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Complete YouTube Video Ad Guide For Small Business Owners

Aneri Shah Clock IconLast Updated on: July 22, 2021

If you think you don’t have the budget to do video marketing for your small business, this post is going to break that myth.

Over 2 billion people are using YouTube and increasing their video consumption by 50% every year.

This isn’t a small increase in user base – it’s a pretty substantial one, and everyone, including small businesses, can reap the benefits out of this platform.

So without further delay, let’s learn how you can create YouTube Video Ads and leverage them for your business.

Here’s what you will learn today. Feel free to skip to a particular topic if you would like.

  1. Types of Video Ads on YouTube
  2. How to make YouTube Ad on a shoestring budget
  3. How to create your first YouTube Ad campaign
  4. Tips to make an effective Video Ad
  5. Editorial pick: Video Ad templates

Types Of Video Ads You Can Host On YouTube

YouTube Video Ads

YouTube video Ads run on YouTube desktop, mobile, and apps, TVs, gaming consoles, as well as when embedded on other sites.

  • You can place video Ads at pre-roll, mid-roll, or post-roll.
  • These Ads can be either skippable or non-skippable.
  • The video Ads can either be served as a YouTube-hosted video or a third-party-hosted video.

The Video Ads are classified under two major categories, skippable and unskippable Ads.

1. Skippable Video Ads

YouTube - Skippable Video Ads

In such an Ad, the viewer has a choice of skipping the Ad after the first 5 seconds.

The advertiser pays YouTube each time a viewer “Views” the video.

Now, YouTube will consider the Ad as “viewed” only after the video has been watched until 30 seconds or has been watched completely in case the Video Ad is shorter than 30 seconds.

Skippable Ads Features:

  • Nature – Skippable after 5 seconds.
  • Placement – Can be inserted before, during, or after the main video.
  • Platform – Available in desktop, mobile devices, TV & game consoles.
  • Specs – Plays in a video player.
  • Length – Not specified.

Skip Button (only skippable Ads): During the first 5 seconds of a skippable Video Ad, a skip count-down will appear. Once 5 seconds have passed, the count-down will be replaced by a Skip Button.

You have two kinds of these skippable videos:

  1. In-Stream
  2. In-Display

A. In-Stream Ad

In-stream Ads, as the name suggests, are placed in the main video content.

YouTube In-stream ads

Image source: Google Support

When Can I Use The Skippable In-Stream Ad?

You can use this type of Ad when you want to promote video content before, during, or after videos on YouTube as well as across the Google Video Partners’ websites and apps.

While most of the videos last for 15-30 seconds, you may keep the length at 3 minutes, too, as suggested by YouTube.

If you have a really interesting concept to share with people and you are confident you can hook your audience, go ahead and try the long format.

Many have successfully done this:

YouTube Skippable In-Stream Ad

In the Image: This video is 1:59 minutes long and has a Skip Ads button after 5 seconds.

While using such long format Video Ads, you need to make sure your Video Ad can capture the viewer’s attention in the first 5 seconds, so they watch the entire Ad.

How will I be charged for YouTube In-Stream Ad?

#1 – CPV bidding – you only pay to YouTube when a viewer:

  • watches over 30 seconds of your video OR
  • Watches full duration if your video is shorter than 30 seconds OR
  • Interacts with your video

#2 – Target CPM, Target CPA, Maximize conversions bidding – pay on impressions.

B. Video Discovery Ad

AKA – In-Display Video Ads

These Ads are placed in the search listings or related videos section.

YouTube In-Display Video Ads

Image source: Google Support

YouTube is the 2nd biggest search engine in the world after Google. You can opt for this type of Ad when you want to be displayed for a particular keyword as you do in Google Search Ads.

These Ads are generally not very expensive because of their low conversion rate. You’ll be charged only when viewers decide to watch your Ad by clicking the thumbnail.

However, they can generate great results if done skilfully and that too at a low cost.

While making In-Display Video Ads, make sure you are producing content specific to the keyword you are targeting.

YouTube In-Display video ads Creation

For example, in the above case, the content is optimized for the keywords searched. With this Ad type, you can get your videos to be noticed first for particular keywords.

2. Non-skippable Video Ads

YouTube Non-skippable Video Ads

Image source: Google Support

In the Image: As you can see, there is no skip button for this Ad.

In such an Ad, the viewers do not have the choice to skip the Ad. These types of Ads do not increase the view count.


  • Nature – Non-skippable Pre-roll Ads.
  • Placement – Can be inserted before, during, or after the main video.
  • Platform – Available on desktop & mobile devices.
  • Specs – Plays in the video player.
  • Ideal length – 15-20 seconds.
  • Uses Target CPM bidding, pay based on impressions.

Bumper Ads, the non-skippable Ads that are maximum 6 seconds long, are also available in select markets and are designed to drive awareness and reach.

These Bumper Ads are great for small business advertising as they are low cost to prepare and promote but can be great for boosting brand recognition.

Bumper Ads

Image source: Google Support

Now that you know the two main types of Video Ads you will be dealing with, let’s get into how you can create fantastic Video Ads using video templates from InVideo, a free YouTube Video Editor.


Step 1 – Decide Your Goal And Write A Video Ad Script.

Conducting any kind of marketing activity without a goal in mind is like shooting in the dark – it might hit the target once or twice, but there are high chances you will fail at achieving what you want.

Before you start creating Ads, decide what action you want your viewer to take.

Do you want your audience to:

Visit your website?

Purchase or try your product?

Subscribe to your email list?

Enroll in your course?

Follow your YouTube channel?

Attend an event?

Donate for a cause?

Guide your audience clearly on what needs to be done after watching your advertisement.

Step 2 – Write A Video Ad Script

Three C’s of Video Ad scripts: Crisp, Concise & Clear.

Crisp words

Concise Information

Clear Call-To-Action

Incorporate these three rules in your script and write about one sentence for every 4 seconds of video you want to make. For example, 20 seconds will have the bandwidth to include 4-5 lines of copy.

Step 3 – Shoot Videos & Photographs (optional)

Smartphones today have smart enough cameras to shoot HD videos and photos. Use your devices to get personalized pictures and video clips for your Ad.

These don’t have to be high-end or high-production-value clips. But yes, the content should be excellent.

Some tips for mobile photography:

Step 4 – Find A Relevant Template From Over 500 Ad Templates.

Log in to InVideo – the best video editing software for YouTube and browse from over 500 Ad templates.

According to your script and media, check out which template will serve the purpose.

You can also type a particular industry you would like to check, like, “Real Estate Ad.”

InVideo Ad Templates

Step 5 – Customize And Optimize Your Video Ad.

Time to let InVideo’s YouTube Editor do its magic.

Bring whatever video or pictures you have clicked into the InVideo platform by dragging and dropping in the left panel of the interface.

Then simply drag and drop on the template to replace or adjust the image wherever you like.

InVideo- Video Ad Customisation

Edit the text and effects, add stickers, and even voiceovers to your Video Ad using InVideo YouTube Video Maker.

Create a professional-looking YouTube Video Ad with super ease using the best video editor for YouTube available out there – InVideo, without breaking your pocket.

Once you are done with all the changes you like, preview the video once, and export.

Now your low-cost, high-quality Video Ad is ready to be rolled.

How to Create Your First YouTube Advertising Campaign

Step 1 – Upload Your Video Ad On YouTube

Create a YouTube account if you haven’t yet.

On the top right corner, click on the + button and choose “Upload video” and upload the Video Ad you just created with the InVideo’s online YouTube Video Editor.

YouTube Video Upload

Step 2 – Go To Google Ads And Create A New Campaign

Once you have uploaded the video on YouTube, come to and create a Google Ads account.

Once logged in, click on “All Campaigns” from the left sidebar and click on “+” to create a new campaign.

Campaign Creation

Step 3 – Add Details Of Your Campaign

Select your goal and select a campaign type:

Campaign Goal Setting

Step 4 – Fill In The Rest Of Your Campaign Details.

Campaign Detail Updation

Here, you will have to fill the following details:

  • Campaign name
  • Bidding strategy
  • Budget and dates
  • Networks
  • Languages
  • Locations
  • Inventory type
  • Excluded types and labels

Step 5 – Select Target Audience & Places You Want Your Ads To Show.

Campaign - Target Audience and Location

Demographics – Choose the gender, age, parental status, and household income.

Audiences – Select what kind of people you are looking for. E.g., Marketing enthusiasts or coffee lovers.

You can browse your audience based on:

  • Who they are (Detailed demographics)
  • What their interests and habits are (Affinity and custom affinity)
  • What they are actively researching or planning (In-market, life events, and custom intent)
  • How they have interacted with your business (Re-marketing and similar audiences)
  • Combined audiences (Your audience combinations)

Next, choose where you want your Ads to show

Ad Placement

Select the Keywords and Topics you are targeting and choose placements. Since we want to advertise on YouTube, choose YouTube videos and YouTube channels as your placement options.

Step 6 – Select The Video You Want To Promote As Ad And Add Details

Promote Ad

Here, add your URL, headline, and a Call To Action.

Click on Create Campaign once you are all done.

Congratulations! You just set up your first YouTube Ad campaign!

Now that we have our basics straight, hone your Video Ad skills further with these Video Ad tips:

6 Tips To Make An Effective Video Ad For YouTube

1. Make The First 5 Seconds Count

Choose any Video Ad type, and the viewer is bound to see the first 5 seconds.

So make sure you are using these 5 seconds to pique user’s interest in watching your Ad further.

2. Send A Single Message

Human brains can hold up to 7 pieces of important information at a time, and with so many other things going in their minds, it’s difficult to accommodate one more bit of info.

Focus on delivering a single yet powerful message so the viewer can actually remember it. In the long run, this will also help you narrow down what kind of messaging works for your brand.

3. Plan For Sound Off

If you are going to use the same Ad elsewhere, especially on Facebook or LinkedIn, make sure the first few seconds are optimized to be played with sound off.

4. Look Less Like An Ad

Blending in with how normal content looks like is the key to a successful video. Instead of just pushing your USPs onto the viewer, get down and get real. Make a testimonial as an Ad or a how-to video on your product.

In simple words, be subtle with your marketing message.

5. StaY ConSistent AcrOss chAnnelS

Did you find the title irritating because of the inconsistent upper case? That’s what it feels like to the audience when your marketing messages are confusing and inconsistent.

In graphics, in tone, in the message, in sound – be consistent across all the platforms you choose to advertise your product on.

Global brands are truly global because their communication is consistent. Note that Ads differ in different countries, but staying consistent with the core part of your message is important to build global recognition of your brand.

6. Conduct A/B Testing

AKA split testing; A/B testing is a systematic analysis conducted by marketers where two versions of the same Ad are tested to see which performed better.

Always keep testing for what works and what doesn’t. Try changing media, text style, formats, sound, animations, CTAs, colors, thumbnails, etc. to check what works the best.

Using InVideo templates in our free YouTube Video Editor gives you the flexibility to change all these items in minutes without affecting your core Ad.

I am sure you are now equipped with everything you need to know about YouTube Ads. Now go ahead and make a kick-ass Ad for your brand. To make your job easy, we have picked 10 video templates that you can choose from:

Editorial Pick – 10 video ad templates for small business marketing

Dental Ad template

Limited Offer Ad template

Coupon Ad template

Electronics Sale Ad template

Hotel Ad template

Online course Ad template

Real Estate Ad template

Travel Ad template

Lounge Ad template

Shoe sale Ad template


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