Ranked as the second most visited website in the U.S., YouTube presents an unparalleled opportunity for businesses to invest in advertising. The platform’s vast user base offers a global reach, making it essential for companies seeking to enhance their online presence. With billions of active users worldwide, your business can tap into a highly engaged audience through YouTube ads, provided they are crafted to captivate viewers. More insights on this will be shared later. YouTube advertising involves investing in promotional content on the platform.Businesses can create and manage their YouTube ads through the Google Ads platform. This form of advertising encompasses more than just video content, as detailed in this article.While you can upload content to YouTube at no cost, advertising on the platform allows for paid promotions. Moreover, video content is not mandatory for YouTube advertising. An organic YouTube strategy relies solely on video content and SEO to expand your presence on the platform.YouTube SEO plays a crucial role in enhancing visibility within search results. 
In contrast, YouTube advertising offers a range of ad formats designed to effectively target your audience. Unlike SEO, which focuses on increasing visibility, YouTube advertising emphasizes precise audience targeting. Campaigns are managed through Google Ads, differing from an organic strategy that primarily relies on the platform itself for success.YouTube ads can be categorized into two main types:
Video ads
Non-video ads
Contrary to popular belief, YouTube advertising is possible without video content. We will delve into the various video ad options available now.In-stream adsThese ads are displayed within the video you are watching and can be either skippable or non-skippable. Non-skippable ads run for up to 15 seconds, whereas skippable ads last for five seconds before viewers can choose to skip them. 
Non-skippable ads have a maximum duration of 15 seconds, while skippable ads are viewable for only five seconds until the viewer can opt to skip them.Bumper adsThese YouTube ads are non-skippable and have a duration of less than six seconds.
Similar to in-stream ads, they play when a user opens a video. 
Video discovery adsThis ad format blends elements of both video and non-video ads, resembling a regular YouTube video with an ad tag. Users must click on the ad to watch the video. These ads appear in search results, within related videos sections, or on the YouTube mobile homepage. 
Video discovery ads are visible in search results, the related videos section, or on the YouTube mobile homepage.Overlay ads These ads appear when a user is watching a video on their desktop, covering a small portion of the video player at the bottom. 
Display adsThese ads are visible near the suggestions list when watching a video and are present on both desktop and laptop computers. 
Understanding the payment structure for YouTube ads is essential when learning how to advertise on the platform. YouTube, like many digital advertising platforms, employs a bidding system to determine ad costs.Based on the type of ad you wish to run, you have several bidding options:
Cost-per-view (CPV): Payment is incurred when someone watches 30 seconds or the entire duration of a shorter ad. Interaction with your ad, such as clicking a link, also counts towards CPV.
Cost-per-thousand impressions (CPM):Payment is made for every 1000 impressions of your ad.
Cost-per-action (CPA): Payment is due when someone takes an action, such as clicking a link to your website, from your ad.
As YouTube is owned by Google, ads are managed through the Google Ads auction system. The cost of your ads will be influenced by various factors, including your bid, competition, and the relevance of your ad to the user. On average, businesses spend $0.10 to $0.30 per view or action on their YouTube ads, though numerous factors can affect this figure.With Google, you can set a budget that suits your needs and adjust it as required to maximize your return on investment in digital advertising.Similar to selecting the appropriate ad type for your YouTube campaigns, you can also choose the audience you wish to target. Targeting can be based on:
Demographics
Interests
Previous interactions with your website or YouTube videos
Buying intent
First-party data
First-party data is information collected from your customers and is typically stored in a customer data platform (CDP). If you have a rewards program, the list of emails from program participants would be considered first-party data.Remember to inform individuals about how you will use their data when you collect it.If you plan to use a video for your YouTube ads, it must be hosted on YouTube. When creating your ads, you will include a link to the relevant YouTube video. For tips on creating engaging video ads, refer to our blog post on the subject.Create your YouTube channel To upload a YouTube video, you need a YouTube channel.Creating a channel is as simple as setting up a Gmail account. You can easily create a channel by signing in to YouTube with your business’s existing Gmail account and selecting “Create a channel.” 
You can optimize your video title, description, and tags with keywords to maximize reach and even create an engaging thumbnail for those who find it in YouTube search results. Next, let’s proceed with the actual ad creation process.Initiate your YouTube ad campaignAs previously mentioned, you set up YouTube ads through Google Ads. Upon logging into Google Ads, click the “New Campaign” button to begin. 
Google Ads will then prompt you to select a campaign goal.Select your campaign goalFor video campaigns, you can choose from:
Leads
Sales
Web traffic
Product and brand consideration
Brand awareness
Different ad types may require different goals, so ensure you are aware of the campaign type you wish to utilize (e.g., video discovery or bumper ads). After selecting your goal, you will choose the type of campaign you
