As we advance through 2024, YouTube remains one of the most powerful advertising platforms for businesses looking to reach their target audience and drive conversions. With over 2 billion monthly active users, YouTube offers massive reach and the ability to engage viewers with compelling video ads.
In this guide, we'll dive deep into the strategies and tips for running successful YouTube ad campaigns in 2024. We'll cover the most effective ad formats, bidding strategies, targeting options, and ad creative best practices, based on our extensive experience and research.
Whether you're new to YouTube advertising or a seasoned pro, this guide will equip you with the knowledge and tactics to take your campaigns to the next level and achieve your business goals on the platform. Let's get started!
Section 1: YouTube ad formats in 2024
One of the keys to success on YouTube is choosing the right ad format for your goals and target audience. Here are the main ad formats available in 2024 and when to use them:
1. In-Stream ads
In-stream ads are the bread and butter of YouTube advertising for direct response campaigns. These are the skippable video ads that play before, during, or after other videos.
The majority of ad spend for lead generation and customer acquisition campaigns goes to in-stream ads because they work so well for driving conversions.
In-stream ads are best for driving traffic, leads and sales as you only pay when a viewer watches at least 30 seconds or engages with your ad. The ability to skip also helps qualify the traffic, as we've found:
When you're running non-skippable ads, you are not really filtering out audiences because they're just watching their cat videos and you're interrupting them. There is no filtration process compared to in-stream ads where they can skip if they're not interested in your hook. Whoever watches your video is more likely to be your target audience.
2. Bumper ads
Bumper ads are 6-second non-skippable video ads. While often used for branding, we've actually found them to be highly effective for direct response as well, especially at the bottom of the funnel.
Because viewers are forced to watch bumper ads, they can be great for re-engaging people already familiar with your brand and hammering home your key message and call to action.
So if you have a compelling offer and want to reach warm audiences, consider testing bumper ads as part of your strategy.
3. YouTube Shorts ads
YouTube Shorts is the platform's rival to TikTok - short vertical videos under 60 seconds. While there's no official Shorts ad placement yet, you can still reach Shorts viewers by running vertical video ads under 90 seconds and targeting mobile devices only.
Here's how we recommend setting this up: Make sure your video is 60 to 90 seconds long in vertical format, then set your campaign targeting only to mobile devices. This way, you'll get most of your impressions on Shorts videos.
The cost per view on Shorts tends to be lower compared to regular videos. With over 50 billion daily Shorts views as of 2024, there's a ton of inventory. The key is making ads that fit the fast-paced, raw, attention-grabbing vibe of the Shorts feed.
Shorts audiences respond best to ads that are catchy, organic-feeling, and 30-60 seconds long. Think of it more like a TikTok or Reels ad than a traditional commercial. Grab attention quickly, don't be too polished, and get your message across fast.
4. Discovery ads
Finally, Discovery ads are the native ad format that appears in YouTube search results, watch pages, and the homepage feed. These are best for building awareness, getting more video views, and growing your YouTube channel presence.
You can use Discovery campaigns when the primary goal is growing your channel and build top-of-funnel audiences. If you want to get more views, subscribers, likes and comments on your videos, Discovery ads are a great tool.
Section 2: YouTube ad bidding strategies
Choosing the right bidding strategy is critical to achieving your desired results and ROAS on YouTube. Here are the main options and best practices we recommend:
1. Cost Per View (CPV) bidding
With CPV bidding, you pay each time someone views your video ad. A view is counted when someone watches at least 30 seconds or engages with your ad. This is the recommended bidding strategy for branding campaigns focused on maximizing views and reach.
2. Target Cost Per Action (tCPA) bidding
For direct response campaigns aiming to drive conversions like sales or leads, tCPA bidding is often the most effective option in our experience. With tCPA, you set your target cost per conversion and Google automatically optimizes your bids to get as many conversions as possible at your target CPA.
When setting your target CPA, keep in mind the type of product you're selling and the length of your sales cycle. If you're selling an inexpensive impulse purchase, your target CPA will be much lower than if you're selling a high-ticket item with a longer sales process.
Your tCPA should factor in your customer lifetime value (LTV). We've found that while cost per lead on YouTube may be higher than Facebook, the lead quality and customer LTV tends to be higher, likely because the in-stream ad experience better qualifies prospects. Focus on the end revenue and profit, not just the front-end CPL (Cost Per Lead).
3. Maximize conversions bidding
Another smart bidding strategy to test for conversion-focused campaigns is Maximize Conversions. With this strategy, Google automatically sets your bids to drive the most possible conversions within your daily budget. This can work well if you have a limited budget and just want to get as many conversions as possible.
4. CPM bidding
CPM (Cost Per Mille) bidding is when you pay per 1,000 ad impressions. This can be an effective strategy for bumper ad campaigns focused on maximizing reach. However, it may not be as cost-effective as other bidding strategies for driving actions.
The key is aligning your bidding strategy with your primary campaign goal and funnel stage. For example, use CPV for awareness, tCPA for conversion campaigns, and maybe CPM for some bumper ad blitzes. But in general, tCPA is our go-to for performance campaigns.
Section 3: YouTube ad targeting options
Reaching the right audience is essential for YouTube ad success. Fortunately, the platform offers a range of powerful targeting options to help you zero in on your ideal customers:
1. Custom intent audiences
Custom intent audiences are one of our favorite targeting options. They allow you to show your video ads to people who recently searched for specific keywords on Google.
For example, let's say you sell golf equipment. You could target people who searched for keywords like "best golf clubs", "golf club reviews", "buy golf clubs" etc. This way, you know they are in-market for what you sell.
We've found that custom intent audiences tend to convert very well, since you're reaching people at the moment they're actively researching a purchase. Plus, the cost per view is often much lower than advertising on Google Search, since you're not competing with other advertisers for a limited number of ad slots.
To set this up, create a custom audience in Google Ads and add all the relevant keywords related to your product or service. You can use the Keyword Planner tool to get suggestions.
2. Remarketing
Remarketing is another essential tactic in our playbook. With remarketing, you can show ads to people who previously interacted with your website or YouTube channel. You can create different remarketing lists based on the specific actions they took, like visiting a product page, starting a free trial, or watching a certain amount of a video.
We recommend setting up multiple remarketing campaigns to lead people through your funnel. For example:
- Campaign 1: Targets people who landed on your site but didn't convert. Use ads to overcome objections and drive them back.
- Campaign 2: Targets people who started your lead gen or purchase flow but didn't complete it. Offer an incentive to finish signing up.
- Campaign 3: Targets people who converted into a lead or customer. Show them how to get the most out of the product, or offer an upsell.
This full-funnel remarketing approach allows you to tailor your messaging and offer to each prospect's stage in the journey and keep guiding them toward your ultimate conversion goal.
3. Similar audiences
Similar audiences allow you to reach new people who share characteristics and behaviors with your existing remarketing audiences. This is a great way to scale your prospecting while still focusing on people more likely to be interested in what you offer.
We've found similar audiences to be hit or miss. The similar audience algorithm seems to work better for search campaigns than for YouTube campaigns, in our experience. It's worth testing, but don't expect similar audiences to perform as well as your remarketing or custom intent audiences from the start.
4. In-market audiences
In-market audiences are one of the best ways to reach people actively shopping for products or services like yours. Google looks at people's recent search and browsing behaviors to infer what they're in the market for.
Whenever possible, we highly recommend layering in-market audiences onto your targeting. They almost always boost conversion rates, since you're reaching people at the crucial moment they're considering a purchase. In-market is one of the strongest signals of intent and purchase readiness available.
5. Life events
Life events targeting allows you to reach people based on important life milestones like graduating college, getting married, moving, or retiring. If your product or service is a common purchase around one of these major life events, this is a great way to get in front of people at the right time.
6. Customer match
Customer match is a newer feature that we're very excited about. It allows you to upload a list of your customers' email addresses and show video ads directly to them. You can also create similar audiences based on your customer list to prospect for new customers with shared characteristics.
Customer match is the ideal way to re-engage past customers, drive repeat purchases, announce new products, and keep your brand top of mind. When you combine customer match with your other first-party data, you can run incredibly targeted campaigns. With the phasing out of cookies, these first-party lists are becoming more and more valuable.
Section 4: YouTube ad creative best practices
Good ad creatives are the key to connecting with your audience, keeping them engaged, and inspiring action. Here are some proven tips and examples for producing winning YouTube ad creative in 2024:
1. Grab attention quickly
In today's fast-paced mobile viewing environment, your video ad has to grab people's attention within the first 5 seconds before they click "skip". Use punchy copy, eye-catching visuals and intriguing hooks to get them locked in right away.
The "ABCD" framework is a great place to start:
- Attention: Grab people's attention in the first 6 seconds with a bold claim, question, or pattern interrupt. If your hook isn't interesting enough, nothing else matters because they'll skip.
- Branding: Feature your brand name and logo prominently in the first 6 seconds, because many won't watch past that. Don't wait until the end to introduce yourself.
2. Keep viewers engaged
Assuming your hook is strong enough for viewers to stick around, you then need to keep them watching past the 15-second mark, after which they can skip. Focus the first 15 seconds on your most compelling message and get to the point fast.
- Continue: Keep viewers engaged beyond the 15-second mark with storytelling, social proof, and by teasing the payoff to come. Build an emotional connection and give them a reason to keep watching.
- Direct: End with a clear call-to-action telling viewers exactly what to do next, whether it's visit your site, download an app, or add to cart. Your CTA should be the logical next step after everything you've said.
3. Design for sound-off viewing
Given that more than 50% of YouTube ads are viewed on mobile with the sound off, it's crucial that your video is designed to work without audio. Use caption overlays to convey your key points and branding. Don't rely on dialogue or voiceover alone to get your message across.
4. But, prioritize sound quality
On the flip side, for the folks who do watch with sound, having clear, high-quality audio is a must. Tinny, echoey, or hard-to-hear sound is a great way to get people to hit the back button.
5. UGC-style creative works well
You don't need a Hollywood production budget or fancy animations to win on YouTube. We've found that simple, User generated content (UGC) ads often outperform more polished commercials, especially for direct response ads (DR ads).
You can shoot highly effective YouTube ads with just an iPhone, ring light and nice background. Focus on nailing the hook, delivering value, and making an authentic connection. Avoid coming off as too "salesy" or staged.
6. Test, test, test
The key to finding winning video ads is testing a variety of hooks, styles and angles, then doubling down on what moves the needle. We like to start with at least 3-5 creative variations in a campaign, each with a distinct theme or messaging approach.
For example, let's say you have a new photo editing app. You might test ads with the following hooks:
- Transform your photos in one tap
- The easiest way to make your photos pop
- The secret tricks pros use to edit photos
- Are you making these common photo editing mistakes?
- New AI tool helps anyone edit like a pro
Run these ads head-to-head until each has at least a few thousand views. Then compare click-through and conversion rates to identify the top performers.
Take your winners and run a fresh round of tests to validate the results and find even stronger challengers. Aim to always have a stable of proven winners to scale and fresh variations to test.
7. Refresh every 4-8 weeks
Unlike static banner ads which can fatigue quickly, we've found that video ads tend to have pretty long shelf lives on YouTube, often 2-3X longer than on Facebook. It's not uncommon for some controls to perform for 2-3 months before showing signs of fatigue.
That said, we still recommend launching new creative every 4-8 weeks to keep audiences engaged and avoid burning out. You can often get extra mileage by simply refreshing your top ads with new hooks, edits, or extensions before rotating in entirely new concepts.
Section 5: YouTube ad launch strategy & budgeting
Finally, let's walk through our recommended process for launching and optimizing a new YouTube ad campaign in 2024:
1. Map out your funnel: Start by listing out the key conversion actions you want viewers to take, like visit site, sign up for emails, register for a webinar, start free trial or make a purchase. Assign a target cost per action (CPA) for each conversion event.
2. Produce creative variations: Next, write and shoot at least 3 video ad variations to start. Focus on distinct hooks and angles, but make sure each ad aligns with the ABCD framework. Consider both short (15-30 seconds) and long (60-90 seconds) versions.
3. Set your testing budget: As a rule of thumb, allocate at least 10-20X your target CPA for an initial testing budget for each new creative concept. This ensures each ad has enough runway to optimize and generate statistically meaningful results. Of course, the right testing budget ultimately depends on your product, audience size and CPA goals.
4. Launch ads in experiment: When you're ready to go live, use the Google Ads Experiments tool to set up an A/B test for your campaign. Launch your ad variations using either Maximize Conversions or Target CPA bidding, depending on your goals. Let the test run until each ad has at least a few thousand impressions.
5. Evaluate results and iterate: Once you start getting conversion data, compare performance and identify the ads with the lowest cost per conversion. But don't just turn off the "losers" - look for insights into which messaging themes are resonating to inform future tests.
For example, if the two ads that mentioned "free shipping" are getting the most sales, that's a clue that your audience cares about free shipping. Consider making that a key part of your messaging strategy going forward and test more ads with that theme.
6. Scale the winners: Take your top 1-2 performers and start scaling up spend on them. But don't just set and forget. Continue monitoring performance closely and adjusting bids, budgets and targeting as needed to maintain efficiency at higher spend levels.
7. Always be testing: As you scale, set aside 10-20% of budget to continue testing new ad creative, targeting, and placements. The goal is to always have a pipeline of new concepts to replace fatigued creative and beat your controls. We've found it helpful to set up evergreen "testing campaigns" that are always on and introducing fresh ads into the mix.
8. Implement full-funnel retargeting: After a week or so, set up remarketing campaigns to stay in front of all the engaged audiences you've built. Use specific remarketing lists and tailored messaging for each key stage of the funnel like:
- Viewed certain % of key videos
- Visited product or pricing pages
- Started checkout but didn't purchase
The more relevant and timely your retargeting is, the higher your conversion rates will be.
9. Test new ad formats: As you optimize your campaigns, consider testing new ad formats like bumpers and in-stream on Shorts to expand your reach and capture demand further up the funnel. These formats can be especially effective for driving awareness and interest before hitting prospects with your DR-focused in-stream ads.
10. Monitor frequency and fatigue: Keep a close eye on your ad frequency and view-through rates to spot signs of creative fatigue. If you see view rates dropping and frequency climbing, it's time to refresh.
We recommend keeping frequency under 4-5 per week for most audiences. If you have a super niche audience you're hitting with multiple campaigns, you may need to refresh even more often to avoid annoying people.
On the flip side, if an ad is still getting great view rates and conversions after 4+ weeks, let it ride! We've had some control ads perform for 2-3 months before needing replacement. Just make sure to always have new concepts ready to go when the time comes.
Conclusion
YouTube ads remain one of the most powerful ways to reach your target customer and drive measurable results here in 2024. By choosing the right mix of ad formats, bidding strategies, targeting and creative approaches, you can get your message in front of the right people at the right stage of their journey.
The key is committing to ongoing testing and optimization. Don't get complacent with your ads or assume you've found the "perfect" creative or audience. Start with the best practices we've outlined here, and let data guide your approach.
