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Your Ultimate Guide On YouTube Video Advertising: Learn Everything From Metrics To Cost

Your Ultimate Guide On YouTube Video Advertising: Learn Everything From Metrics To Cost

Your Ultimate Guide On YouTube Video Advertising: Learn Everything From Metrics To Cost

The imperativeness of video marketing is not alienated today. And is there any platform better than YouTube for it?

You would only understand it when you fully exploit the bright side of YouTube video advertising at the same time not violating its guidelines. Until then, get a glimpse of current data that will make you realize how big a hub of opportunities YouTube video advertising opens up for businesses and what you’ll miss if you don’t go for it.

  • On a global level, YouTube stands at number 2 when it comes to most visited sites.
  • Being the second platform to catch netizens’ attention after Google, it has over 2 billion monthly users who adore it actively.
  • It has influenced the buying decision of over 66% of people, that too at a global level.
  • Over 27 million people use YouTube daily.
  • This platform is no less than a top-notch voice-based search engine as it supports 72+ language versions.
  • It is available in over 80+ local versions.
  • After the pandemic, the usage of YouTube video advertising has doubled by small and medium business enterprises.

3 Fruitful Benefits Of YouTube Video Advertising

Though YouTube video advertising requires going the whole nine yards to keep up the online marketing game at a competitive edge, its bright side makes it all worthwhile.


Your Ultimate Guide On YouTube Video Advertising: Learn Everything From Metrics To Cost


Google realized YouTube’s potential a long time back, which is the reason why it acquired YouTube in the first place. Here are three key benefits of advertising on YouTube:

Boosts Presence & Customer Retention

YouTube video advertising has a huge impact on people’s perspectives. With over half of the global user base, it is the top-notch search engine that provides people with optimum results.

This, in turn, also creates a credible brand authority in the audience’s eyes. It’s like Google itself is linking back to your YouTube presence, thus forming a positive perception about your content quality and services/products.

Elevates Your Reach

Be it a concept-related video ad, a service-related video ad, or a product review video, there are people out there who are looking for genuine and reliable offerings on YouTube, and if you can provide them with that, it’s a win-win opportunity for both sides.

YouTube liberates users to target a distinctive audience base based on gender, demographic, and interests. This can assist in getting the most out of your YouTube marketing strategy without leaving your money to burn.

Increases Conversions

Besides business promotion, YouTube video advertising can help you raise additional income.

With a bundle of distinctive types of ad formats, YouTube opens a hub of opportunities for businesses to generate returns through advertising. These ads not only bring in additional potential prospects but also escalate conversions. Today people use YouTube to search about a product or its quality before buying it, and YouTube ads are a quintessential review garnering platform for them where they can get all of the information. 

Types Of YouTube Ads

YouTube video advertising starts with the kind of YouTube ad that you pick for your campaign since these ads run on certain set goals/objectives that the businesses wish to rake in from them. These goals vary as per the type of ad you pick for your business. Also, every ad gets displayed in certain distinguished formats. Curiosity piling up? Let’s dive deeper to be well-versed with this…..

1. YouTube Skippable Ads

As the name suggests, YouTube Skippable Ads can be skipped by the viewers after a certain time period; in this case, of course, we all know it is 5 seconds. Such ads are chargeable on Cost Per View (CPV) basis when your video gets a complete watch time of a minimum of 30 seconds (or complete watch time for videos shorter than 30 seconds).

Also regarded as TrueView Ads, skippable ads can really do well for small and medium business enterprises as they ensure that you pay for only the audience who is actually looking up to a service/product similar to yours.

The science behind this is quite simple; since a person doesn’t interact or even view a Skippable or TrueView Ad until they aren’t actually looking forward to a relevant service/product being promoted in it, which means you won’t get charged until the audience is actually into it. Plus to that, they aren’t time-bound since the user gets an option to view it on their own will after the first 5 seconds.

 If a viewer interacts with your video, you’ll be charged on a Cost Per Action (CPA) or Cost Per Mille (CPM- cost-per-thousand-impressions) basis.

Talking of formats or places where Skippable YouTube video ads get displayed either prior to, meanwhile or, at the end of a video, it includes:-

  • YouTube Watch Page (Simply put, it’s the page that opens up when a viewer clicks on a video to view it)
  • App or Websites associated with Google

Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Sales
  • Leads
  • Brand Awareness and Reach
  • Website Traffic
  • Product and Brand Consideration

2. YouTube Non-Skippable Ads

YouTube Non-Skippable Ads or Pre-Roll In-Stream Ads are in-stream ads that don’t liberate the audiences to skip it. Such video ads have 15 seconds or less duration to play and should be invested in when the message given by or the purpose served by your ad drags until the end.

For a business owner who is about to go for Non-Skippable YouTube Ads, it’s imperative to curb the audience base so as to not overspend because not all the viewers will actually bring in conversions to your business’ doorstep.

One thing that isn’t contrasting between skippable and non-skippable YouTube ads is that both of them can be displayed prior to or in the middle, or at the end of a video. Integrating Call To Action (CTA) tabs to YouTube Non-Skippable Ads is an avant-garde technique for directing the audience to a landing page of your choice.

Such ads are charged on the CPM cost model, which indicates that the charge gets applicable per thousand impressions. Though these ads aren’t a magic trick to escalate your business revenues, they bound the user to come across your brand, and the more they come across your brand name, the more they’ll remember it. That explains the goals that can be linked to running these ads.

These ads get displayed before or at the end of a video or between an interval while a video is being played on:-

  • YouTube Videos
  • Apps or Websites associated with Google

Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Brand Awareness and Reach

3. YouTube In-Feed Ads

Have you ever noticed the first thumbnail (or simply an image) when you open your YouTube? That’s an in-feed video ad which usually has a thumbnail image attached to it. These ads are similar to Non-Skippable video ads that play like a video and attract CPM-based costing. It won’t be wrong to say that in-feed ads are kind of interest-based, it’s just like a buffet that is presented before the guests (viewers in this case), and they can have a particular dish if they wish to. Viewers click on these ads to get insights about the service/product being presented in the video content.

The display section allotted to In-Feed Ads comprises more than a single place. A viewer comes across an In-feed YouTube video ad on YouTube’s homepage. Apart from that, these ads also appear in the related videos section on YouTube and in YouTube search results.

Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Product and Brand Consideration
  • 4. Bumper Ads

It won’t be wrong to say that bumper ads are those non-skippable ads that your audience doesn’t want to skip because such ads don’t go beyond 6 seconds. Yes, you read that right. It indicates that you’ve to be concise and smartly deliver your message within these six seconds, more like a quick look upon a teaser. It might seem like a biting-a-bullet kind of task, but if you see the top bumper ads on YouTube, you’ll understand that they actually have the potential to keep your brand name alive in the audience’s memory.

Since it is a non-skippable variant of YouTube ads, it follows the CPM cost model.


Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Brand Awareness and Reach

5. Outstream Ads

If we ponder upon the name itself, it must be clear that such ads don’t get displayed anywhere on YouTube. The catch here is these ads are allotted a display section on Google video partner apps and sites (that too on mobiles/cell phones or tablets), so it’s assured that your money isn’t drowning. Talking of cost, out-stream ads are charged on vCPM basis, i.e., viewable cost-per-thousand-impressions, which means pay only if the ad has got a view-time or watch time of at least 2 seconds.

When a person comes across an out-stream ad, there won’t be any audio as it’s muted by default in these ads. Nevertheless, it just needs a tap to play the sound, so don’t forget to use avant-garde and well-matched background audio. Banner ads or overlay ads are typical out-stream ads.

Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Brand Awareness and Reach

6. Masthead Ads

These video ads get displayed on the YouTube feed or homepage, and their placements can be bought for desktop and mobile apps as well as YouTube apps for TV. 

A simple tap would suffice to play the audio of a Masthead Ad, that comes with mute ‘on’ by default. Also, there are slight distinctions regarding the platform you pick to display these ads on. For instance, One can’t integrate CTA tabs while placing a masthead YouTube ad on TV.

The cost of such ads gets accumulated on the CPM pricing model.

Goal/s That Can Be Achieved With Skippable YouTube Video Ads

  • Brand Awareness and Reach

3 YouTube Video Advertising Ideas To Make Your Brand Name Stand Apart From The Race

Till now, you must’ve come across a plethora of YouTube ads, where some might have made you feel like getting a magic button to make it end soon, there surely would have been some that would have gotten your attention clung to it. Here are 3 ideas that can assist your YouTube ads in communicating impactfully with your audience:-


Your Ultimate Guide On YouTube Video Advertising: Learn Everything From Metrics To Cost

1. Try Narrating A Concept

This is a basic yet effective technique for developing a YouTube video ad. Many businesses go after giving a voice-over to the videos and describe the idea, value, or message they want to convey to the audience.

Such video ads can potentially hook the audience within a few seconds. This requires an idea behind how to talk about the specific message with a relevant video concept and present it uniquely.

2. Diversify Your Testimonials

You must’ve seen testimonial ads where a person speaks about how a particular service or product has impacted them. Viewers connect more to such ads as they get insights into what they can derive from a particular service/product. 

Such ads make experience talk but need to go beyond set boundaries of simply speaking and advertising. Try to create such ads with a zeal that makes the viewers bound to it, and if you’re going to use a non-skippable ad, you better do so just as it starts.

3. Let The Graphics Talk

At times, a viewer can get along with compelling graphics, even if they are used for just displaying texts over an optimum backdrop. Or else, you can use animated characters to do so. Such ads go well for emphasizing product details.

These 3 ideas can be utilized in a plethora of ways to reap the fruits of YouTube video advertising. The more you’ll experiment, the more you’ll be able to engage with your audience in new ways.

Moreover, you’ll develop a broad insight into how your audience is actually engaging with your YouTube ads over time so as to make out which kind of ad and which idea is captivating their attention the most. If you don’t happen to be an old acquaintance of YouTube video advertising, you need to understand its key metrics. Lucky you because that’s exactly what we’re going to talk through next.

YouTube Video Advertising Metrics

In order to track your YouTube video advertising campaign’s performance, it’s imperative to be aware of the metrics associated with it so as to draw a meaningful picture of what’s going on from the reports.


It is counted as how often viewers come across your ad’s thumbnail in in-feed video ad or the initial part of your video ad.

Paid Views

This happens when a viewer watches the whole video ad or a major part of it. For instance, if a video ad is 25 seconds longer, then watching it for about 18 seconds or above would be counted as a paid view.

Interactions & Engagement

These two metrics vary as per the type of ad you pick for your YouTube video advertising campaign. Its dependability has to do with the video ad’s length and the action taken on it.

Cost Per View (CPV)

It’s the highest bid value that you set for your YouTube video advertising campaign or an ad group. In layman’s terms, it indicates the top amount that you’re ready to invest for a view in the auction.

View Rate/View-Through Rate (VTR)

It is the percentage estimation of views per impression that gives the idea of how compelling and enticing YouTube advertisement is.

YouTube Advertising Cost

As we’ve discussed earlier, YouTube video advertising usually gets charged on Cost-Per-Thousand-Impressions (CPM) and Cost Per Action or Cost Per View basis. But it can be quite a perplexing task to determine how meager or large an investment you should consider to invest in YouTube marketing.

Talking of the average figures, business corporations go for investing $0.10 to $0.30 per view or per action, wherein the average daily budget for YouTube video advertising costs them $10 for a day. However, this investment can vary depending upon the:-


YouTube video advertising is done for a plethora of reasons, including brand awareness and product consideration. Thus the cost depends upon the goals you want to attain as it impacts the YouTube bids.

Target Audience Base

With YouTube, you develop advertising campaigns for audiences of distinctive interests and demographics. This affects the cost of marketing on YouTube.

Ad Type

The type or kind of YouTube video ad you pick to go for influences your YouTube advertising cost heavily. In fact, to get the optimum placement ideas for running your ads on YouTube, you can also take assistance from Google Representative, which will further impact your YouTube video advertising budget and strategy for good.


Even in the same niche, businesses operate at different scales, which means the budget allocations differ for corporations. This is so because every business’s goals, requirements, and strategies differ. Thus, there is no one hard, and fast cost structure for YouTube video advertising cost.

While some business corporations go for handling their YouTube video advertising campaign themselves with the assistance of their team, others trust a digital marketing agency and focus better on other tasks at hand, which once again sets the different cost parameters for promoting a business on YouTube.

Get One Step Ahead In YouTube Video Advertising With Mind Mingles’ PPC Plans

Today’s era is highly influenced by video ad marketing, and leaving out the world’s second most used platform isn’t a smart choice if you wish to rake in the benefits of both worlds. Mind Mingles is a digital marketing agency, and with the years of experience and expertise that we have put in to craft our Pay-Per-Click Packages, we guarantee that your business will be seen on YouTube and other top social media platforms.

We’ll be with you throughout the process and assist you in setting up the ads account, bidding strategy, and optimizing the landing pages as well. With monthly reports, you’ll get the optimum picture of how far your business’ ROI has grown, as we believe in transparency.

So ready to make your business visible on YouTube? Get In Touch With Us Now Through Mail Or Just Call Us!

Gurleen Kaur

Writer & Blogger

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