in the vast YouTube universe.

Can YouTube ads be tough to grasp?

Sure, at first. Luckily, once you get over that initial hurdle, YouTube ads offer some pretty unique marketing tools you can’t find anywhere else.

That’s why today, we’re taking a deep dive into the world of YouTube ads, from ad types to strategy. We’ll even walk you through creating your first one

The Types of YouTube Video Ads

If you’re unfamiliar with YouTube, their primary advertising format is known as the TrueView ad. Before I can understand the value of skippable in-stream ads, I need to take a closer look at YouTube’s TrueView ad approach.

Ever wondered why YouTube's TrueView ads are a game-changer in the world of online advertising?

TrueView ads were created to solve a massive problem. Before TrueView ads, users lacked any meaningful way to control their advertising experience. Without a way to meaningfully interact with the content, ads ran the risk of being both frustrating and irrelevant

YouTube was hoping to present itself as a valuable advertising platform, but its original approach to advertising severely limited the effectiveness and efficiency of brand marketing efforts. No brand wants to waste precious time and money selling to viewers who simply aren’t interested.

Here’s the simple explanation: Your brand only pays for TrueView Ads when viewers watch for at least 30 seconds, watch your entire video, or interact with your ad via call-to-action (CTA).

1. Skippable In-Stream Ads

The first variation of the TrueView ad is the skippable in-stream ad. At a minimum of 12 seconds and a maximum of six minutes, in-stream ads play before a viewer’s video on YouTube.

These ads feature a countdown timer on screen, as well as a link to the brand website. You can also tag on a companion banner ad, but it’s worth pointing out these companion banner ads won’t be on all YouTube pages where your in-stream ads are served.

Of course, the most important part of this variant is the option to skip the video ad after five seconds. If they choose to skip and don’t interact with your ad, you don’t have to pay a dime. Assuming you uploaded the video to your YouTube channel, once the viewer watches for 30 seconds, a view is attributed to your view count.

2. Video Discovery Ads

TrueView Discovery ads are promoted throughout YouTube, appearing as an image thumbnail with up to three lines of text. These ads function as an entirely optional way for viewers to consume your brand content.

Discovery ads are visible on the YouTube homepage, at the top of a viewer’s YouTube search results, and on the suggested videos list on their video’s watch page. The best part? Your brand doesn’t spend a dime on these ads unless viewers interact with them.

That’s what makes this advertising approach so useful to brands and marketers. TrueView ads work to protect both the viewer’s time and your brand’s money.

3. Non-Skippable In-Stream Ads

If the TrueView approach just doesn’t interest your brand, YouTube has plenty of other options. Non-skippable ads function a bit differently on this platform. They might look just like skippable ads on the surface, but you’ll be limited to a 15-second ad window for non-skippable ads.

Beyond that, you’ll be dealing with a cost per thousand (CPM) payment structure, forcing you to pay for every thousand views.

The only scenario where you’d want to use something like this is when you’re dealing with a proven target audience or when your brand is looking to maximize its reach. Otherwise,?there’s a strong chance you could waste time and money selling to the wrong prospects.

4. Bumper Ads

As you research YouTube ads, you’ll likely come across bumper ads and wonder what purpose they serve. What makes them different from the traditional non-skippable in-stream ad?

The most significant difference is the duration of your ad window. Instead of 20 seconds, bumper ads are expected to last less than six seconds.

Why would this distinction matter? Well, a viewer’s time and attention are valuable commodities. YouTube needs to protect their user experience, primarily by providing users with relevant information. YouTube limits these bumper ads to avoid frustrating viewers with non-skippable ads.

The key to making bumper ads work is creating something memorable. The format might not support long-form stories, but there are plenty of ways to portray your brand in five seconds.

5. Masthead Ads

Think of YouTube Masthead as YouTube’s premium advertising experience. Imagine your ad being the first thing viewers see whenever they use the platform. It’s a marketer’s dream come true, and with good reason.

Of course, there’s a reason you’ve never seen a small business on that masthead. hat premium experience comes with a premium price tag. At about $2 million per day, masthead ads are extremely expensive and far beyond the average brand’s marketing budget.

Think of these like Super Bowl ads: impressive reach and traffic, but not reasonable for most marketers. YouTube’s other advertising formats are more cost-effective, easier to experiment with, and generally more valuable to your brand’s marketing journey.

6. Overlay Ads

Overlay ads are a type of banner ad that hovers at the bottom of the video, as shown below. This type of ad is ideal for supplementing other in-stream video campaigns.

A banner ad helps to avoid advertising your product intrusively while still reaching your target audience.

Now that you‘re familiar with the types of ads you can run on the YouTube platform, let’s cover the nuts and bolts of launching a YouTube ad campaign.

What Makes YouTube Ads Unique?

With all the different variants and the added work of creating a compelling video ad, some marketers might wonder why they should use YouTube ads over social media ads. After all, that’s a ton of extra work when you could just make some simple visuals on Facebook ads.

While it’s certainly easier to make ads on social media, YouTube is a powerful tool for brands looking to promote high-quality video content to a massive audience. In fact, in a side-by-side comparison, an Agorapulse study found YouTube ads produced more views, more clicks, and higher conversions than Facebook Ads!

How to Decide Which Kind of YouTube Ad Is Right for Your Business

You’re ready to get started with your YouTube video ads. You’ve done all your audience and keyword research, and you know what the messaging should look like. Now you just need to pick an ad format.

When you’re first getting started, settling on a format to use can quickly become confusing. Should you use TrueView ads because you’re only charged per interaction? Are impressions more important or is traffic your only priority?

If you’re completely new to the world of YouTube ads, this breakdown of video ad formats by marketing objective exists to help you take that first step forward. Not to worry, your brand will start to identify what works well over time via testing and data collection.

• Brand Consideration: Video Discovery Ads

One of the most compelling reasons to experiment with discovery ads is their potential as a brand consideration tool.

Take advantage of Discovery Ads to maximize the potential of YouTube search they're more than just a brief commercial!

Instead of focusing on squeezing in a quick ad before someone else’s video, you can integrate your ad content into the YouTube search experience. This is where your keyword research can really shine. Create content that revolves around those low competition keywords with high volume.

When viewers click on your ad, they’ll be taken to your YouTube channel to watch that video. The goal here is less about CTAs and conversion and more about providing a closer look at your brand. If you have great instructional videos or interesting presentations, a discovery ad can work wonders for you.

• Brand Awareness: Non-Skippable Ads

For the sake of clarity, let’s define a few terms before I move on. Brand awareness is about maximizing visibility for your brand. Ideally, it lays the foundation for effective lead generation.

The main objective of lead generation is to both identify likely prospects quickly and offer properly defined metrics. Both lead generation and brand awareness are powerful tools when used correctly, but it’s vital you understand when to best use them.?

Think of brand awareness as the top of the marketing funnel, leading into quality lead generation.

If your primary marketing goal is casting a wide net, non-skippable ads can effectively raise awareness for your brand. These ads can appear pre-roll, mid-roll, or even post-roll. If you’re worried about placement, YouTube serves these ads whenever they believe viewers are most likely to watch.

• ?Lead Generation: TrueView In-Stream Ads

Maximizing brand awareness is great, but if you want to turn your traffic into interested prospects, you’ll need ad content that truly converts.

TrueView in-stream ads are perfect for this because they’re designed to be skippable. They introduce a level of reliability to the marketing experience. This potential prospect found the first five seconds of your ad compelling and was willing to stick around.

My favorite part? If a viewer doesn’t want to consume your content, they can just leave, at no cost to you. If the viewer does want to interact, they’ve now provided you with some very valuable information. They’re genuinely interested in your brand!

• Message Reinforcement: Bumper Ads

Let’s say you’ve already established an audience via digital media. You want to get a message out to them, maybe to announce your latest shoe release or phone launch. You need to maximize your budget, but you don’t really need to educate your target audience on the brand.

This is one of the scenarios where bumper ads perform well. The bumper ad doesn’t allow for much in terms of storytelling or education. What it can do is allow just enough time to hype up a new product or service.

• Reach: Masthead Ads

We’ve already established that Masthead ads aren’t for the average small business. While they may not be a cost-effective way to market your brand, they do highlight a lesson about ad budgets in marketing: specifically, the concept of ROI.

On the surface, spending millions of dollars on a single ad can seem ridiculous. What if the messaging doesn’t land perfectly?

What if you were wrong about the target audience’s pain points?

It seems like such a massive risk. Still, massive brands are doing this regularly.

Why?

Are you ready to go from being "hit or miss" with your marketing to being "spot-on every time"?

Well, consider how these massive brands approach marketing. With millions on the line, their latest marketing campaign is composed of detailed, layered strategy with one element at its center: data, and lots of it.

This data, likely collected over several years, confirms they’ll receive a positive ROI from this investment. Where small brands see risk, massive brands see growth opportunities.

Of course, it’s not like only massive brands are entitled to that level of confidence. The commitment to making data-driven decisions is what elevates any marketing strategy.

Masthead ads aren’t impressive because they’re expensive. They’re impressive because they show that with enough data, even the biggest risks become manageable.

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P.S Want to see how the reach of your content can rise with YouTube Ads?

If you’re still unsure about the Niche

Schedule a free consultation to discuss your vision and get expert tips. (Link mentioned in the featured section of profile)

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Hey, I'm Yousaf, your go-to YouTube Expert. Intrigued by finding your niche? Let’s make your channel stand out together.

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