YouTube Ads: The Complete Beginner’s Guide

Want to grow your business with YouTube ads but don’t know where to start? You’re in the right place!

YouTube ads are one of the most powerful ways to reach millions of potential customers. Whether you want to sell products, get more leads, or grow your brand, this guide will teach you everything—from setting up your first campaign to advanced strategies that convert.

By the end, you’ll know:
✔ How YouTube ads work (and why they’re so effective)
✔ Different types of YouTube ads (and which to choose)
✔ Step-by-step setup (even if you’re a beginner)
✔ How much YouTube ads cost (real examples)
✔ Pro tips to lower costs & increase sales

Why Use YouTube Ads?

Before we get into how to run YouTube ads, let’s see why they’re worth it:

✅ 2.5 billion+ users – Huge audience for your ads
✅ Cheaper than TV & Facebook ads – More affordable for small businesses
✅ Highly targeted – Show ads to people interested in your niche
✅ Better engagement – People watch longer than other platforms

If you’re not using YouTube ads, you’re missing out on one of the best ways to grow online.

Types of YouTube Ads (Which One Should You Use?)

There are 6 main types of YouTube ads. Each works best for different goals:

1. Skippable In-Stream Ads (Most Popular)

• What it is: Plays before/during videos (viewers can skip after 5 sec)
• Best for: Brand awareness, sales, website traffic
• Cost: Pay only when someone watches 30+ sec (or clicks)

2. Non-Skippable In-Stream Ads (15-20 sec)

• What it is: Short ads viewers must watch
• Best for: Quick promotions (limited-time offers)
• Cost: More expensive (but guaranteed views)

3. Bumper Ads (6 sec, Non-Skippable)

• What it is: Super-short ads (great for mobile)
• Best for: Reminding people about your brand
• Cost: Low (but needs strong messaging)

4. Discovery Ads (Formerly “TrueView”)

• What it is: Shows as a suggested video
• Best for: Getting more YouTube views & subscribers
• Cost: Pay-per-click (cheaper than in-stream)

5. Overlay Ads (Banner Ads on Videos)

• What it is: Small banner at the bottom of a video
• Best for: Desktop users (mobile doesn’t see these much)
• Cost: Pay-per-click

6. Sponsored Cards (For Products in Videos)

• What it is: Small product images during videos
• Best for: E-commerce brands
• Cost: Pay-per-click

Which YouTube ad type is best?

• For sales: Skippable In-Stream
• For brand awareness: Bumper Ads
• For YouTube growth: Discovery Ads

How to Set Up YouTube Ads (Step-by-Step)

Step 1: Create a Google Ads Account

1. Go to ads.google.com
2. Click “Start Now” and sign in with Google
3. Choose “Create a campaign without a goal” (for full control)

Step 2: Choose “Video” Campaign Type

• Select “Video” (not Search or Display)
• Pick “Custom video campaign”

Step 3: Select Your Ad Type

• Choose Skippable In-Stream (best for beginners)
• Name your campaign (e.g., “Summer Sale Ads”)

Step 4: Set Your Budget & Bidding

• Daily budget: Start with $10-$20/day
• Bidding strategy: “Maximum CPV” (cost-per-view)

Step 5: Target the Right Audience

• Location: Target countries where you sell
• Demographics: Age, gender, interests
• Placements: Choose specific YouTube videos/channels (optional)

Step 6: Upload Your Video Ad

• Use a high-quality video (landscape or square)
• Keep it 15-60 sec for best results
• Add a clear call-to-action (CTA)

Step 7: Launch & Monitor

• Click “Create Campaign”
• Check stats daily in Google Ads dashboard

How Much Do YouTube Ads Cost? 

YouTube ads cost depends on:
✔ Ad type (skippable vs. non-skippable)
✔ Competition (some niches are pricier)
✔ Targeting (broader = cheaper)

Average Costs in 2025:

Example: If you spend $100 on skippable ads, you could get:

• 500-1,000 views
• 50-200 clicks to your website

7 Tips to Make YouTube Ads Convert Better

1. Hook Viewers in the First 5 Seconds

• Start with a question, problem, or shocking fact
• Example: “Did you know 80% of people overpay for car insurance?”

2. Add Subtitles (85% Watch Without Sound)

• Use YouTube’s auto-captioning or upload an SRT file

3. Target High-Intent Keywords

• Use Google Ads Keyword Planner to find buyer keywords
• Example: “Best running shoes for flat feet”

4. Retarget Website Visitors

• Show ads to people who visited your site but didn’t buy

5. A/B Test Different Ads

• Test 2-3 versions to see which performs best

6. Use a Strong Call-to-Action (CTA)

• Tell viewers what to do next:
  • “Click the link below!”
  • “Subscribe for more tips!”

7. Track Conversions with Google Analytics

• See which ads actually drive sales (not just views)

Common YouTube Ads Mistakes (Avoid These!)

❌ Skipping the first 5-second hook (people click away)
❌ Targeting too broad (wastes money)
❌ No clear CTA (viewers don’t know what to do)
❌ Ignoring mobile users (60% of YouTube is mobile)
❌ Not testing different ads (you won’t know what works)

Final Verdict: Are YouTube Ads Worth It?

Yes! If you:
✔ Have a clear goal (sales, leads, or brand growth)
✔ Use engaging video content
✔ Target the right audience
✔ Track & optimize campaigns

Start with $10-$20/day, test different ad types, and scale what works.

Next Steps: Launch Your First YouTube Ad!

1. Sign up for Google Ads
2. Choose a video ad type (start with skippable in-stream)
3. Set a small budget ($10/day)
4. Target a specific audience
5. Upload your video & launch!