YouTube advertising is serious. Why? Out of the 7 billion population of the earth, 2.6 billion people use YouTube! So it means one-third of the world’s population. More than 122 million check YouTube daily. So it’s time to begin YouTube advertising! What is youtube advertising? Why is it important? What are the types of YouTube advertising? How to calculate the cost? Stay with Smart Strategy until the end of the article to give your answers.


What is YouTube advertising?

YouTube advertising means: Showing ads on the YouTube video-based social platform to increase brand awareness, attract interested customers, and increase site traffic and sales.

YouTube allows businesses to reach a broad and diverse audience and is one of the best social network advertising platforms.

According to the available statistics, 32.4% of the world’s people are youtube users. The same statistic says that 70% of people buy a product after seeing its advertisement on YouTube.

On the other hand, you can find at least one video on YouTube about almost any topic. This is an excellent opportunity to display an ad related to the content the user is viewing to increase the chance of a click.

Put all these things together with people’s interest in watching videos. According to video marketing statistics, 90% of people get to know a particular brand or product by watching a video.

Now you have understood the importance of video ads on an attractive platform called YouTube, So let’s see what formats are available for you to advertise in!

what is youtube marketing


Types of YouTube Advertising

You can advertise on YouTube differently, each with a specific purpose. 

1. In-stream video ads

If you have used YouTube, you have seen advertisements displayed before, during, and after the video you are looking for. These ads are called in-stream ads; they are displayed during playback. This type of advertising is divided into two types:

  • Skippable

They have a variable duration; after 5 seconds, the user can skip seeing them.

  • Non-Skippable

This form of in-stream advertising is not skippable. Non-Skippable ads duration is 15 seconds or even less.

The most common form of advertising on YouTube is using the in-stream.


2. Bumper ads

Like in-stream ads, bumper ads are displayed before, during, and after a video is played. The bumper ads duration is 6 seconds or less and is not rejectable.


3. Outstream ads

This advertising is only shown to mobile users outside the leading YouTube site. By displaying on Google partner sites, you can reach more users.


4. Advertisements on the main page of YouTube (Masthead ads)

They are displayed on the main page of this platform. You can see an example of it in the image below.

Note: It may be a non-video or video advertisement.


5. Non-video ads (Overlay ads)

Overlay ads are not video! In overlay ads, a banner containing text or an image is displayed under the video the audience is watching. Something like subtitles on TV channels.

Also, they are displayed next to the video or the main page.

Note: This type of ad is shown to users only in the desktop version.


6. Ads in YouTube search

A user searches for a specific phrase on YouTube and comes across your ad before watching related videos. Like what you see in the image below:

Note: The ad may or may not match what the user searched for. It depends on your targeting.


Which format is suitable for advertising on YouTube?

As you read in the previous section, there are six options for YouTube advertising. However, the research results have proven that the more options there are, the harder it will be for the audience to choose. Therefore, we want to help you in this direction.

To choose the suitable format, you should consider the following four criteria:

  • period

The time of the advertising video can be as long as you like, But to be considered a View, the audience must watch at least 30 seconds of the ad. Therefore, if the length of the advertising video is less than 30 seconds, it should be seen until the end of the advertisement.

  • The ability to reject ads

Can the audience skip the ad after 5 seconds, or do they have to watch it all? For example, bumper and out-of-stream ads are non-skippable.

  • Showplace

Do you want the ad to be displayed inside YouTube or outside it?

  • Voice

95% of YouTube videos are viewed with sound, So another criterion you should consider is whether the ad is loud or silent. Of course, Masthead and Outstream ads are mute by default.

By putting these criteria together and weighing all aspects, you can choose the suitable format for advertising on YouTube.

youtube advertising types

Advantages of YouTube advertising 

Most YouTube users spend 19 minutes (on average) of their time daily. As a result, some consider this platform the biggest search engine after Google, and they are not wrong.

In general, advertising on this platform has the following advantages:

  • Massive reach to a large group of people

2.6 billion monthly active users mean that YouTube is open to all tastes and backgrounds. On the other hand, it is possible to segment the audience and show the ad to someone who most likely needs you. Their large number of users has also left your hands open so that you can take advantage of it.

  • to be economical

Businesses pay for the engagement they get! This is one of the most attractive features of YouTube ads. The average cost for advertising on this platform is 1 to 3 cents per view. Whereas to advertise on Google, you have to pay something like 79 cents (or more) per click.

  • Accurate Targeting

Being able to target audiences in digital advertising is nothing new, But YouTube goes further and offers a new form of targeting. From simple settings such as users’ demographics and interests to more advanced settings such as the topic of the ad, related keywords, and pages where the ad is to be displayed.

Therefore, the advertisers can display their brand at the right time and place to the target audience they want.

  • Detailed reports

If you use YouTube ads, all the data is available to you. Using them allows you to manage things better than before to make your efforts more effective. For example, you will have detailed information about customer behavior. Also, you can run A/B testing to find the best approach and act on it.

  • High flexibility

You will have a chance to promote your brand or product through different types of YouTube advertising. For example, publish a short video or a long video about the services you offer. It all depends on your goal.

Choosing a suitable format and preparing an attractive ad takes trying, But the benefits are worth the effort. Like any other activity in the world of digital marketing, the success or failure of YouTube advertising must be measured. By what criteria? 


Video ad metrics on YouTube

In measuring the success or failure of advertising on YouTube, two parameters are vital:

  • View

When an ad is Skippable, it counts as a View if the viewer sees 30 seconds of it. If the duration is less than 30 seconds, a View is counted when the ad ends. 

  • Impression

When the ad is Non-Skippable, there will be no View; Because the audience cannot decide whether to interact with the ad! Here, the parameter is the impression.

Regardless of the ad format, every time a video is viewed is a view, But not necessarily a visit.

Note: only views are included in your remarketing list; those who have somehow interacted with the advertisement.

Among other criteria for video advertisement on YouTube are:

  • Characteristics of ad viewers;
  • Actions are taken after watching the ad;
  • Exchange rate.


Pricing and cost of YouTube advertising 

The cost of YouTube advertising will vary depending on your business type and goals. For example, you should spend more on cosmetics; Because the competition is scorching.

The format you choose for advertising is among the variables affecting the final amount.

YouTube ads are generally paid on a CPM (Cost Per Thousand Impressions) or CPV (Cost Per View) basis.

The CPV model deducts its cost when one view is calculated for you. As we explained, in Non-Skippable ads, there are no visits. Therefore, the CPV model is considered for Non-Skippable ads.

Most businesses budget $10-$50 per day. In other words, for every 100,000 views, you should pay approximately $2,000!



in this article on the smart strategy, we deep dive into youtube advertising types and costs.

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