How to Make YouTube Ads: Everything You Need To Know

April 13, 2023

Making YouTube ads can be a great way to promote your business. But it's not as simple as uploading a video and pressing "publish."

There are many things to consider if you want to make effective YouTube ads that will reach your target audience.

In this article, we will discuss some tips, tricks, and strategies for making successful YouTube ads.

What are YouTube Ads?

YouTube Ads are short video ads that appear before, during, or after other videos on YouTube.

It is a way for businesses to promote their products or services on the world’s largest video-sharing platform.

They can be up to 30 seconds long and include a call-to-action overlay that appears on the bottom 20% of the video (viewers can choose to skip the ad after five seconds).

Ads can appear in two different places on YouTube:

  • Before a video starts playing (pre-roll ads)
  • As an overlay on the video during playback (mid-roll ads)

You can also create “bumper ads,” six-second, non-skippable videos that play before a YouTube video.

More on this later.

Benefits of YouTube Advertising

Benefits of YouTube Advertising

There are many benefits of advertising on YouTube.

First, YouTube has more than 2.5 billion monthly active users — second only to Facebook, with almost 3 billion users. YouTube’s enormous number of users gives you a large pool of potential customers to reach.

Statistic: Most popular social networks worldwide as of January 2022, ranked by number of monthly active users (in millions) | Statista
Find more statistics at Statista

Second, YouTube is a highly visual platform, which means you can show off your products or services creatively and engagingly.

Third, YouTube ads are affordable, especially compared to other forms of advertising such as TV or print ads. Finally, YouTube ads effectively drive results, such as website traffic and sales.

Types of YouTube Video Ads

Types of YouTube Video Ads
YouTube Ads Types

There are several different types of video ads that you can run on YouTube, including:

  • TrueView In-Stream Ads image check
  • Non-skippable in-stream ads image check
  • TrueView Video Discovery Ads image check
  • Bumper ads image check
  • Sponsored cards image check
  • Collection ads image check
  • Overlay ads image check
  • Display ads image check
  • In-search results image check
  • Outstream ads image check
  • Masthead ads image check

In this section, we'll explain it all to help you find out which one is right for your needs.

TrueView in-stream ads

TrueView in-stream ads

TrueView in-stream ads are skippable video ads that run before, during, or after other videos on YouTube.

Skippable in-stream ads can be up to 12 hours long, but they must be at least 30 seconds long. TrueView in-stream ads give you more control over where your ad appears and who sees it.

You can target by topic, interests, demographics, and remarketing lists. You can also exclude people who have already seen your ad.

These ads are best for awareness and reach, as many people can see them.

Non-skippable in-stream ads

Non-skippable in-stream ads

Non-skippable in-stream ads are similar to skippable in-stream ads, but viewers cannot skip them.

These ads are also called "pre-roll" or "mid-roll" ads, depending on when they appear in the video.

These ads must be 15 seconds or shorter, and they can appear before, during, or after the video.

You can use non-skippable in-stream ads to reach a broad audience with a message you cannot skip.

You can also click the + icon and select “See video creative reports” to get detailed information about your ad, including how often people saw and interacted with it.

TrueView Discovery Ads

TrueView Discovery Ads appear on the YouTube homepage, related videos, and search results pages.

They can appear on desktop, mobile, and TV screens, so they’re a great way to reach your target audience no matter where they are.

They can take the form of a video ad, image carousel, or collection ad. Here are some tips for creating discovery ads that work:

  • Keep your ad short and sweet.
  • Use strong visuals. Since discovery ads are about getting people to click through to your video, you need to ensure that your thumbnail image and headline are eye-catching and relevant to your video content.
  • Use keywords wisely. Ensure that your ad appears in front of them using relevant keywords in your title and description.
  • Target your audience.

If you follow these tips, you'll be well on creating discovery ads that work.

Collection ads

Collection ads are a new type of ad that YouTube introduced in 2018.

They allow you to showcase multiple products (both physical and digital) in a single ad.

Here are some tips for creating collection ads that work:

  • Use high-quality images. 
  • Use persuasive copy. 
  • Use an enticing CTA. 

Bumper In-stream Ads

Bumper ads on youtube

Bumper ads are short, non-skippable video ads that viewers must watch before watching the main video. They can be up to six seconds long.

Here are some tips for creating bumper ads:

  • Keep it brief and straightforward.
  • Make use of powerful visuals.

Think about what you want to achieve with your bumper ad before you start creating it. Remember that bumper ads are best used to raise awareness or drive consideration rather than generate sales.

The most important thing to remember with bumper ads is that they must be engaging and relevant to your audience. 

If you can capture their attention and deliver a clear message, you’ll be on your way to creating successful bumper ads.

Sponsored Cards Ads

Sponsored cards are interactive video cards that show up during a YouTube video to promote a product or service related to the video content.

There are a few things to keep in mind when creating a sponsored cards ad:

  • Make sure the product or service you're promoting is relevant to the video content.
  • The ad should be short and to the point.

By following these tips, you can create an effective sponsored card ad that will promote your product or service while relevant to the video content.

Overlay ads

Overlay ads are semi-transparent image or text ads that appear on the bottom 20% of a video.

If you want to create great overlay ads, here are a few things you should consider doing.

  • Use images that are relevant to your brand
  • Use high-contrast colors for the text to make it readable
  • Stick with a logo or short phrase
  • Make sure the ad is placed in an easily visible spot on the screen
  • Keep track of your click-through rate (CTR) to see how effective your ad is 

Overlay ads are a great way to advertise on YouTube because they are less intrusive than other ads yet still highly visible. 

If you keep the above tips in mind, you can create great overlay ads that will help promote your brand and drive traffic to your website.

Display Ads

Display ads are banner ads that appear on the right side of the YouTube watch page. They come in two sizes, small and large.

The small size appears on the right side of the YouTube watch page, above the "Up Next" video.

The large size appears between the "Up Next" video and the related videos.

You can use display ads to target people based on their interests, demographics, and even what they're watching on YouTube.

Write about tips on creating the best display ads

  • Use high-quality images
  • Use short, catchy headlines

In-search Results

In-search results are video ads that appear in the search results when someone is looking for a specific term on YouTube.

Outstream Ads

Outstream ads

Outstream ads are video ads that appear on websites and apps that partner with YouTube but not on YouTube itself.

When creating outstream ads, consider the following tips:

  • Use subtitles. Outstream ads autoplay without sound, so ensure your message can be understood even if someone doesn’t have the volume on.
  • Think “mobile-first.” Outstream ads are designed to be watched on a small screen, so keep that in mind when creating your ad.

Masthead Ads

You can buy YouTube masthead ads, which appear at the top of YouTube’s home page.

Masthead ads are available on a first-come, first-served basis, and you can buy them through Google Ads.

To be eligible to buy a masthead ad, your campaign must meet specific requirements, including:

  • A daily budget of at least $200
  • An ad schedule of at least five days
  • At least two million views in the last 28 days
  • Campaigns that target only specific countries are not eligible to buy masthead ads

Tips on creating outstream ads:

  • Keep it short and sweet: Outstream ads can be up to 30 seconds long, but shorter is better.
  • Use eye-catching visuals and engaging audio: Since outstream ads appear on websites and apps outside of YouTube, you’ll need to grab people’s attention quickly with strong visuals and engaging audio

Doing all of the above will help you create outstream ads that are effective and drive results for your business. 

How To Make YouTube Ads in 7 Easy Steps

YouTube is a powerful channel for advertising. It’s the second largest search engine after Google. That means there are a lot of potential customers searching on YouTube every day.

Creating a video ad and running it on YouTube can effectively reach your target audience and achieve your marketing goals. 

Now that you understand the different types of YouTube ads and how they work, here are six easy steps to follow to create a YouTube ad:

  1. Create Google Ads Account
  2. Pick your video
  3. Create an ad
  4. Choose where to place your ad
  5. Select your target audience
  6. Set your budget
  7. Measure your results

1. Create Google Ads Account

The first step is to create a Google Ads account if you don’t already have one. Once you have a Google Ads account, you can link your YouTube channel to your Google Ads account.

Learn more: How to Create a YouTube Channel 

2. Pick Your Video

Pick Your Video for youtube ad

The next step is to set up your ad campaign by first picking the right video.

Your video should be:

  • Relevant to your target audience
  • On-brand
  • Compelling

3. Create an Ad

create youtube ad

Once you’ve selected your video, it’s time to create your ad. When creating your ad, you’ll need to consider:

  • Your video thumbnail
  • Your headline
  • Your call to action (Button Label)

4. Choose Where to Place Your Ad

Once you’ve created your ad, you must decide where it will run. There are three prominent placements for YouTube ads:

  • In-stream
  • Discovery
  • Bumper

5. Select Your Target Audience

Select YouTube ads target audiece

Now that you know where your ad will run, it’s time to select your target audience. When targeting your audience, you can consider:

  • Demographics
  • Interests
  • Behaviors

6. Set Your Budget

Youtube ads budgeting

The next step is to set your budget. When setting your budget, you’ll need to consider:

  • Your ad goals
  • Your target audience
  • Your video quality

Once your ad is created, it will go through an approval process. And when it's approved, your ad will start running according to your schedule.

7. Measure Your Results

youtube ads performance report

The final step is to measure your results. You can track the performance of your ad by looking at the metrics in your Google Ads account, which includes:

  • Video analytics
  • Conversion tracking

Learn more: How to use YouTube Analytics

Tips for Optimizing Your Video Ads

Now that you know how to create a YouTube ad let’s discuss some tips for optimizing your video ads.

  • -Test, test, test
  • -Keep it short
  • -Use expressions and emojis
  • -Tell a story
  • -Include a call to action 

Testing, Testing, Testing

Testing, Testing, Testing

One of the most important things you can do when creating a video ad is test, test, test.

You should test different aspects of your ad, such as:

  • -Your headline
  • -Your description
  • -Your call to action
  • -Your target audience 

Keep It Short

When it comes to video ads, shorter is almost always better. You have a brief amount of time to capture your viewer’s attention, so you must ensure that your ad is straightforward and to the point.

Use Expressions and Emojis

Use Expressions and Emojis

Another tip for creating an effective video ad is to use expressions and emojis. People are more likely to watch an entertaining and engaging ad, so using expressions and emojis can help make your ad more successful.

Tell a Story

tell a story on youtube

You should also try to tell a story when creating your video ad. Your ad should have a beginning, middle, and end.

Telling a story will help capture your viewers' attention and keep them engaged.

Include a Call to Action

Call to Action

The last tip for creating an effective video ad is to include a call to action. Your call to action should be clear and concise.

It should tell your viewers what you want them to do, such as “click here to learn more” or “watch now.” 

Following these tips, you can create a compelling video ad to help you achieve your desired results.

FAQs: How to create YouTube Ads

How much does it cost to make an ad on YouTube?

The cost of making a YouTube ad depends on a few factors, such as your ad's length and target audience.

Can you make a YouTube ad for free?

You can make a YouTube ad for free using the Google AdWords platform. You will need to create a Google AdWords account and create your ad using the “create new ad” button.

You can also use other video editing software to create your ad, which will likely cost money. If you want to create a professional-looking ad but have little-to-no editing experience, you can always invest in video makers to make it easier for you.

Once you’ve created your ad, you will need to choose where you want it to run. You can target your ad by location, demographics, interests, and more.

You can also choose how much you want to spend on your ad campaign. You can set a daily budget and a maximum cost-per-click (CPC).

What are the Benefits of YouTube Advertising?

The benefits of YouTube advertising include increased brand awareness, reach, and engagement.  Additionally, YouTube advertising can lead to sales and conversions.

How much do 30-second YouTube ads pay?

The amount you can earn from a 30-second YouTube ad varies greatly depending on several factors, including:

  • The number of subscribers you have and how many views your videos get.
  • The location of your viewers.
  • The type of ad you run.

In general, however, you can earn between $0.01 and $0.03 per view. If you have a video with 100,000 views, you could make anywhere from $1000 to $3000 from YouTube ads.

Of course, many other factors can affect how much you earn from YouTube ads. For example, if your video is longer than 30 seconds, you may be able to charge more per view. 

Additionally, if your video is viral or if it is part of a series, you may be able to negotiate a higher rate.

The best way to find out how much you can earn from YouTube ads is to contact a representative from YouTube and ask. 

They will be able to give you a more accurate estimate based on your specific situation.

Do non-skippable ads pay more?

No, non-skippable ads don't necessarily pay more. However, they can be more effective because viewers can't skip them. If you want to create an ad that will reach as many people as possible, a non-skippable ad may be the way to go.


YouTube advertising effectively reaches out to potential customers on the world’s largest video platform. It allows businesses to show their products or services creatively and engagingly.

With over two billion monthly active users, YouTube provides advertisers with a massive audience.  Furthermore, with over a billion hours of video watched every day, there are plenty of opportunities for businesses to reach their target audiences.

Now that you know how to make a YouTube ad, it’s time to get started! Follow the tips and tricks in this article, and you’ll be on your way to creating successful YouTube ads in no time.

And if you need an easier way to make YouTube Ads videos, you can always use our Ad Maker — no prior editing experience is required! 

The best part? You can do it all in under 3 minutes! Sign up today and experience a much more intuitive advertising experience.

Happy advertising!

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