What Are Youtube Ads And How Do They Work?

I’m often asked how we use YouTube Ads and I usually give the same response. The biggest benefit is increased revenue, but I don’t always tell my readers that they also get better rankings and more traffic.

YouTube Ads: how do they work?

Each time you create a new ad for your videos you have to upload it to YouTube. It’s really simple and anyone can do it.

You can create your ad right on your video or you can go to an ad management system, like Campaign Manager or Ads Manager. I’ve tried both and I use Ads Manager and love it.

Let’s start with how to create a new ad. I use Ads Manager so I will use this example. When you go to create an ad there are a few different ways you can create an ad. 

First, click the Add Button. This is your top option.

The next two ways are a little different. The first is under the ad type section of your account. Click the plus sign (+). It’s near the top.

This is also a great place to change the type of ad you’re using. The last section is the bidding option. Let’s keep it simple for now.

Your first ad.

Now for the video that will be in your ad. Once you have everything you want on your video click the green Create ad button. 

You’ll get a page full of information about your ad. When you are happy with the video, preview it and then press the Create button. Now you have an ad.

Add your ad to a video.

How do I create an ad?

That’s all there is to it. You create your ad and it can take anywhere from a few seconds to a few minutes to approve the ad and get it going. 

Once it is approved and you’ve placed it in a video, you can test your ad by changing the settings and previewing it. 

You can also change the video in the settings area if you decide that is what you’d like to use.

Why would I do this?

Well for starters it would be free advertising. You could also add in a call to action and get a few leads on your business. 

It’s important to note that this is not a substitute for your other advertising but it is a great way to get your name out there and drive traffic to your page.

This is a lot different than Ad Words, which is a paid method of getting traffic to your site. With this method, you are paying for a slot on the video where your ad will show. You also have other ads in your ad group that could also show. 

The reason I’ve included all of this information is that you can have your cake and eat it too. You pay for your video slot but also have the ability to test and change ads to see what the best results are for your business.

With some of the best-performing content on the platform, YouTube Ads allow you to create ads that are based on the videos that your audience is most engaging with.

When people engage with your video, they become video subscribers and view a lot of your content. This means that the more people engage with your videos, the more they'll view the ads you're running.

The type of ads you'll see on your channel will be determined by what you advertise on your channel and will be based on the content that you're creating.

Learn more about the types of YouTube ads.

What ads should I create?

Creating ad content that best suits your audience is the most important part of your content marketing.

To get started, you can:

Use the YouTube Analytics tools to understand your audience

Use the YouTube Analytics tools to understand which ad formats work for your audience and budget

Use the YouTube Analytics tools to understand which audience demographic(s) should be your target

Use the YouTube Ads settings to determine how the type of ads you will be displaying.

What types of ads should I run?

For most channels, the following types of ads will provide the best results.

Ad formats you can use include:

Auto-play video ads - These appear at the start of a video, play for the length of the video, and then disappear.

- These appear at the start of a video, play for the length of the video, and then disappear. Auto-play rich video ads - These appear at the start of a video and play continuously. They start with a small snippet of video and grow to fill the entire screen. You can also include content directly into the ad.

- These appear at the start of a video and play continuously. They start with a small snippet of video and grow to fill the entire screen. You can also include content directly into the ad. Sponsored content ads - These appear as a banner or text-only ad that shows specific content.

YouTube offers a range of different types of ads. The most appropriate ads for your business depend on the type of audience you are targeting.

Which audience should I target?

The best way to determine which audience is best for your business is to research on YouTube. A useful place to start is the YouTubers Channel. 

You can search the YouTubers Channel by topic. You can also search for the most popular YouTube channels for your particular type of business.

For example, if you are a digital agency, you could look at what digital agencies are producing. 

You can also look at the comments on videos, where users provide their thoughts and observations. You can also search for similar channels that fit your niche.

The first three methods are all free and have their advantages. We’ll go into the last three methods in detail next week. Stay tuned.