How to Run Effective Ads on YouTube

17th April, 2025
7 Minutes
Transactions • Virtual Cards • Payments • Finance
 How to Run Effective Ads on YouTube
Written by
Obasi Kanu
Obasi Kanu
Digital Marketer
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Running ads on YouTube can be one of the most effective ways to reach your audience, drive sales, and build brand awareness. With over 2 billion monthly active users and the power of Google Ads behind it, YouTube offers a vast advertising platform for businesses, content creators, and marketers alike. Whether you’re looking to grow your brand, promote a product, or increase engagement, YouTube ads are an essential tool to consider.

In this guide, we’ll walk you through everything you need to know to run successful ads on YouTube, from setting up your first campaign to tracking results and optimizing for better performance.

Why Run Ads on YouTube?

Before diving into the how-to, it’s important to understand why YouTube ads are an excellent investment. Here's why:

1. Reach a Huge Audience

YouTube has more than 2 billion logged-in users each month, and it’s the second-largest search engine in the world, right after Google. This offers advertisers an unprecedented opportunity to reach a global audience, across all age groups and demographics.

2. Highly Targeted Advertising

Thanks to its integration with Google Ads, YouTube allows you to target your ads based on factors like:

  • Age

  • Gender

  • Location

  • Interests

  • Keywords

  • Devices (mobile, desktop, tablets)

  • Remarketing (reaching people who have interacted with your content before)

This means you can create laser-focused ad campaigns tailored to the needs of your audience, ensuring your message reaches the right people.

3. Multiple Ad Formats

YouTube offers a wide variety of ad formats to suit your campaign goals, from skippable video ads to display ads and everything in between. This flexibility allows you to experiment and choose what works best for your brand.

4. High Engagement

Videos are incredibly engaging, and YouTube has a unique way of holding viewers' attention. Whether it's an entertaining ad, a tutorial, or an informative product demo, videos encourage more engagement compared to other forms of content.

5. Managing Ads with Ease Using the Myaza USD Card

As you scale your YouTube ad campaigns, you might need a simple and efficient way to fund them. The Myaza USD card provides a seamless solution for international transactions, allowing you to fund your Google Ads account without stress. With Myaza’s USD card, you can avoid the complexity of currency conversions and manage payments from anywhere in the world.

Types of YouTube Ads

There are several types of ads you can run on YouTube, and understanding these will help you choose the best format for your goals:

1. Skippable In-Stream Ads

These are the most common ads on YouTube. They appear before, during, or after a video, and viewers can skip them after 5 seconds.

  • Pros: They allow you to reach a large audience and you only pay when the user watches the ad for at least 30 seconds (or the full duration if it’s shorter).

  • Best for: Building brand awareness, driving traffic to your website, and targeting larger audiences.

2. Non-Skippable In-Stream Ads

These ads also appear before, during, or after a video, but viewers cannot skip them. They typically last between 15 and 20 seconds.

  • Pros: You ensure that your audience watches the entire ad.

  • Best for: Strong, clear messages where you want to ensure the viewer gets your full ad.

3. Bumper Ads

Bumper ads are short, non-skippable ads that last for 6 seconds or less. They appear before the video starts and are designed to deliver a brief, impactful message.

  • Pros: They are perfect for short, concise calls to action or building brand awareness.

  • Best for: A quick brand recall or creating a sense of urgency.

4. Overlay Ads

These are text or image-based ads that appear in the lower part of a video on YouTube. They don’t interrupt the video, so they’re less intrusive.

  • Pros: They don’t disrupt the user experience.

  • Best for: Ads that don’t require sound or a full video and want to appear more natural.

5. Sponsored Cards

Sponsored cards appear during the video and display a small teaser for a relevant product or service related to the content.

  • Pros: Great for eCommerce or if you're promoting products.

  • Best for: Encouraging users to check out a product without interrupting the video.

6. Display Ads

These ads show up on the right-hand side of the video page on desktop devices. They can either be static or dynamic.

  • Pros: Great for driving traffic to websites or offering special promotions.

  • Best for: Promoting products, services, or events.

How to Set Up Your YouTube Ad Campaign

Step 1: Create a Google Ads Account

YouTube ads are managed through Google Ads, so the first step is to create an account or sign in to your existing one.

  • Visit Google Ads and sign in with your Google account.

  • If you don’t have an account, click on Start Now and follow the instructions to set up your account.

Step 2: Link Your YouTube Channel to Google Ads

Once you’ve set up your Google Ads account, you need to link it to your YouTube channel. This will allow you to track performance and create targeted campaigns.

  • Go to your Google Ads account and click on Tools & Settings in the top right corner.

  • Under Setup, select Linked accounts.

  • Find YouTube and select Details.

  • Follow the instructions to link your channel to Google Ads.

Step 3: Choose Your Campaign Goal

Google Ads offers a variety of campaign types, depending on your goals. For YouTube ads, you will typically choose Video as the campaign type. Some of the campaign goals you can choose from include:

  • Brand awareness and reach: To increase visibility and exposure.

  • Consideration: Encourage people to engage with your content (watch videos, subscribe).

  • Conversions: Encourage users to take specific actions, like visiting your website or purchasing.

Step 4: Define Your Target Audience

One of the most powerful aspects of YouTube ads is targeting. Define your audience based on these criteria:

  • Demographics: Age, gender, parental status, and household income.

  • Interests: What your target audience is interested in, such as technology, fashion, health, etc.

  • Keywords: The search terms your audience uses to find content on YouTube.

  • Topics: Specific topics that your target audience is interested in.

  • Placements: You can even target specific videos, channels, or websites where you want your ads to appear.

  • Remarketing: Target people who have already interacted with your brand or videos.

Step 5: Set Your Budget

You’ll need to determine how much you want to spend on your YouTube ads. Google Ads allows you to set a daily or campaign budget. You can choose to pay either for impressions (CPM) or clicks (CPC).

  • CPM: Cost per thousand impressions, suitable for brand awareness campaigns.

  • CPC: Cost per click, suitable for campaigns focused on getting people to take action.

Step 6: Choose Your Ad Format

Now, decide on the type of ad you want to run. You can choose from the formats we mentioned earlier (skippable, non-skippable, bumper ads, etc.). Make sure to choose a format that aligns with your campaign goals.

Step 7: Create Your Video Ad

This is where the creativity comes in! Upload the video you want to use for your ad. Keep in mind:

  • Video Quality: Make sure the video is clear, high-quality, and visually appealing.

  • Compelling Intro: Capture your audience’s attention in the first 5 seconds, since people tend to skip ads quickly.

  • Clear Call-to-Action: Direct viewers on what to do next—whether it's to visit your website, subscribe to your channel, or make a purchase.

And if you're running ads globally, make sure you're using a seamless payment method. The Myaza USD card can help you pay for international ads without any hassle, keeping your campaigns running smoothly.

Step 8: Monitor Your Campaign

Once your ads are live, it’s essential to track their performance. Google Ads provides detailed analytics, including:

  • View-through rate (VTR): The percentage of people who watched your ad to completion.

  • Click-through rate (CTR): The percentage of viewers who clicked on your ad or visited your website.

  • Cost per view (CPV): The average cost for each view.

  • Conversions: The number of desired actions completed by users (e.g., sign-ups, purchases).

Tips for Optimizing Your YouTube Ad Campaigns

1. Use A/B Testing

Experiment with different ad creatives, targeting options, and formats. A/B testing allows you to compare the performance of two versions of the same ad and identify what works best.

2. Retarget Your Audience

Not everyone will convert on their first interaction with your ad. Use remarketing to target people who watched your ad but didn’t take the desired action.

3. Focus on Engaging Content

Your ad should be engaging from start to finish. Use strong visuals, a clear script, and an authentic call-to-action that encourages people to act.

4. Track Analytics Regularly

Monitor your campaigns and adjust based on performance. If one ad format is performing better than another, tweak your strategy accordingly.

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