The Ultimate Guide to YouTube Ads in 2024

Skippable In-Stream Ads

These ads play before, during, or after other videos on YouTube. Viewers get the option to skip the ad after 5 seconds. Since these ads are skippable, the first 5 seconds of your ad content really needs to grab attention and engage the viewer to keep them watching.

Non-Skippable In-Stream Ads

Just like skippable ads, these also play before, during, or after videos. But the twist is, viewers can't skip these ads. They're 15 seconds or shorter by default, but can be up to 20 seconds long if enabled by a Google account manager. These ads make sure your whole message gets seen, which is perfect for sharing something really important or exciting about your business.

In Feed Ads

Previously called “Discovery Ads,” these ads show up in YouTube search results, next to related videos, or on the homepage. They look more like regular videos and have a thumbnail image with some text, inviting people to click and watch. These are great for drawing people in who are looking for something like what you offer. In-feed ads are great for building brand affinity and taking users behind the scenes of your business. 

Bumper Ads

Bumper ads are super short, 6-second, non-skippable ads. They're good for making a quick, memorable statement about your brand. Because they're so short, they work well to remind people about your products or services. Bumper ads are great for building reach and awareness, keeping your brand in the front of your audiences’ mind.

Trueview For Action Ads

Augmented for Conversion (Bottom of the funnel) activity, Trueview for action (TV4A) is a 15-30s format which is best used to deliver a call to action message, which in 2024 can even include a push users to subscribe to your YouTube Channel directly (TV4A Engagements campaign). TV4A enables you to convert your YouTube presence and influence into tangible sales and other chosen conversion goals. 

Masthead Ads

These ads appear at the top of YouTube's homepage and are the first thing people see when they log on. They can play automatically without sound for up to 30 seconds. These are the big guns, used when you want to make a huge impact and reach lots of people all at once. Think launch events, for example. 

Each of these ad types has its own benefits. Skippable In-stream ads are cheap and allow you to share your message whilst giving the audience a choice whether they want to keep watching or not. Non-skippable ads make sure your whole message gets heard. In-feed ads help you build consideration in those who are already aware of your brand, building brand love and affinity.  Bumper ads are great for quick reminders, Trueview for action ads spur your audience into action, and masthead ads get you lots of attention fast.

When you're thinking about which ads to use, consider what you want to achieve and who you want to reach. Each ad type can help you in different ways, so mixing and matching them can be a smart strategy.

YouTube Shorts Ads

YouTube Shorts ads are an opportunity to take advantage of the world of short-form video content, capitalising on the trend that caters to quick, engaging viewer experiences. 

These ads are succinct, usually not exceeding 60 seconds, and are in a vertical format ideal for mobile consumption. This format aligns with today’s mobile-first audience's preference for fast-paced, digestible content, offering a fresh, dynamic avenue for brands to capture attention.

The introduction of Shorts ads on YouTube provides significant benefits for advertisers, especially those aiming to tap into a younger demographic that values quick and captivating content. 

The vertical, brief nature of these ads boosts brand visibility among an engaged audience and also encourages immediate action due to their compelling, straightforward messaging. 

However, it’s important to note that Shorts is a placement rather than an ad type on YouTube. There is currently no way to guarantee you will serve solely in the Shorts placement. But a good rule of thumb is to set up an In-stream or TV4A ad and select “Mobile Only” as a device category. This enables you to ensure you get a portion deliver as shorts

As part of a broader YouTube advertising strategy, Shorts ads offer a unique opportunity to connect with viewers through creative, impactful content that resonates within the fast-scrolling environment of today's social media landscape.

Setting Up YouTube Ads

Setting up YouTube ads is like putting up a digital billboard where you know it'll be seen by people interested in what you offer (note: you’ll need a Google Ads account before you start this process) Here's a simple guide to get you started:

• Link Your YouTube Channel to Google Ads

First, you need to connect your YouTube channel with Google Ads. This allows you to see the earned metrics as a result of your campaigns and use the existing YouTube channel viewers/subscribers in audience remarketing. Go to your Google Ads account, find the "Tools & Settings" menu, and look for the "Linked Accounts"/ “Data Manager” option. Here, you'll find YouTube and can follow the steps to link your account. (Be aware that linking multiple channels to the same ad account will lead to inflated Earned metrics so if you want to run campaigns for multiple YouTube channels you will need to make additional ad accounts to avoid a skew in earned metrics).

• Choose Your Ad Format: 

Think about what type of ad you want to create. Is it a skippable ad, a non-skippable ad, an In-Feed (Discovery) ad, a bumper ad, a trueview for action ad, or a masthead ad? Your choice should depend on your goal, like getting more views, spreading the word about a new product, sales or something else.

• Create Your Video Content: 

Now, make your ad. The video should grab attention in the first few seconds, clearly show what you're offering, and tell viewers what you want them to do next, like visit a website or buy a product. Be creative and make sure your message is clear.

Quick Tips for Effective Video Ads

If you’re new to video ads, here are some quick pointers to get you started:

• Start Strong: Your video needs a strong start. Catch viewers' attention in the first 3-5 seconds. Use something surprising, interesting, or funny to make them want to keep watching.
• Keep It Clear and Simple: Your message should be easy to understand. Don't pack too much into one ad; focus on one main idea or action you want viewers to take.
• Call to Action: Be clear about what you want viewers to do after watching your ad. Whether it's visiting your website, signing up for more information, or buying a product, make your call to action (CTA) stand out.
• Dead Zones: Be aware of areas of the screen within your Ad creative that will be covered by buttons, ad text, or your call to action.
• Use Templates or Professionals: If you're new to making ads, consider using customizable templates that many online tools offer. They can help you create a professional-looking ad without needing a lot of video editing skills. Or, you could hire a professional service to make the ad for you, ensuring high quality and effectiveness.

Creating compelling video content isn’t just a “nice to have”—it’s crucial for converting viewers into engaged audience members. Keep your target audience in mind and what they would find engaging or persuasive. A well-thought-out ad can make a big difference in your campaign's success.

YouTube Ads Targeting and Audience Selection

Picking the right audience for your YouTube ads is like choosing the right guests for a party. You want people who'll enjoy it and talk about it afterwards. Here's how you can find those people:

Use Demographics

Starting your YouTube ad campaign with caution is crucial to its success. It's important not to narrow your target audience too soon or make assumptions about who they are. Instead, focus on casting a wide net initially to gather valuable insights about your engaged viewers.

By beginning with a broad approach, you have the opportunity to collect data and observe which demographics show the most interest in your ads. This initial phase allows you to refine your targeting strategy gradually based on real audience engagement, rather than relying on assumptions.

Once you have gathered insights about your engaged audience, you can then strategically narrow down your targeting using demographics. Consider fundamental characteristics such as age, gender, and geographic location to ensure your ads are reaching the right viewers.

By carefully selecting demographics based on actual engagement data, you can maximise the efficiency and effectiveness of your ad spend. This targeted approach increases the likelihood of engagement and conversion, ultimately optimising your marketing efforts for success.

Look at Interests and Behaviours

When you focus on interests and behaviours, you're tapping into the heart of what makes your potential customers tick. YouTube categorises user interests into broad areas that reflect what content they consume and interact with on the platform. 

Genres

This could range from genres like comedy, music, and sports to more specific niches such as tech enthusiasts, fashion gurus, or fitness aficionados. By aligning your ads with these interest categories, you're more likely to engage viewers who are genuinely interested in topics related to your product or service.

Behaviours

Behavioural targeting takes this a step further by analysing actions users take online. This includes videos they watch, comments they leave, and their search queries on YouTube and Google. 

Insights like these can reveal not just what users like, but also their intent. For example, someone frequently watching how-to videos on home renovations might be in the market for tools and materials.

Life-Event Targeting

YouTube also allows for life-event targeting, recognizing when users are undergoing significant life changes, such as moving to a new home, graduating, or getting married. These events often come with specific needs and purchasing behaviours, making them opportune moments for relevant ads.

Purchase Intent

Lastly, YouTube's capability to target based on purchase intent is especially powerful for advertisers. By identifying users who are actively researching products or comparing options, YouTube enables you to present your ad at a critical decision-making juncture, potentially swaying their purchase decision in your favour.

Affinity Audiences

Affinity Audiences are groups of YouTube users who share common interests, making it easier for you to target people who are likely to enjoy what you're offering. For instance, if you have a new fitness app, targeting an Affinity Audience of fitness enthusiasts means your ads reach people who are already interested in staying active and healthy.

This method works by tapping into YouTube's insights about what users watch and engage with, allowing you to connect your ads with an audience that's already proven to be interested. It's a smart way to ensure your ads don't just reach a lot of people, but the right people – those who are more likely to be interested in your fitness app.

By choosing Affinity Audiences, you make your ads more relevant and engaging to viewers who have a genuine interest in fitness, increasing the chances that they'll want to learn more about your app. This focused approach helps your advertising efforts go further, connecting your product with an audience that's poised to take interest.

In-Market Audiences

In-Market Audiences are a powerful targeting tool on YouTube that allows you to connect with users who are actively in the market to make a purchase. This feature identifies potential customers based on their recent search history and online behaviours, indicating a strong intent to buy.

For example, if your business specialises in kitchen gadgets, In-Market Audiences lets you specifically target individuals who are currently searching for or showing interest in kitchen tools. These users might be comparing prices, reading reviews, or watching product demonstrations, signalling that they're closer to making a purchase decision.

By targeting In-Market Audiences, your ads are placed in front of users who have already expressed a clear interest in products similar to what you offer, making them more likely to engage with your ad and consider your products. This strategic approach ensures that your advertising efforts are focused on highly relevant leads, increasing the efficiency of your campaigns and improving the chances of conversion.

Remarketing

Remarketing is a strategic approach in YouTube advertising that allows you to reconnect with individuals who have previously interacted with your website or YouTube channel. This technique involves displaying your ads to these users as they continue to browse YouTube and other websites, serving as a reminder of your brand or offerings.

For instance, if someone visited your website to look at a product but didn't make a purchase, remarketing helps you keep your brand top-of-mind by showing relevant ads during their future online activities. This could encourage them to revisit your site and potentially complete a purchase or engage further with your content.

This method is particularly effective because it targets people who have already shown interest in what you have to offer, making them more likely to respond positively to your ads. By strategically reminding them of your products or services, you can increase the likelihood of converting these past visitors into customers.

Combined Segments

Combined Segments in YouTube advertising allow for an even more refined approach to targeting by blending different audience characteristics and behaviours. This advanced feature lets you create a highly specific audience for your ads by combining factors like demographics, interests, purchase intent, and more.

For example, if you're aiming to reach young parents living in urban areas who are in the market for a new car, Combined Segments let you tailor your audience precisely to these criteria. By layering these segments, you ensure that your ads are shown to individuals who not only fit the demographic profile of young parents but also live in large cities and have shown behaviour indicating they're looking to purchase a car.

This tailored targeting approach maximises the relevance of your ads, significantly increasing the chances of engagement. When your ad content aligns closely with the specific needs and interests of your audience, it resonates more deeply, making your advertising efforts more effective and efficient.

Keywords

Targeting those who searched Google or YouTube for certain subjects, you can go quite broad here to create an audience, this strategy is great for bringing in users for the first time who may not be aware of your brand yet

Topics

Targeting those who are contextually watching content on YouTube right now that aligns with your chosen topic categories, using topics makes sure your product/service appears at the right time. Imagine your advert for a new car showing up when your audience start watching their favourite automotive YouTuber, this approach reduces banner blindness and so can yield great results.

Custom Segments

By using custom search terms or interests you can create your own segments to target users who match your business more specifically. Offering you a choice of making the segment ‘Interests’ (Behavioural relevance) or ‘Search Terms’ (Contextual Relevance). These in particular are great for conversion goals due to their ability to be specific about who you are looking to target whilst not sacrificing too much in scale.

Budgeting and Bidding Strategies for YouTube Ads

When it comes to YouTube ads, how much you spend and how you spend it matters a lot. Let's break down how to set your budget and pick the right bidding strategy for your ads.

Setting Your Budget

First things first, you need to decide how much you want to spend on your YouTube ads. You can set a daily budget, which is the average amount you're willing to spend each day, or a campaign budget, which is the total amount you're willing to spend for the entire ad campaign. It's like deciding whether you want to spend a certain amount every day on coffee or setting aside a coffee budget for the whole month.

Choosing Your Bidding Strategy

There are a few different ways to bid on YouTube ads, and each one suits different campaign goals:

• Cost Per View (CPV): With CPV, you pay when someone watches your ad for at least 30 seconds or interacts with it, like clicking on a call-to-action. It's great if you want to make sure people are really paying attention to your ads.
• Cost Per Click (CPC): CPC means you pay when someone clicks on your ad. This is a good choice if your main goal is to get people to visit your website or landing page.
• Cost Per Acquisition (CPA): CPA means you pay when someone converts. You have a choice of Maximise Conversions or Target CPA (Conversions at a set price only). This is a good choice if you have a bottom-of-funnel goal you’re looking to achieve like Sales, Leads or a specific website action
• Cost Per Mille (CPM): CPM stands for cost per mille (thousand impressions). This means you pay based on how many times your ad is shown, not on clicks or views. It's ideal for building brand awareness, getting your name out there to as many people as possible.

Choosing the right strategy depends on what you want to achieve with your ads. If you're all about getting views or interactions, CPV might be the way to go. If you're focused on driving traffic to your site, consider CPC. If you want Sales, focus on CPA,  if you just want to boost your brand's visibility, CPM could be your best bet.

Crafting a Compelling Creative Strategy

Making a great YouTube ad is a lot like telling a good story. It needs to grab people's attention right from the start and make them want to see more. Here's how to do that:

Hook Viewers Fast

The beginning of your ad is super important. You've got just a few seconds to catch someone's interest before they decide to skip your ad or keep watching. Start with something that makes people curious, like an interesting question, a surprising fact, or a funny moment. This is your hook that pulls viewers in.

Tell a Great Story

Once you have their attention, keep them interested with a good story. This could be about how your product was made, how it can solve a problem, or how someone's life got better because they used it. Stories make your ad memorable and help people connect with what you're selling.

Show Your Brand

Make sure people know who's telling the story. Use your brand's colours, logo, and style so viewers will remember your ad when they see your products later. Try to also keep your creative style consistent, especially for ads grouped into a single campaign to further boost recognition.

Use a Clear Call-to-Action (CTA)

End your ad by telling viewers exactly what you want them to do next. This could be visiting your website, signing up for more info, or buying your product. Make your CTA clear and easy to follow. Think of it as the last step in your story where you invite the viewer to be part of the adventure.

Creating a compelling YouTube ad is about catching attention quickly, sharing a great story, making sure your brand shines, and ending with a clear invitation for viewers to take the next step. Do this right, and your ad won't just be watched; it'll make people want to act.

Tailor Content for YouTube

YouTube isn't just any platform; it's a place where people come to be entertained, learn new things, and dive deep into their interests. 

Keep in mind that people come to YouTube for entertainment. Even if your ad is about a serious topic, try to present it in an engaging way. This could mean using humour, stunning visuals, and compelling stories that resonate with the YouTube audience.

Many users turn to YouTube to learn something new. If your product or service can be demonstrated or explained, consider making your ad educational. Show how it works, share tips, or teach something related to your industry that adds value to the viewer's day.

Take advantage of YouTube's features like end screens and cards to add interactive elements to your ad. These can direct viewers to more of your content, your website, or even a product page, making your ad an interactive experience.

Measuring and Analysing Ad Performance

After your YouTube ads are up and running, it's important to check how they're doing. YouTube Analytics is like a report card for your ads. It shows you what's working and what's not. Here's a look at what you should keep an eye on:

Key Metrics to Track

• View Count: This tells you how many times your ad has been watched. It's a good way to see how much attention your ad is getting.
• View Rate: For In-feed specifically, your ads appear as thumbnails with ad copy, comparing view rates of ads can therefore enable you to compare how good your copy iterations are in getting users to click to watch. For context, it’s good to test up to 5 copy iterations in any ad group. 
• Engagement Rates: Your YT ad engagement rate is calculated based on someone viewing for 10 seconds or longer. In contrast, Views are only counted for In-Feed ads when someone watches for 30 seconds or longer. So your engagement rate can often appear higher than your views total metric.
• 75th Quartile Retention: By optimising for best 75th quartile retention you are prioritising quality viewing, due to end cards 100% (video completion) is rarely achieved whereas those who have made it to the 75th quartile have shown significant engagement. Prioritising this helps build your community on YouTube by prioritising engaged fans.
• Conversion Metrics: This shows whether people are taking the action you want after watching your ad, like visiting your website or buying something. It helps you see if your ad is really working to meet your goals.

Tips for Using Analytics

• Check Regularly: Make it a habit to look at your ad performance often. This way, you can catch any issues early and make changes if needed.
• Compare and Learn: Look at how different ads perform against each other. What makes the better-performing ads work? Use what you learn to make your next ads even better.
• Adjust as Needed: If something in your ad isn't working, don't be afraid to change it. Maybe you need a stronger call to action or a different opening scene. Small changes can make a big difference. But don’t make too many changes too quicking, avoid making more than one change a week.
• Set Clear Goals: Know what you want your ad to achieve. This makes it easier to see if you're hitting your targets and getting a good return on your investment (ROI).

Advanced YouTube Advertising Strategies

Once you've got the basics down, it's time to step up your YouTube ad game. Here are some advanced strategies to make your ads even more powerful:

Sequenced Messaging

Think of this like telling a story across several ads. Start with an ad that introduces your product. Then, follow up with more ads that build on that story, showing more about how the product works or how it can make the viewer's life better. This keeps viewers interested and helps them remember your brand.

Interactive Elements

Adding interactive parts to your ads, like YouTube cards, can make them more engaging. These are little pop-ups in the ad that can link to your website, more videos, or even a place to buy your product right away. It's like giving viewers a way to learn more or take action without having to leave the video they're watching.

Integrating with Broader Campaigns

Don't just think of your YouTube ads as standalone pieces. They should be part of your bigger marketing plan. Make sure your message on YouTube matches what you're saying in your other ads, like on social media or your website. This creates a consistent story about your brand no matter where people see your ads.

By using these advanced strategies, you can create YouTube ads that not only grab attention but also keep viewers coming back for more, interact with your content, and fit perfectly into your overall marketing efforts. This can lead to better results and a stronger connection with your audience.

Future YouTube Ads Trends

The world of YouTube advertising is always changing, so it's crucial to keep testing and learning. Try out different ad formats, targeting options, and creative strategies to see what works best for your brand. Use YouTube Analytics to track your performance and make data-driven decisions. This ongoing process will help you refine your approach and improve your results over time.

Looking to the future, we can expect several digital trends to shape YouTube advertising:

Greater Interactivity

Expect to see more ads that invite viewer interaction, whether through clickable elements, augmented reality experiences, or other engaging features.

AI Targeting

Use of AI in algorithms has been commonplace for a while but in the last 12 months we’ve seen a movement by the major platforms towards limiting targeting options, not to make it harder to reach your audience but to broaden our targeting approach, thought as to why is due to the pending cookie-less future in the post-GDPR world, but what AI does here is quite clever, it identifies who within your target audience engages and then through functions like Audience expansion (Google), Performance max (Google) & Advantage+ (Meta) finds others who share a high proportion of interests, behaviours and searches with the hopes they might too convert for you at a cheaper cost rate than complex segments. We’d expect this to continue to slim down over the next 18 months.

Integration with Other Platforms

YouTube ads will become more integrated with other digital platforms, providing a seamless experience for consumers across the web. We’re already seeing this with the likes of Performance Max; a product which allows you to upload assets in the same campaign for YouTube, Paid Search, Gmail, Discover and Display.

Focus on Mobile & Connected TV

With more people watching videos on their phones, mobile-friendly ads will become even more important. This means creating content that looks great and works well on smaller screens.

Further, nearly 26% of all CTV viewing in the US last year (even more than Netflix) was on YouTube, making it a crucial placement for brands. With data suggesting a strong trend towards co-viewing at home, essentially targeting this placement allows you to position yourself to multiple decision makers in the home with one ad, potentially starting a conversation which may lead to a purchase.

Realise the Potential in Your YouTube Story

At Little Dot Studios, we’ve worked with the world’s biggest brands, broadcasters, and sports rights holders to bring their stories to life on YouTube. We’ve generated millions of views and taken our client’s audience growth and engagement to new heights. 

Learn more about our YouTube expertise and chat with the team to start your story. Get in touch today!