How To Advertise Ads On YouTube: Step By Step Set up

Learn how to set up and optimize your YouTube ads step-by-step to reach your target audience and achieve amazing marketing success.

Table of Contents

Introduction
Why Advertise on YouTube?
Types of YouTube Ads
Cost of YouTube Ads
Comparing YouTube Ads to Other Social Media Ad Costs
Step-by-Step Guide to Advertising on YouTube
Conclusion
FAQ

Introduction

YouTube advertising involves promoting videos or banner ads on YouTube to reach a large and various audiences. The advantage of YouTube is that people don't come here by accident. They come here to educate themselves or even for entertainment, but it always has a purpose. YouTube ads come in various formats, including skippable and non-skippable video ads, overlay ads, and more, each tailored to different marketing goals and audience behaviors.

Why Advertise on YouTube?

• Massive Reach: YouTube is the second-largest search engine globally, offering access to billions of users across various demographics.
• Engagement: Video content is inherently more engaging than text or image-based content. Videos can convey complex messages, evoke emotions, and drive actions more effectively. 
• Targeting Capabilities: YouTube's advanced targeting options allow advertisers to reach specific audiences based on demographics, interests, behaviors, and even past search history.
• Detailed Analytics: YouTube provides comprehensive analytics, enabling advertisers to track performance, measure success, and optimize campaigns in real-time.

Types of YouTube Ads

YouTube offers multiple ad formats, each designed to meet different marketing objectives and engage audiences in unique ways. Understanding these formats can help you choose the right type of ad for your campaign goals.

Skippable In-Stream Ads

Skippable in-stream ads play before, during, or after other videos on YouTube. Viewers have the option to skip these ads after 5 seconds. Advertisers are charged only when a viewer watches 30 seconds of the ad, watches the entire ad if it is shorter than 30 seconds, or interacts with the ad (e.g., clicks on a call-to-action).

Ideal For: Broad awareness and engagement. These ads are great for reaching a large audience and ensuring that you only pay for engaged views.

Non-Skippable In-Stream Ads

Non-skippable in-stream ads must be watched before the viewer can proceed to the main video. These ads can be up to 15-20 seconds long.

Ideal For: High-impact messages that need guaranteed views. These ads are suitable for campaigns focused on product launches or significant announcements.

Bumper Ads

Bumper ads are non-skippable ads up to 6 seconds long that play before, during, or after a video.

Ideal For: Quick, memorable messages. These ads are perfect for reinforcing brand messages and creating quick, lasting impressions.

In-Feed Video Ads

In-feed video ads appear on the YouTube homepage, search results pages, and as related videos on YouTube video watch pages. They consist of a thumbnail image and up to three lines of text.

Ideal For: Driving awareness. These ads are effective in attracting users who are actively searching for related content.

Overlay Ads

Overlay ads are banner ads that appear at the bottom of a video. They are semi-transparent and typically consist of text or images.

Ideal For: Complementing other ad formats. These ads work well in combination with in-stream ads to reinforce messages without being overly intrusive.

Cost of YouTube Ads

Understanding the cost structure of YouTube ads is crucial for planning and optimizing your advertising budget. YouTube's pricing model is flexible, allowing advertisers to control their spending while targeting the right audience.

How YouTube Advertising Pricing Works

• Cost-Per-View (CPV): This model charges advertisers when viewers watch 30 seconds of the ad, the entire ad if it’s shorter than 30 seconds, or interact with the ad (e.g., click on a call-to-action). This model is typically used for skippable in-stream ads and ensures that advertisers only pay for engaged views.
• Cost-Per-Thousand-Impressions (CPM): Advertisers are charged for every 1,000 impressions (views). This model is commonly used for non-skippable in-stream ads and bumper ads, ensuring that the ad is seen by a large number of viewers.

Factors Influencing Costs

• Different ad formats come with varying costs. For instance, skippable ads are usually priced on a CPV basis, making them cost-effective for advertisers seeking to pay only for engaged views. In contrast, non-skippable ads, charged on a CPM basis, ensure guaranteed impressions but might cost more due to their intrusive nature.

• Demographics: Targeting specific age groups, genders, or household incomes can affect costs.
• Interests and Behaviors: Ads targeting specific interests or behaviors may cost more due to higher competition.
• Geographic Location: Ads targeting specific locations can vary in cost based on the area's advertising demand.

• Max CPV: Set the maximum amount you’re willing to pay per view.
• Target CPM: Set the average amount you’re willing to pay per 1,000 impressions.
• Target CPA: Pay based on the cost-per-action, which optimizes for conversions.

• Higher quality and more relevant ads often achieve better engagement rates, potentially lowering costs.

Example Cost Breakdown

On average, YouTube advertising costs range from $0.11 to $0.50 per view or action with businesses typically setting a daily budget of $10. For CPM (Cost-Per-Thousand-Impressions) you'll pay between $4 to $10. Here are some more detailed pricing insights:

Comparing YouTube Ads to Other Social Media Ad Costs

On average, YouTube advertising costs range from $0.10 to $0.50 per view. In comparison to other social media, Facebook ads typically cost about $0.97 per click, while Instagram ads cost around $1.20 per click. Twitter ads usually come in at about $0.38 per click, and LinkedIn, which is known for its higher professional targeting, has an average cost per click of $5.26.

These figures highlight that YouTube offers a cost-effective way to reach a large audience, especially considering the high engagement potential of video content. While platforms like Facebook and Instagram provide more affordable clicks, the immersive nature of YouTube ads often results in higher engagement and longer viewer retention. 

Therefore, when planning your advertising budget, it’s crucial to consider not just the cost per click or view but the overall effectiveness and return on investment that each platform offers.

Step-by-Step Guide to Advertising on YouTube

Step 1: Create a YouTube Channel

Before you can advertise, you need a video to promote. Follow these steps to upload your video to YouTube:
1. Sign In to YouTube:

• Go to YouTube and sign in with your Google account. If you don’t have a Google account, create one.

• Click on your profile icon at the top right corner of the screen and select "Your Channel."
• Click "Create Channel" and follow the prompts to name your channel and customize its appearance.

• Add a channel description, profile picture, and banner image. Make sure these elements reflect your brand and are visually appealing.
• Upload a few introductory videos to provide content for viewers and to give a preview of what your channel will offer.

Step 2: Set Up Your Google Ads Account

• Go to Google Ads and click "Start Now."
• Sign in with your Google account and follow the prompts to create your Google Ads account.

• When you first log in, you might be prompted to create a campaign. Select the option to set up your account without a campaign if you want to familiarize yourself with the interface first.

Step 3: Create a New Campaign

• In your Google Ads dashboard, click on the "Campaigns" tab and then the "+" button to create a new campaign.
• Select "New campaign."

• Choose your campaign objective, such as "Sales," "Leads," or "Website traffic."
• Select "Video" as the campaign type.

• Name your campaign and set your budget. You can choose a daily budget or a campaign total budget to control your spending.

• Select your bidding strategy, such as Maximum CPV (Cost-Per-View) or Target CPM (Cost-Per-Thousand-Impressions).
• Choose the networks where you want your ad to appear, such as YouTube search results, YouTube videos, or Google Display Network.

• Set your target demographics, including age, gender, parental status, and household income.
• Specify geographic locations and languages to ensure your ad reaches the right audience.
• Exclude specific content types if necessary to avoid showing your ad on inappropriate videos.

Step 4: Choose Ad Format and Create Ad Groups

• Choose between formats such as skippable in-stream ads, non-skippable in-stream ads, bumper ads, or in-feed video ads.

• Ad groups allow you to organize and target different sets of ads within a campaign.
• Name your campaign and set your budget.

Step 5: Create Your Ad

• Select the video you uploaded to your YouTube channel.
• Add a title, description, and call-to-action that encourages viewers to take the desired action, such as visiting your website or subscribing to your channel.

• Set the final URL where viewers will land when they click on your ad.
• Customize the display URL to make it memorable and relevant.
• Add a companion banner made from images in your video to enhance visibility on desktop.

Step 6: Set Advanced Targeting Options

• Use keyword targeting to place your ads on videos related to specific search terms.
• Choose topics that align with your content to show ads on relevant videos.

• Select specific YouTube channels, videos, or websites where you want your ads to appear. This ensures your ads are shown in contexts most likely to engage your target audience.

• Target users who have previously interacted with your videos, channel, or website. Remarketing helps re-engage potential customers who are already familiar with your brand.

Step 7: Launch and Monitor Your Campaign

• Double-check all your settings to ensure everything is correct.
• Click "Create Campaign" to launch.

• Use the Google Ads dashboard to track key metrics such as views, clicks, and conversions.

• Test different ad creatives, targeting options, and bidding strategies.
• Conduct A/B testing to determine what works best for your audience and campaign goals.

Conclusion

Advertising on YouTube offers a perfect opportunity to connect with your potential and engaged audience. By leveraging the platform's ad formats and precise targeting options, you can create amazing campaigns that drive results. From setting up your campaign to continuous optimization, following best practices ensures that your ads are seen by the right people, ultimately enhancing your brand visibility and achieving your marketing goals.

Ready to maximize your business potential? Schedule an online consultation with our experts to receive personalized strategies and insights tailored to your business needs. Contact us today and discover how we can help you create impactful campaigns that deliver outstanding results. Don't miss this opportunity.

FAQ

1. Why should I advertise on YouTube?

2. What are the different types of YouTube ads?

3. How does YouTube's ad pricing model work?

4. Why do I need Google Ads to run YouTube ads?

5. What factors influence the cost of YouTube ads?

6. How do YouTube ad costs compare to other social media platforms?