YouTube is a video-sharing platform launched in 2005 and has gained enormous traction ever since, making it the second most-visited website in the world, following its parent company Google. The social media platform has more than 2 billion logged-in users monthly and since accounts are not required to view videos on YouTube, the actual monthly viewers would be much higher. YouTube advertisements can be viewed on mobile devices, desktops, TVs, and gaming consoles in different formats. The advertisements are shown on the video playing and are usually videos.





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Types of YouTube Advertisements

Video Ads (In-Stream)

Ad Placement:

  • Pre-Roll: Video advertisement that automatically plays before the main video is shown

  • Mid-Roll: This is the advertising placement viewers would mostly see since there could be multiple mid-rolls in a single video. Mid-rolls can be placed in a video that is over 10 minutes long. There are automatic placements for the advertisements that estimate the best number of mid-rolls and ad placements. Ad placements of mid-rolls can also be manually chosen by the creator of the video.

  • Post-Roll: Like pre-rolls, they are video advertisements that automatically plays but is played when the main video ends. 

Types of Video Ads:

  1. Skippable Ads: An advertisement that is longer in length but gives users the option to skip the ad after 5 seconds. They can be shown in all platforms which is able to view YouTube. The advertisement must be 12 seconds to 6 minutes in length.

  2. Non-skippable Ads: A video advertisement that cannot be skipped and must be viewed before proceeding to the main video. A maximum of 15 seconds can be played in non-skippable ads. They can be shown in all platforms which is able to view YouTube.

  3. Bumper Ads: A short video advertisement up to 6 seconds which is not skippable. Bumper ads can be pre-rolls, mid-rolls, or post-rolls. It quickly gives viewers a memorable impression of your brand. They can be shown in all platforms which is able to view YouTube.

Image Ads

Overlay Ads: Image or text which overlays the video, appearing only on the lower 20% portion of a video. Overlay ads are static images and can only be displayed on the desktop version of YouTube. 

Website Video Ads

  1. Video Discovery Ads: It can appear on the YouTube homepage, show up as a search result or next to related videos. It has the appearance of ordinary YouTube videos but with a yellow tab that shows “ad”. It can target viewers who are interested in related topics and allow your advertisement to show up more. You will only be charged when users decide to click on your video advertisement to view the entire video.

  2. Masthead Ads: Your video advertisement would be played on the top of the YouTube Home feed without the sound, 30 seconds would be played if the advertisement is displayed on a desktop and the full length of the video would be played on mobile applications or TV screens. Since it is displayed on the homepage of YouTube, it would get much more exposure than other types of YouTube advertisements.

YouTube Advertising Cost

In-Stream Video Ads: The advertising cost of in-stream video ads is determined by the number of views (CPV) or impressions (CPM). It approximately costs USD $0.1-$0.3 (HKD $0.78- $2.34) per view, which is counted when someone watches 30 seconds of a skippable ad or interacts with your advertisement.

Bumper Ads: Bumper ads charges in accordance with impression, and CPM is used to measure the advertising cost; It costs around USD $1-4 (HKD $7.78- $31.13) per thousand impressions.

Discovery Ads: Discovery ads are charged according to cost-per click (CPC), the number of times people click into the video shown in the discover page, which is about USD $0.3 (HKD $2.34) per click.

Masthead Ads: Masthead ads has the highest exposure and naturally costs the most. It is also charged on a CPM basis, costing an average of USD $300,000-$400,000 in total.

Why Advertise on YouTube?

  1. Interactive video ads: YouTube has integrated different actions for users that are tailored to your specific advertising goals. Exclusive features such as end cards and end screens which showcase different products and services or other videos you have, to encourage further engagement with your advertisement. These can easily be created with YouTube’s advertising management system.

  2. YouTube as a search engine: YouTube has evolved beyond being simply a video sharing platform after more than a decade, people use YouTube not only to watch specific videos, but they also use it to search certain topics or find a solution to their questions. This brings viewers interested in different topics to the platform and helps you target your audience. Furthermore, since it is used as a search engine, it brings non-regular users to YouTube and increases the exposure of your ad.

  3. Content targeting: You could determine how or where your advertisements would be shown, you could target your audience by using type of placements, topics, keywords, or devices. You have probably heard the term “YouTuber”, a now more common career path. These people usually have a certain following and advertising on their video means their regular viewers would see your advertisement, securing certain exposure for your advertisement. Advertising on YouTube, you can choose certain channels and videos to place your advertisement, instead of being randomised like some other social medias. 

>>> Check out other types of social media advertising