YouTube Ad Formats: A Complete Guide

As one of the top video platforms, YouTube offers a variety of advertising formats tailored to suit different marketing goals. 

A brand can engage its audience through each format in a unique way. A YouTube ad campaign that resonates with viewers and drives results requires an understanding of these ad formats.

This article by Kickstart Digital explores each YouTube ad format, its strategic application, and how to use it to maximise online presence and audience engagement on YouTube. 

8 Types of YouTube Ad Formats

Advertising on YouTube offers a variety of formats, enabling advertisers to tailor their message and reach their intended audience.

1. Skippable in-stream ads

In-stream ads can appear before, during, or after a YouTube video. Usually, they are short promotional videos that viewers can skip after five seconds. 

Skippable in-stream ads offer a wider reach across different devices and allow viewers to skip, resulting in a more positive user experience. YouTube videos can be viewed on any device (e.g., smartphones, tablets, game consoles, computers).

The main challenge is to create a compelling ad that captures the viewer’s attention within the first five seconds to prevent them from skipping it.

2. Non-skippable in-stream ads

An in-stream ad that cannot be skipped is known as a non-skippable ad. The videos are usually 30 seconds or shorter and can be played before, during, or after the main video.

The skippable in-stream ads appear across all devices and on the same screens as the main video content.

Taking the time to watch an entire ad gives the message or story more time to be conveyed, potentially increasing engagement and brand awareness.

Since viewers cannot skip these ads, they may find them annoying or intrusive. Consequently, viewers might not watch the video or ignore the advertisement as a result of a negative viewer experience.

3. Bumper ads

A bumper ad is a video ad that lasts six seconds or less on YouTube. They can be played before, during, or after another video. Unlike other ads, these cannot be skipped by the viewer.

These ads appear before, during, and after the main video and are visible on both mobile and desktop.

Due to their brief nature, they can capture an audience’s attention quickly and effectively. The messages they convey are concise and memorable, resulting in effective brand awareness.

Due to their short length, they can only convey a limited amount of information. To be effective in such a short period of time, creative and impactful messaging is required.

4. Display ads

YouTube display ads are image-based ads. It usually consists of text and links located around the video player rather than playing the video itself. Usually, these ads are displayed on the right side of the video player, above the video suggestion list, or below it, but only on desktop and laptop computers.

Since display ads don’t interrupt video playback, they’re less disruptive. Through these ads, viewers can engage with the advertisement at their own pace and click through for more information without interrupting the video.

Nevertheless, YouTube display ads aren’t displayed on mobile devices, which is a significant limitation. Due to the high volume of YouTube traffic on mobile devices, these ads miss a large portion of the potential audience due to the restricted reach.

5. In-feed ads

The in-feed advertisement is a type of YouTube ad that promotes video content where users are most likely to discover new videos (such as along side related videos on YouTube, in search results, or on the YouTube homepage).

The marketing objectives of these campaigns can range from boosting brand awareness or driving online sales to generating leads.

In-feed ads target users based on their viewing habits and interests, placing relevant ads in their discovery feeds. Due to the relevance of the ads to the viewer’s current interests or search terms, the ads can lead to higher engagement.

The main challenge is ensuring the ad’s content is engaging and relevant enough to encourage viewers to click through.

6. Overlay Ads

Ads that appear over the bottom of YouTube videos are overlay ads. In these ads, viewers are encouraged to click through to the advertiser’s website through text or visuals. 

They appear over the lower portion of video content on laptop and desktop screens only. Since overlay ads appear during a video, they are effective for driving direct traffic to a website. 

Although users can quickly close these ads using the “x” button, their effectiveness may be reduced. Nevertheless, an advertiser only incurs a cost when a user clicks on an ad, not just views it.

7. Sponsored cards

A sponsored card is a small, interactive ad that appears during a YouTube video, usually during moments relevant to the content being viewed.

Normally appearing on the right-hand side of a video, these cards are visible on both desktops and mobile devices. Viewers can click on them to learn more briefly.

Viewers can continue watching videos without being disrupted by sponsored cards because they are subtle and non-intrusive. The advertisements are contextually relevant and often link to the video’s content, which makes them more effective for viewers who are interested in the products being advertised.

It is particularly beneficial for e-commerce businesses that sell products online, as these ads can drive traffic and sales directly. Companies that offer services might find sponsored cards less effective than other ad formats.

8. Masthead ads

Masthead ads appear at the top of YouTube’s homepage as a premium ad format. When users visit YouTube, they are often the first thing they see.

YouTube Masthead ads play automatically without sound for up to 30 seconds at the top of the YouTube home feed and can only be reserved by contacting Google sales. 

It is possible for these ads to include a mix of images, videos, or interactive elements. In general, masthead ads offer more exposure than other YouTube ad formats, but they tend to be less targeted.

There is a high potential for visibility and reach due to the prominent placement. As a result of their prime positioning, masthead ads are often more expensive than other types of ads. 

How much does YouTube advertising cost?

A typical YouTube video ad costs $0.01 to $0.03 per view, depending on the campaign goal, target market, and video quality. 

Advertising on YouTube can boost brand awareness, generate qualified leads, reach audiences, and ensure overall engagement. Consequently, YouTube advertising can be worth the investment if you develop a strategy that yields results and creates content that is engaging.

Customisation and targeting

• Advertisers can target audiences based on demographic parameters such as age, gender, parental status, and household income. The goal is to reach demographic groups that are more likely to be interested in your product or service. This format is often used by event planners to boost event registration by targeting demographics.
• Advertising based on interests, hobbies, and online behaviours, such as YouTube searches and views, enables advertisers to reach out to users based on their interests, hobbies, and online behaviour. The purpose of this type of targeting is to reach users who are interested in similar topics or activities.
• Using geographical targeting, users can be targeted in specific geographic locations, from broad regions like countries to specific areas like cities or postal codes. Additionally, local businesses can target ads within a specific radius of a location.
• Targeting based on devices–allows businesses to target users based on the devices they use to access YouTube, such as desktop computers, mobile phones, or tablets. For campaigns targeting users primarily on certain types of devices, this can be particularly important for optimising ad experiences.
• Users who have previously interacted with the advertiser’s website or app are targeted by remarketing. It’s an effective way to re-engage consumers who are already familiar with a brand or showing interest in its products, potentially moving them forward in the buying process.
• In placement targeting, advertisers can exclude certain channels, videos, or types of content from appearing in their ads. Using this control, ads are shown in a context that aligns with the brand and reaches the intended audience.
• Creating affinity audiences is possible based on users’ demonstrated interest in brands or products. Audiences can be built based on people who have visited an advertiser’s website, watched their videos, or used their app, allowing for highly specific targeting.
• By using customer data, such as email addresses or phone numbers, advertisers can target their ads. The goal is to reach existing customers or leads who have interacted with the company.

What are the best ways for advertisers to narrow down their target audience?

Advertisers can narrow their YouTube target audience by following these five tips: 

1. Determine the target audience’s age, gender, parental status, and household income.
2. Identify the audience’s interests and check related topics.
3. Identify your brand’s or similar product’s target audience.
4. Promote your products or services to audiences who were previously interested in them
5. Identify the keywords your audience uses most frequently. 

Google’s programmatic advertising on YouTube 

The term “programmatic advertising” refers to digital advertising that uses automated technology to purchase advertising space (as opposed to traditional (often manual) methods).

Programmatic advertising is available on YouTube through Google Ads.

Adverts can therefore purchase and display programmatic video ads on YouTube (e.g., outstream, instream). 

Deals guaranteed by YouTube programmatic

YouTube programmatic guaranteed deals enable advertisers to buy YouTube’s most valuable inventory (such as YouTube masthead ads) using automated buying solutions. With these deals, you can choose from a variety of inventory, targeting, and pricing options. 

Bumper ads, skippable in-stream ads, 15s non-skippable ads, and masthead ads are the four ad formats available

However, this feature is only available to Display & Video 360 account holders.  

The benefits of YouTube advertising

There are seven main benefits of including YouTube advertising in an ad campaign: 

1. Reaching a broader audience. As one of the largest search engines and video platforms, YouTube offers global access to a vast and diverse audience. For businesses seeking to increase brand awareness, this extensive reach is invaluable.
2. Search engine optimization benefits. YouTube is owned by Google, so videos often rank highly in search results. Brands can benefit from this by increasing their online visibility and optimising their SEO.
3. Targeted advertising. YouTube offers advanced targeting options, including demographic, interest-based, geographic, and device-based targeting. By targeting specific audience segments, businesses can increase the effectiveness and efficiency of their advertising efforts.
4. Mobile accessibility. YouTube’s mobile-friendly platform enables advertisers to reach users on the go, with the growing use of mobile devices.
5. Engaging formats. The message can be conveyed more effectively by video content than by text or images alone. You can keep an audience’s attention with YouTube’s various ad formats, such as skippable and non-skippable in-stream ads, bumper ads, and display ads.
   
   In addition, videos can trigger strong emotional responses, increasing the likelihood that they will be shared and remembered. As a result of this potential for high engagement, customer loyalty may increase and conversion rates may increase.
   
6. Measurable performance. With YouTube’s analytics tools, advertisers can track the performance of their ads in detail. Views, watch time, click-through rates, and conversion rates are some of the metrics that help measure the effectiveness of campaigns and provide data-driven insights.
7. A cost-effective approach. When compared to traditional media, YouTube advertising can be cost-effective due to the ability to control budgets and pay only for specific interactions (like views or clicks).

What are the best methods for measuring YouTube ad performance?

YouTube advertising performance can be measured by the following metrics:

1. Impressions

Ad impressions indicate how often viewers view the ads and how far the campaign has reached.

• Ad impressions counted before, during, or after the viewer’s organic video starts playing on the watch page.
• A video’s thumbnail is counted as an impression when viewed in the viewer’s feed.
• Viewable impressions for YouTube shorts ads count when the video starts playing within two seconds.

2. Paid views 

The number of paid views reveals how many times viewers view the entire ad instead of just the impression.

3. Interactions

The number of interactions reflects the number of engagements for video campaigns. The main action associated with an ad format is engagement. 

Engagements are counted after 10 seconds of viewing, as opposed to views. 

Marketers can compare the value and performance of their search, video, and display campaigns using interactions. 

You can use interactions to compare the value of searches and video views, for example. Various campaign types are consolidated in interactions.

4. Engagements

The number of engagements provides an indication of the frequency of viewers engaging beyond just an impression (or skipping over the video), but they don’t always reflect the full viewing experience. 

The engagement rate is calculated by dividing the number of times the ad is shown by the number of times the ad is engaged with.

• Engagement rate = engagements/impressions

The percentage of impressions that resulted in an engagement can be calculated using this metric. As a result, it’s similar to a view rate, except engagements use less strict criteria when counting than views.

5. View-through rate

A view rate indicates how compelling an ad is by measuring how many impressions result in a view.

• View rate = views/impressions

By calculating the view rate, we can determine what percentage of people viewed the ad after seeing it?

Having a low view rate may indicate that the creative’s first portion wasn’t compelling. Across all industries, 10-15% is considered average, but it can vary. 

6. Maximum cost per view 

Advertisers set this bid for campaigns or ad groups. Ideally, it should be the highest amount you’re willing to pay for a view.

• As a main goal of your campaign, average cost per view helps you determine how much you’re paying for a view and whether your ads are cost-effective.

There are many factors that influence the average CPV, including format, industry, seasonality, and others. For example, how cost-effective is ad group A compared to ad group B based on your historical campaign data.

7. “Video played to” metrics

As a result of these metrics, we can identify where viewers may be losing interest by tracking how many watched 25%, 50%, 75%, or 100% of the video.

Depending on the video format, the video player will start at a different point. When videos are played in-stream, they start playing automatically. In-feed viewers are taken to the watch page after clicking the thumbnail.

8. Earned actions 

These actions include likes, shares, and subscribers gained as a result of viewing the advertiser’s ad. Actions earned by advertisers aren’t charged to advertisers. 

An earned view is considered a single view if more than one view is made by the same person.

The earned actions provide insights into the added value the campaigns help to reach. In many cases, it indicates that a customer has a strong affinity for a particular brand or channel.

9. Viewability 

A viewability measurement indicates whether the ad is actually seen by users (with specific criteria for what counts as “viewable”). The concept of viewability applies to all types of campaigns, not just video campaigns. 

When at least 50% of a display network ad’s area is visible for one second or two seconds, the ad is considered “viewable.” 

10. Display impression share metrics 

Marketers can use this data to determine if they can increase ad presence by filling more available ad inventory.

YouTube Advertising Best Practices

The following are 8 best practices for creating YouTube ads: 

1. Clear and creative CTAs

Marketing professionals should always be clear about the action they want viewers to take, and they shouldn’t be afraid to be creative. Engaging people with reverse psychology or humor, for example, can spark curiosity.

2. Optimal video length

In terms of video ads, it is recommended that they be between 15 and 60 seconds in length, with a preference for around 30 seconds, since this length is found to have the highest view-through rate. 

If possible, avoid exceeding 60 seconds.

3. Quick pacing

To prevent viewers from skipping the ad, it’s important to engage them quickly. 

Attention must be captured within the first few seconds. It is important for advertisers to align their brand with a viewer’s need or pain point within the first seven seconds.

4. Design for YouTube viewing habits

Ads should be created with sound and with a mobile-first approach in mind. The majority of YouTube views are on mobile devices, and most ads are watched with sound on, so ads should be optimized for both audio and visual impact.

5. Choose an eye-catching thumbnail

When an ad thumbnail is attractive, it increases the chances of a viewer clicking on it. 

Marketers should select a thumbnail that represents their video content and aligns with their promotional text or keywords for in-feed video ads. 

6. Consider the viewer’s next destination

Viewers should be directed to a YouTube channel or website with additional video content. To maintain viewer engagement, advertisers should ensure that landing pages are relevant to ad content.

7. Continuously test your creatives

By regularly updating and testing different ad creatives, you can avoid ad fatigue and maintain viewer engagement. Measure your results and use data to guide your adjustments.

8. Refine your targeting

It is important for advertisers to review and adjust their targeting settings. It is also important to avoid overly broad targeting and focus on reaching the most relevant audience. 

For the best results, A/B tests should be conducted with different targeting settings while keeping other campaign elements constant.

The YouTube Ad Policy and Guidelines: What You Need to Know

To begin with, all YouTube ads should adhere to Google Ads advertising guidelines.

Second, ads should always meet YouTube quality standards (e.g., clarity, correct spelling, high quality images).

Additionally, Google highlights the following 5 aspects as prohibited content:

• Topics depicting nudity, sexuality, and apps facilitating dating and relationships are sensitive topics.
• The use of misleading information and false claims in advertisements. 
• Ads that contain disturbing or negative text or images. Exceptions can be made if the advertisement promotes professional media (e.g., movies and TV shows). 
• Advertisements that target specific health conditions or parts of the body. As long as the images aren’t disturbing or overtly sexual, there can be exceptions. 
• The language used in ads that is inappropriate or offensive.

Ads in mastheads may have more restrictive content requirements since they provide advertisers with the most prominent YouTube placement. Disapproved YouTube masthead ads may, however, continue to run on other Google properties.

For masthead ads, here are two more prohibited categories: 

• Campaign ads that promote elections or political issues.
• Gambling advertisements. 

Conclusion

Advertisers can reach their target audience effectively with YouTube’s diverse range of ad formats. YouTube ad campaigns are most effective when they use the right ad format that aligns with both audience preferences and campaign goals. 

You should understand the strengths and applications of each format, align them with your marketing goals, and refine your approach based on performance analytics. Using YouTube’s extensive reach and analytics, advertisers can craft compelling narratives that resonate with viewers, fostering brand awareness and driving conversions.