Did you know Youtube saw a 25% YoY increase in ad revenue from 2020 to 2021?

Youtube has over 2 billion active users and reaches people of all ages and demographics. It’s the perfect platform to expand your reach and engage your audience in an affordable way.

There are 5 main types of Youtube ad formats to choose from. In this blog post, we’ll cover what those are, how they work, and how you can use them for your business.

How to Buy Youtube Ads

There are 2 ways to run advertising on Youtube — via Google Ads or via DV360 (display and video 360).

Both are online advertising platforms created by Google, but Google ads is easier to use and access for smaller business or agencies. DV360 is designed for larger advertisers or agencies with bigger advertising budgets. 

If this applies to your business, you can find out more about setting up a DV360 account by contacting a Google representative.

Skippable Ads

Skippable ads on Youtube are pre or mid-roll video ads that a user is able to skip after 5 seconds. 

These are one of Youtube’s Trueview ad types, meaning you’re only charged when someone watches at least 30 seconds of the video, or the whole ad if it’s under 30 seconds. This is also known as cost-per-view (CPV) buying.

The video ads are also accompanied by a display banner ad at the top right of the screen, which remains even if the user chooses to skip the ad.

Non-Skippable Ads

Non-skippable ads are also pre or mid-roll video ads, but with 2 key differences. There is no skip button, and the ads are charged on a CPM basis, meaning cost per mille/thousand impressions. 

These videos must be between 6 and 15 seconds. You may have up to 20 seconds available if you’re running ads in certain parts of the world (India, Malaysia, Mexico, Singapore, or EMEA).

Bumper Ads

Bumper Ads on Youtube are 6-second, non-skippable ads that can run pre, mid, or post-roll. They’re bought on a CPM basis.

Despite being only 6 seconds in length, these ads can be highly effective for ad recall and maintaining brand visibility. Curious about how to run effective bumper ads? Find out more in this article.

Overlay Ads

Most YouTube ad formats are video ads, but Overlay ads are a bit different. They’re another Trueview Format, but they are image or text display ads that appear on top of a video.

They’re desktop-sized banner formats (468×60 or 728×90 options), so they only show on computers in the lower 20% of a video.

Discovery Ads

Discovery ads are similar to search ads — they appear within search results or video watch pages on Youtube.

They’re thumbnail images accompanied by 3 lines of text and are highly visible due to looking native to the YouTube Platform.

Understanding YouTube Ad Formats

So now you understand the 5 main types of YouTube ad formats — skippable, non-skippable, bumper, overlay, and discovery.

Youtube can be used effectively regardless of your industry, target audience, or advertising budget, and we hope this inspired you with YouTube advertising ideas for your brand.

Read our blog to discover more useful media and marketing tips that you can apply today.