[YouTube Ads] The Eight Formats and What Each One Does

Do you watch YouTube?
These days almost every video on YouTube carries ads.

YouTube is said to have 65 million monthly users in Japan (as of September 2020), and the number is still rising.
Viewing is rising even among people in their 50s and 60s, a group that used to be thin on the ground, so ads can now reach a broad audience.

YouTube ads come in several formats, and which one you choose changes the results you get.
This article covers the basic formats you should know before you start running YouTube ads.

We have covered what YouTube ads cost below, so do read that too.

What do YouTube ads cost? How to maximise your return

1. There are eight YouTube ad formats

There are eight formats in all: six video and two static.

■Video ads
・Skippable in-stream ads
・Non-skippable in-stream ads
・In-feed video ads (formerly TrueView discovery ads)
・Bumper ads
・Out-stream ads
・Masthead ads

■Static ads
・Overlay ads
・Display advertising

Here is each format in turn.

2. Video ads

2.1 Skippable in-stream ads

“Skippable in-stream ads” run before, during or after a video.
They apply to videos served on YouTube and on websites and apps in the Google video partner network.
It is a placement that can draw people’s interest,
and if you are unsure which YouTube ad format to use, this is the one we recommend.

Its defining feature is that viewers can skip the ad five seconds after it starts.

Billing is cost per view (CPV). You are charged when someone watches 30 seconds of the video (or all of it, for ads shorter than 30 seconds) or interacts with it before the 30 seconds are up.
With the “target CPM”, “target CPA” and “maximise conversions” bid strategies, you are charged on impressions instead.

There is no known upper limit on the length of video you can upload. (We have seen ads running to around two hours, but there is no point, so we do not recommend it.)

2.2 Non-skippable in-stream ads

“Skippable in-stream ads”, like skippable in-stream ads,
run before, during or after a video.
They also apply to videos served on YouTube and on websites and apps in the Google video partner network.
As the name says, they cannot be skipped, which makes them effective when you want the whole ad seen.

“Non-skippable in-stream ads” run up to 15 seconds.

“Non-skippable in-stream ads” use target CPM, so you are charged on the number of impressions.

Compared with the skippable in-stream ads covered just above, the 15 seconds cannot be skipped, so the advertiser’s message gets watched to the end.
That said, Some viewers find being unable to skip irritating, so targeting the ad as closely as you can to people who are genuinely interested is a good idea.

2.3 In-feed video ads

“In-feed video ads” appear next to related videos on YouTube, in YouTube search results and on the YouTube mobile home page. (They used to be called “TrueView discovery ads”.)

“In-feed video ads” consist of a thumbnail and text, and the video plays when someone clicks.

You are not charged until someone clicks the thumbnail and watches the ad.

The ad is not watched unless it is clicked, but anyone who does click can be assumed to have some interest in what you offer, so build the creative for in-feed ads with conversion in mind.

2.4 Bumper ads

“Bumper ads” appear on YouTube videos and on websites and apps in the Google video partner network.
They play for up to six seconds before, during or after a video, and cannot be skipped.

“Bumper ads” are regarded as effective for reaching a broad audience with a short, memorable message.

They use “target CPM”, so you are charged on the number of times the ad is shown.

“Bumper ads” work well for building awareness of a brand or of a sale.
Compared with longer ads of 15 seconds or so, six seconds can be watched without attention wandering, which is why they are considered effective.

2.5 Out-stream ads

“Out-stream ads” start playing with the sound off and unmute when the viewer taps them.
This format is mobile only and appears solely on websites and apps in the Google video partner network. It does not appear on YouTube.

Its purpose is to extend the reach of your video at a reasonable cost.
Billing is on viewable cost per thousand impressions (vCPM), so you are charged once the video has been watched for two seconds or more.

“Out-stream ads” are regarded as effective when you want to extend the reach of video advertising on mobile and get in front of more customers.

2.6 Masthead ads

“Masthead ads” put your ad in the most prominent position available, which makes them effective for building awareness of a new product or service, or for reaching a large audience in a short space of time.

“Masthead ads” look different on each type of device.

■On desktop

■On mobile

■On a TV screen

Billing is on cost per thousand impressions (CPM).

“Masthead ads” are booked through a Google sales representative, so get in touch in advance and check the schedule.

3. Static ads

YouTube can carry static image ads as well as video ads.

3.1 Overlay ads

“Overlay ads” appear semi-transparent across the bottom 20% of the video player.
They can be either an image or text.

“Overlay ads” are billed on CPC (per click) or CPM (per thousand impressions).

Because the ad sits on top of the video, it is considered hard to miss.

3.2 Display advertising

“Display advertising” is also known as GDN, the Google Display Network.
It runs not only on YouTube but across a wide range of platforms, including Gmail, websites and apps.

On YouTube it appears as a banner to the right of the video and above the list of recommended videos.

Billing is on CPC (per click) or CPM (per thousand impressions).

4. In closing

Those are the ad formats you can run on YouTube.

Here is a recap of the formats.

■Video ads
・Skippable in-stream ads
・Non-skippable in-stream ads
・In-feed video ads (formerly TrueView discovery ads)
・Bumper ads
・Out-stream ads
・Masthead ads
■Static ads
・Overlay ads
・Display advertising

Shaping the video around the goal of the campaign matters, but the format also sets the length, so
“how many seconds you have to get the information across”
“how many seconds you have to win the viewer over”
change with it as well.
Weigh up the goal and the format, and build ads that work.