To be honest, deciding which ad format to choose has become a crucial factor in today’s highly competitive environment. There are a number of factors you need to consider, all at the same time: what do you want to achieve with the ad (direct sales, consideration, brand awareness, etc.), and how much are you looking to spend for the campaign (not forgetting about brand reputation and many other important nuances). You need to get these things sorted before you even launch the first ad.
In this article, we’ll take a detailed look at different types of YouTube ads, explore the new campaign settings in Google Ads, and find out why some ad types have become even more effective.
Quick Look at YouTube Ad Formats
When it comes to managing YouTube ads, you need to think about data-driven marketing, where every move you make has to be carefully thought out. And thanks to AI, algorithms can actually suggest which ad format will deliver the best return on investment for your business at any given time.
How Do YouTube Ad Algorithms Work?
At the moment, the YouTube Ads algorithms match up viewer intent with your business goals. So it’s no longer just a case of showing ads. The system tries to predict viewer behavior and what they are interested in.
There are just 3 main things that underpin the modern YouTube Ads algorithm:
- Viewer Intent Analysis: The algorithm uses information from Google Ads (search queries, purchases, geolocation, etc.), which helps to understand the context of future ads. So if a user watches a video on a mobile device, the algorithm will suggest short bumper ads. If they watch on YouTube TV, the algorithm will suggest non-skippable ads or long in-stream ads.
- Engagement signals: The algorithms are super sensitive to the quality of your content. If your skippable video ads are watched all the way through without users clicking the skip button, the system will lower the cost per view for that campaign. On the other hand, irrelevant ads will quickly start losing reach and become more expensive.
- Automatic Ad Format Selection: Because of the integration of AI into the algorithms, you can just upload one video creative, and the algorithm will decide on its own whether to show it as a non-skippable in-stream ad or maybe turn it into a feed video in search results. This means you can reach viewers in a broader way without wasting time on making manual adjustments.
The combo of YouTube algorithms and advertising has really become more effective. That’s building the trust in Google’s automation and making it easy to put your business plans into action at minimal cost. The algorithms will find the ideal for your ads on their own, turning casual viewing into targeted action.
Main Types of YouTube Ads: A Quick Overview
If you want to effectively plan your budget for YouTube Ads, you need to understand the differences between the key ad formats. The platform offers 5 main types of ads, which we’ll compare below:
- Skippable in-stream ads: The basic ad format on YouTube Ads, which viewers can skip. This type of ad is a great way to pay only for genuine interest in your video.
- Non-skippable in-stream ads: This format guarantees that your video will be watched in full for 15–20 seconds. It’s a great option when you need to get your message across in its entirety without the option to skip.
- Bumper ads: Short but effective 6-second ads. The best format for mobile devices, where user attention is scattered and limited.
- In-feed ads (formerly Discovery): This format allows your video to appear in search results or on the homepage when a user is looking for new content.
- Masthead ads: The most powerful format for global reach. These ads are pinned to the homepage and allow brands to get millions of views in a matter of hours.
It’s only when you understand these formats that you can start guiding users from interest to purchase or another desired action. Once you’ve got your head around the structure and formats of YouTube ads, you’ve made the first step toward achieving the result you want. And from there, we’ll help make things even better!
In Stream Ads vs. Non Skippable In Stream
Choosing between these two types is the eternal dilemma between getting users to stick with your ad and making sure they watch your video from start to finish. The key difference comes down to this: do you give viewers the option to skip the ad, or do you insist they watch your video in its entirety?
Skippable in-stream ads are a classic ad format that is embedded within other YouTube videos. The main feature is the skip button, which appears after 5 seconds. If the user clicks “skip ad,” you often don’t pay for that lead.
Non-skippable in-stream ads are video ads that can’t be skipped. They last between 15 and 20 seconds and can appear before, during, or after the main video, ensuring that your video creative is seen and not missed.
Viewer Experience & How It Stacks Up
Viewers got used to consuming content quickly. With skippable video ads, users feel that their time and choices are respected: if the ads aren’t interesting, they can quickly close them. That’s a good filter, as only people who are genuinely interested in your video will stick around.
With non-skippable in-stream ads, you’re basically taking 20 seconds of someone’s time. If these ads lack value, it’s gonna leave a bad impression of your brand. But for brands launching a global sale, this is the only way to ensure that a message gets to the right people. Often, these sorts of ads stick in your head and literally drive you to the idea that “I need to buy this.”
Choose skippable ads when your goal is new leads and sales. Thanks to Google Ads, you can pay on a cost-per-view basis, which makes these ads budget-friendly and great for performance marketing.
Prefer non-skippable ads when you need mass reach and precise message delivery. In campaign settings, you pay per 1,000 views (CPM) so you can plan your budget down to the penny when you’re trying to reach a lot of people.
Bumper Ads vs. Non-Skippable Ads
You might be thinking these two formats are pretty similar, but they serve totally different purposes in your video campaigns.
Bumper ads are short, 6-second promotional videos. At the moment, this format is considered the most effective tool for increasing exposure when content is viewed primarily on mobile devices.
Non-skippable video ads are a full-fledged format for storytelling. You’ve got 20 seconds to identify a problem and propose a solution. So you really need to have high-quality production to keep viewers engaged.
How to Use Them & Charging Model
Experienced YouTube advertisers never use these ad formats on their own. Bumper ads work really well as a “supplement.” For example, you might start with long in-stream ads and then “catch up” with users using short bumper ads to remind them of your offer. If you need to quickly promote a new product, 15-second non-skippable ads will work better.
Both formats on the Google Ads system operate on a YouTube CPM rates basis. This means you pay per 1,000 impressions. When it comes to grabbing people’s attention, bumper ads are often the cheaper option, allowing you to reach people for less money than longer non-skippable formats.
Feed Video Ads vs. Demand Gen
This section focuses on video ads that don’t interrupt the viewing experience but subtly draw the viewer’s attention.
Discovery ads (now called feed videos) are a type of ad that people find on their own in YouTube search results, in the “Up Next” feed, or on the YouTube mobile homepage. Unlike in-stream ads, here the viewer clicks on the preview if they want to and are interested in your offer. You need to focus heavily on YouTube SEO (you can even follow the tips we’ve provided in the link) if you want to make this ad format work
Demand Gen (Generation) is a new campaign type in Google Ads that uses YouTube videos, the Discover feed, and Gmail. The main feature is the combination of YouTube and AI to find a target audience similar to existing customers. These ads can contain loads of videos and images, which the system automatically combines to achieve a better CTR.
A quick tip: In the video feed, clicks are everything, so your YouTube thumbnails are 80% of your success. Use high-quality images, include people showing emotion, keep your channel’s style, and check the previews on mobile.
YouTube Shorts Ads & UGC
Thanks to the Shorts format and the fact that most modern video campaigns are being viewed on Shorts, the rules of the game have changed. With the increase in 3-minute Shorts lengths, this has opened up an opportunity to advertise products or services more effectively than before.
Even though Shorts has made all these technical changes, video ads lasting between 15 and 60 seconds are still the most effective in the YouTube Ads system. So if your ad video is too long, people will simply skip it, which is bad news for your campaign’s performance.
Why Have YouTube Shorts Ads Become So Effective?
Have you heard of UGC (user-generated content)? The stats show that this type of content in the form of video ads is twice as effective as expensive professional productions. Here are 3 reasons why this sort of advertising really works right now:
- Authenticity: These ads don’t look like typical, pushy advertising at all. As users scroll through their feed, they pick up on your video as just another bit of content in their usual routine.
- Trust: When you shoot your vertical video ads on a regular phone, it can give the impression of a casual recommendation from a friend – so natural and low-key. And you know what? These campaigns show a higher CTR than traditional in-stream ads.
- Affordability: You don’t need to spend a fortune on video creative. All you really need is a solid idea and good lighting.
What are the technical specs for ads on Shorts then? The aspect ratio must be exactly 9:16. Any other formats will be cropped. We recommend using a resolution of 1080×1920 pixels, which gives you standard HD quality that looks great on modern smartphones. Text placement should not overlap the Like button or the description so that viewers can clearly understand the ad message.
Premium and New Formats
If your brand is aiming for market leadership, the standard tools just aren’t going to cut it. The YouTube Ads platform offers a range of premium formats that allow you to reach a massive audience at times when regular video ads aren’t working that well. Some of the new premium formats include:
Masthead
Planning a major sales event or a new product launch? The YouTube Masthead is the most expensive and prestigious ad format that is worth every penny.
How it works: Your promo video plays automatically without sound at the top of the YouTube mobile homepage or on the desktop homepage.
Pros: Guarantees millions of views within the first few hours of launch. Booking a slot is done directly through Google managers, which just goes to show how exclusive and premium these ads are.
Pause Ads
A new ad format was introduced in response to the growing popularity of YouTube TV and smart TVs. And honestly, it was a great move.
How it works: When a user pauses the video, a static or animated banner (or a short video) just pops up on the screen. This is a non-intrusive ad format that doesn’t interrupt viewing but uses the pause to engage the audience further.
Pros: Pause ads deliver strong results in brand awareness, often because of the popularity of YouTube TV. This is an excellent way to integrate promotional videos into passive viewing.
Audio Ads
YouTube is really pushing the boundaries with music and podcasts right now, so the audio ads format has definitely established itself as a new player in the world of advertising.
How it works: These ads are designed to reach users who aren’t actively looking at the screen but are listening to video content or using YouTube Music.
Pros: You don’t have to worry about visuals, which saves money on production. The YouTube Ads system allows you to add a static image with a final URL to the screen to ensure a transition to your website.
Ad Format Requirements
Feeling a bit overwhelmed by all the different ad types and formats? Chill! We’ve put together a handy chart that lists all the ad requirements so you can choose the right format for your needs.
| Format | Aspect Ratio | Recommended Length | Payment Model |
| Skippable | 16:9, 1:1, 9:16 | 30–90 sec | CPV (views) or CPA |
| Non-Skippable | 16:9, 9:16 | 15–20 sec | CPM |
| Bumper | 16:9 | 6 sec | CPM |
| Shorts | 9:16 | 15–30 sec | CPM/CPA |
| In-Feed | 16:9/4:3 | Any | CPC |
Note: Here’s a simple strategy to help you choose. Work out what your advertising goal is. If it’s to increase brand awareness, choose Bumper Ads, Masthead, or Non-Skippable. If it’s to drive consideration, you should focus on Skippable In-Stream or In-Feed. If you’re aiming for action or sales, choose Video Action Campaigns (VAC) in Shorts and Skippable In-Stream.
5+ YouTube Ads Tips: How Not to Waste Your Budget
Fed up with throwing money at ads that just aren’t delivering the results you want? We’re sharing some down-to-earth tips on how to get the most out of your ad campaign.
- Forget about low-performing creatives
Regularly refine your audience targeting to cut out creatives (photos and videos) that aren’t driving conversions so you don’t waste your budget.
- The “Double Hook”
You’ve got 2 seconds to grab the viewer’s attention. But then you’ve got an additional 3 seconds to keep it, or they’ll just click “skip ad”. That way, you won’t waste your budget, and you’ll have time to convey everything that’s important.
- Track TrueView, view rate, CPM, and CPV
In the YouTube Ads system, these metrics are the most important. If your TrueView metrics have a low conversion rate, the algorithm will start showing your video less. Also, constantly monitor CPM and CPV to compare the effectiveness of different ad formats.
- Add Interactive & Shoppable Tags
You can use product feeds to add in clickable product cards & links to your in-stream ads. So users can quickly hop on over to the product they are interested in right away.
- Choose Lo-Fi quality, not a glossy one.
Statistics show that videos shot on a phone give 40% more trust and a greater desire to make a purchase than “perfect” TV commercials. And this makes sense, since creator-generated content comes across as a genuine recommendation rather than a paid campaign.
- Use QR code for Connected TV
When users watch your content on YouTube TV, it’s really a pain for them to click on the video description and search for the links they need. So why not make it easy for them by adding a QR code to your ad integration? This will drive sales.
- Add audio branding (jingles) to integrations
Lots of viewers watch YouTube in the background. That’s why your ads should have a distinct audio cue (jingle). This ensures that even if someone isn’t looking at the screen, they’ll still notice the ad.
From Views to Sales: How to Make Your Ads Count
The future of YouTube advertising is a lot more about building strategies that work seamlessly across all the different channels – and not choosing just one particular format that you think is perfect. The best video campaigns are built on synergy: while brands use dynamic Shorts to reach younger audiences, 30-second TV spots on big screens continue to build trust with older generations. That’s why you should combine these approaches rather than choosing just one option.
Your YouTube ads should literally follow the user everywhere: from a quick morning scroll on their phone to a relaxing evening of YouTube TV. Only this approach allows a brand to stay top-of-mind and drive maximum sales. Be adaptable and open to new ideas so you can catch the attention of the people who really matter.
FAQ on YouTube Ads Formats
Still got questions? No worries! We’ve compiled a list of the most common questions and answers about YouTube ads.
Today, there are skippable in-stream ads, non-skippable in-stream ads, bumper ads, in-feed ads (discovery), demand generation ads, masthead ads, pause ads, and audio ads.
Skippable ads can be skipped after 5 seconds. Non-skippable ads must be watched for the full 15–20 seconds. They can’t be skipped.
Setup is done through Google Ads. You just need to create a new campaign with the “Video” objective, select the “In-stream ads” format, upload your video creative, & specify the final URL.
If people spend more time on their phones, they’re likely to spend more time on YouTube Shorts. For Shorts, use a 9:16 aspect ratio (standard HD 1080×1920).
These are ads that pop up in YouTube search results, on the YouTube app’s home screen, and in the “Similar Videos” section.
In the device settings for your video campaigns, select “TVs,” and you’re all set.
They are embedded in video content before, during, or after the video. Viewers must watch the ads all the way through to continue watching.
The minimum resolution required is 720p (1280×720). But for better coverage and quality on a TV, 1080p is better idea.
Use in-feed video ads (or Demand Gen campaigns) to get your videos appear in search results and recommendations.
Banners overlaid on videos are a thing of the past. They’ve been replaced by pause ads. They’re more effective and don’t annoy viewers.
