How to Setup YouTube Ads


With YouTube 1.5 billion user logging in monthly, over 1 billion hours YouTube videos viewed daily, these are some of the stats that make YouTube the second biggest search engine in the world. So, if you have not taken your business to YouTube then you are missing out. By the end of this guide, you will know how to setup your YouTube Ad and understand how YouTube works.

There are six different types of ads on YouTube:

  • Skippable video ads
  • Non-skippable video ads
  • Sponsored card ads
  • Overlay ads
  • Bumper ads
  • Display ads

Skippable ads (TrueView ads)

This type of ad can be skip by the viewers after 5 seconds. It is said to be the best way to get engagement on YouTube. The best part of this ad is that you only have to pay after the viewer watches your ad for 30 seconds or more, if you are advertising on a budget it is recommended you use this type of ad. Skippable ad is in two formats;

  • In-Stream ads: This ad format displays in YouTube videos, apps, games and videos in Google’s display network. It has a maximum video length of 3 minutes and minimum of 30 seconds. It is advisable to make your video as short as possible because it can be skip by the viewers.
  • Discovery: This ad format displays in YouTube search results, YouTube app homepage, YouTube videos, video overlays and related overlays. The videos for this ad formats does not have any length limit (i.e. your video can be as long as you want). Any click on the videos overlay banner or thumbnail goes to your website.

Skippable ads (TrueView ads) reach a wide audience as your ad shows in all platform listed on Google display network depending on which format of skippable ad you choose. If you making the ad for people to take action you can add a call to action button to your In-Streams ads. If you are making your ads for reach, you can use TrueView for Reach CPM (cost per 1,000), this means that you pay when your ad video reach 1,000 views. To be able to use this option your ad must be between 6 to 30 seconds.

Non-Skippable Ads

Non-skippable are paid for on a CPM (cost per 1,000) budget. This type of ad is not popular because they can be annoying and intrusive. Non-skippable ads have a 15 to 20 seconds limit.

Sponsored Cards ads

Cards ads are small pop-ups image or text that are set to appear within the YouTube videos. You can add them on both mobile and desktop view of YouTube. They are not intrusive and only expand to full size when they are clicked on by the viewer. They can de inform of a small label or a small information icon (i) and they sometimes followed by some call to action that appears when the user hover over it.

Overlay ads

are banner ads that often show at the bottom of a video. They can be an image banner or text ads.

Bumper ads

These are 6 seconds non-skippable ads, it is charged per CPM. They are mostly view on mobile.

Display Ads

These are the videos that are display above the suggested videos in YouTube. This type of ads can be manage on Adwords. If you don’t know about Adword read it here (add hyperlink to the Adword tutorial here).

How to set up your first video ad campaign

Before you continue to set up your first video ad campaign, you need to upload your ad video to YouTube.

  • Log in to your YouTube channel.
  • Go to and click on “Get started with AdWords for Video” button.
  • Select your time zone and your preferred currency.
  • Enter a name for your campaign.
  • Click “sign in to your AdWords” on the confirmation page.
  • Fill in your username and password for your YouTube account.
  • Enter the amount for your daily budget (i.e. the amount you want to spend daily on your ad campaign).
  • Click on the “select video” button.
  • Choose the video that you wish to use for your ad campaign.
  • Write your ad text, this contains the headline with a maximum length of 25 characters and descriptions with two lines and 35 characters per line.
  • Select the thumbnail for your video ad.
  • Write your website URL of the website you want to promote in the “Display URL field”. Click “save and continue”.
  • Create a new targeting group. Give your targeting group a name.
  • Select a maximum “cost per view” amount. This is how much willing to pay for each time a viewer watches your video.
  • Enter three or four keywords for the “Search for Targeting Suggestions”, then click the “get targeting suggestions” button. Click the “expand link” next to each suggestions and click the add button.
  • Click “save and enable targeting” button to start your ad campaign.
  • Enter your billing information. This is where Google charge you for your ad.
  • Your ad is ready.

Note: You can set up multiple targeting groups for your ad to get maximum result.