What are YouTube Ads and how to use them?

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What are YouTube Ads and how to use them?

By Paula Moreno · 6 minutes read · Last updated: April 14, 2025 · Tags: YouTube

When we think of YouTube Ads, many still box it in as “that thing that pops up before your recipe video or the latest podcast episode”. But the truth is, YouTube has become a full-blown performance beast.

With over 2.5 billion monthly active users and 30 million logging in every day, YouTube isn’t just one of the most visited websites on the planet—it’s a goldmine for video marketing.

Its audience is broad and diverse, ranging from 18-year-olds to users over 40 who consume content daily. Sounds powerful? Hold on, there’s more: over 100 million hours of video are watched every day, and around 500 hours of content are uploaded... every single minute.

Bottom line: if your brand wants to be where people actually spend their time, YouTube is the place to be.

TABLE OF CONTENTS

Why use YouTube in your strategy?
Formats that work
How to choose the right format?
🎓 Case 1: The Bridge – Education that connects
🧠 Case 2: UOC – A university that converts

Why use YouTube in your strategy?

Over 2 billion monthly active users.
70% of users say they’ve purchased a product after seeing a YouTube ad.
And yes: even if they hit skip, that impact still counts.

Video content consumption is booming. Life is fast-paced, and users want to be entertained and informed in a quick, easy way. YouTube isn’t just about branding. If you know how to use it, you can activate campaigns that convert, scale, and integrate perfectly with your full-funnel strategy.

There are plenty of reasons to bet on YouTube in your digital marketing strategy, but here are the ones that carry the most weight in our day-to-day work with clients:

🧠 Next-level visibility and SEO

YouTube is the second most used search engine in the world... and it’s owned by Google. So yes, what you upload to YouTube also gets indexed in SERPs. In many searches, Google already shows videos on the first page and lets users filter by video content.
Pro tip: Optimize your videos with snippets and boost your visibility even more.

⏱️ More time, lower bounce rate

Video content hooks people. Period. That means users spend more time with your content—perfect for improving metrics like session duration or bounce rate, especially when combining video with web content or multichannel campaigns.

💬 Real engagement

Videos aren’t just watched, they’re remembered and shared. It’s the most viral format and creates stronger emotional connections. If you want campaigns that are memorable (and don’t get lost in the infinite scroll), this is your secret weapon.

📱 Built for multi-screen

YouTube is watched on mobile, tablets, Smart TVs, consoles… you name it. In a world that’s increasingly “mobile commerce”-oriented, having content that adapts to all screens is non-negotiable.

🔗 Direct traffic to what matters

One of the biggest perks of YouTube Ads is that you can add direct calls to action that take users to your website, your store, or your app. Perfect for performance campaigns focused on conversions.

Formats that work

YouTube isn’t just “that ad you skip after 5 seconds.” It’s a platform with multiple ad formats—each one with its own objective, strengths, and way of blending into the user experience. Here are the most important ones:

🎬 Video Formats

1. Skippable In-Stream Ads (TrueView)

💡 The classic you can skip after 5 seconds.

Where it shows: before, during, or after a YouTube video.
Pricing: you only pay if the user watches 30 seconds (or the full video if shorter) or interacts.
Best for: consideration or performance campaigns. A solid hook in the first few seconds can drive real interest—even if they skip.

Pro tip: Combine them with bumper ads in sequential campaigns.

2. Non-Skippable In-Stream Ads

💡 Ads that users must watch in full (15 seconds max).

Where it shows: same as above.
Pricing: based on impressions (CPM).
Best for: awareness campaigns where delivering the full message is crucial.

Tips: Use sparingly and only when the message is worth the full 15 seconds. Otherwise, it can feel intrusive.

3. Bumper Ads

💡 Small but mighty: 6 seconds, non-skippable.

Where it shows: before a video.
Pricing: based on impressions (CPM).
Best for: reinforcing messages from longer campaigns, boosting recall, or launching teasers.

Real example: In sequential campaigns, combining bumpers + TrueView can boost brand recall by up to 90%.

4. YouTube Shorts Ads

💡 The new kid on the block. Vertical ads, 60 seconds or less, shown in the Shorts feed.

Where it shows: between Shorts videos.
Pricing: depends on campaign goal (CPM or CPV).
Best for: attracting young, mobile-first, fast-consuming audiences.
Format: fully vertical, dynamic, TikTok-style content.

⚡ Use it if: your brand rides trends and needs quick visibility.

5. In-Feed Video Ads (formerly Discovery)

💡 Ads that appear as suggestions in search results or on YouTube’s homepage.

Where it shows: next to related videos, homepage, or search results.
Pricing: only when a user clicks to watch.
Best for: generating interest from cold audiences, content launches, or promoting longer videos.

Great if: you have a strong video with solid storytelling and want voluntary views.

🧩 Complementary Formats

10. Display Ads

Visual banners that appear next to suggested videos or below the player.

Best for: reinforcing ongoing campaigns.
Placement: right-hand side or below the video on desktop.

🖼️ Acts as a visual reminder of your brand.

11. Overlay Ads

Semi-transparent banners over the bottom 20% of the video.

Desktop only.
Best for: quick promotions or driving traffic at a low cost.

👀 They don’t interrupt—but they’re there.

12. Sponsored Cards

Small pop-ups that display products related to the video.

Users can interact with them or ignore them.
Best for: ecommerce, product demos, or promos.

🛍️ Lets you sell without disrupting the experience.

🌐 Special & Advanced Formats

13. YouTube Masthead

💡 The Ferrari of YouTube Ads. A giant banner at the top of the YouTube homepage for 24 hours.

Where it shows: prominent banner on YouTube, across all devices.
Pricing: reservation-based (CPD).
Best for: product launches, mass campaigns, or brand milestones.

Spoiler: It’s not cheap, but it delivers massive awareness.

14. Connected TV Ads (CTV)

Ads designed for Smart TVs, Chromecast, Apple TV, etc.

More “premium” format due to high viewer attention.
Best for: branding, long-form videos, or family-targeted audiences.

🛋️ High completion rates.

15. Audio Ads

New format that focuses on voice messaging.

Includes: audio + static image or light animation.
Best for: reaching users who consume music, podcasts, or background content.

🎧 Perfect when your message works just by being heard.

🛠️ Personalization & Targeting Tools

16. Video Customization in Ads Creative Studio

Adapt a single base video to multiple audiences.

Example: change city, product, or language while keeping the core message.
Best for: large-scale campaigns, advanced targeting, and localization.

🛠️ Formerly known as Director Mix.

17. Dynamic Lineups

Targeting based on context and machine learning.

Acts like a themed “playlist” where your ads show up.
Best for: connecting with very specific user interests.

🤖 High precision, low waste.

18. YouTube Select

Lets you advertise only on the most popular and brand-safe channels.

Guaranteed quality and brand safety standards.
Best for: premium brands or sensitive industries.

🏆 Perfect for brand consistency.

19. MMMs de Adsmurai

Invertir en YouTube Ads sin entender el impacto real que tiene en tus ventas es como aplaudir con guantes de boxeo: haces ruido, pero no sabes si sirve.

Aquí es donde entra nuestro servicio de MMM (Marketing Mix Modeling) en Adsmurai.
👉 ¿Qué hace? Analiza el efecto de cada canal de marketing (sí, también YouTube) sobre tus resultados de negocio, teniendo en cuenta factores externos como estacionalidad, promociones o mercado.

✅ ¿Por qué importa esto en YouTube?
Porque puedes tener miles de visualizaciones… pero lo que importa es saber cuántas ventas, leads o registros llegaron realmente por esa inversión. Con MMM, respondemos justo eso.

Recap: How to choose the ideal format?

It depends on your goals and budget. At Adsmurai, we follow this logic:

Objective	Recommended formats
Awareness	Masthead, Bumper, Audio Ads, CTV, Non-skippable
Consideration	In-Stream Skippable, Discovery, YouTube Shorts, Sponsored Cards
Conversion / Performance	Video Action Campaigns, YouTube Shorts Ads, Overlay, Dynamic Lineups

If you need more details about YouTube ad formats, here's an interesting article from Google that might answer your questions. You can check the specifications and platforms available for each format.

🎓 Case 1: The Bridge – Education that connects

Objective: Increase brand awareness and position their tech education offering.

Target audience: Young adults looking to switch careers or train in digital fields.

Strategy:
At Adsmurai, we developed a video campaign with a strong emotional and storytelling angle. We leveraged the YouTube TrueView for Action format to drive qualified traffic to their website. All of it was supported by a custom audience strategy, targeting interests, search intent, and remarketing.

Results:

700,000+ full video views
+45% more views than initially estimated
Cost per view below benchmark
Significant brand awareness uplift

📍 Conclusion: A well-executed video can put an emerging school in the same conversation as the top players in the education space.

The Bridge_Vídeosecuencial1 THeBridge_Vídeosecuencial2

🧠 Case 2: UOC – A university that converts

Objective: Generate qualified leads for academic programs.

Target audience: People in the decision-making phase for their education.

Strategy:
We implemented YouTube Ads focused on performance, using Video Action Campaigns (VAC). With tailored creatives, strong CTAs and a clear message from the start, we maximized the conversion rate.

We also measured performance using GA4 and Looker Studio, identifying the top-performing videos and audiences.

Results:

5,000+ leads generated
CPA well below the target
Increase in qualified website traffic
High post-view conversion rate (users who converted after watching the video, without clicking)

📍 Conclusion: Video doesn’t just move people—it moves results. Especially when your message matches user motivation and your funnel is well structured.

After seeing everything YouTube Ads has to offer—from formats to real results—the key is having a partner who knows how to activate, optimize, and scale this channel within a 360° strategy. Want help getting the most out of it? At Adsmurai, we do it every day—with real results.