The Ultimate Guide to YouTube Video Ad Formats

google ads video formats in-feed video ads in-stream ads youtube youtube shorts advertising youtube video ads May 26, 2025

YouTube remains one of the most powerful platforms for digital advertising in 2025—but success depends on choosing the right video ad format for your goals. In a recent expert discussion, Aaron Young sat down with Cory Henke, founder of Variable Media, to break down what works—and what doesn’t—across YouTube’s top video ad placements. Here’s what marketers need to know.

This guide breaks down the major YouTube ad formats—in-stream, in-feed, Shorts, bumper ads, and more—along with real-world examples, creative tips, and campaign strategies. You'll learn when to use each format, how to structure your creatives, and how to optimize performance using Demand Gen and audience targeting tools. If you want better results from your video campaigns, this is your playbook.

Key Takeaways

YouTube offers multiple ad formats, including in-stream, Shorts, in-feed, bumper, and masthead—each suited for different stages of the marketing funnel.
In-stream ads are ideal for storytelling and direct response, while YouTube Shorts work best for rapid engagement with UGC-style content.
In-feed video ads appear on the homepage and search results, and behave like clickable organic content—great for brand storytelling.
Creative must match format: Longer ads need narrative hooks, while Shorts need quick value delivery and authentic visuals.
Demand Gen campaigns allow advertisers to target specific formats (Shorts, in-stream, in-feed) and audiences with greater control than legacy Video Action campaigns.

Types of YouTube Ad Formats (and When to Use Each One)

YouTube offers three primary video ad formats, each designed for specific goals—from building brand awareness to driving conversions.

1. In-Stream Ads (Skippable Pre-Roll)

In-stream ads are one of the most common YouTube ad types. These skippable video ads appear before, during, or after YouTube videos and are best suited for longer-form content (typically 60–90 seconds).

They’re ideal for storytelling, product demonstrations, and direct response marketing.

Best practices for in-stream ads:

Grab attention with a strong hook in the first 5–10 seconds.
Display your brand name or logo early to boost recall.
Present a problem and solution clearly within 30 seconds.
A/B test different creatives (tone, visuals, actors) to find top performers.

2. YouTube Shorts Ads (Vertical Video Ads)

Shorts ads are YouTube’s answer to TikTok and Instagram Reels. These vertical video ads (15–30 seconds) appear in the Shorts feed and are ideal for mobile-first, high-engagement content that feels native and authentic.

This ad format is perfect for user-generated content (UGC), influencer clips, and punchy, direct messages.

Best practices for YouTube Shorts ads:

Start fast—deliver value in the first 1–2 seconds.
Use real people, testimonials, or voiceovers for authenticity.
Keep editing casual and platform-native.
Always include a clear CTA before the video ends.

3. In-Feed Video Ads (Formerly Discovery Ads)

In-feed video ads appear on the YouTube homepage, search results, and watch pages. These ads blend into the platform and look like organic video content, making them great for educational content, founder stories, or product deep dives.

They rely heavily on click appeal, not autoplay, so your visual assets and headlines matter most.

Best practices for in-feed video ads:

Use a scroll-stopping thumbnail with bold visuals.
Craft an engaging title to spark curiosity.
Promote longer content that educates, inspires, or tells a story.
Optimize text overlays and thumbnail design to increase CTR.

Choosing the Right YouTube Ad Format for Your Goals

Not all YouTube ad formats serve the same purpose—and choosing the wrong one can result in wasted budget or weak engagement. The right format depends on your campaign objective, target audience, and creative assets.

Here’s how to match ad format to business goals:

Brand Awareness:
Use YouTube Shorts or in-stream ads with attention-grabbing intros and a clear brand hook. Shorts excel on mobile and can deliver cost-effective reach with punchy, high-energy content.
Consideration & Engagement:
In-feed video ads are ideal when you want users to choose your content. These ads appear natively in search results, recommendations, and the YouTube homepage—great for tutorials, founder stories, or product demos.
Conversions:
In-stream ads (especially when paired with Demand Gen or Max Conversions bidding) are perfect for retargeting or bottom-funnel messaging. Focus on strong CTAs, testimonials, and benefit-led storytelling.
Cross-Channel Retargeting:
Repurpose top-performing video creatives across YouTube, Shorts, Google Display, and Gmail via Demand Gen campaigns for cohesive brand follow-up and remarketing.

Pro Tip: If you’re unsure which ad format to start with, test in-feed ads first. They’re affordable, don’t require autoplay, and help you gather audience engagement data.

YouTube Pre-Roll Ad Best Practices (Skippable + Non-Skippable)

Pre-roll ads on YouTube are video ads that play before a viewer’s selected content. They come in two main types:

Skippable In-Stream Ads – Viewers can skip after 5 seconds
Non-Skippable In-Stream Ads – Viewers must watch the full 15 seconds

Each format has its own strengths—but to succeed with either, your creative must be engineered for short attention spans and quick brand impact.

Skippable In-Stream Ads: Hook Fast or Lose Viewers

With skippable ads, you only have about 5 seconds to grab attention before a viewer can click "Skip Ad." The key is to make your point early.

Best practices for skippable in-stream ads:

Open with a strong hook – Use bold visuals, provocative questions, or unexpected moments to stop the scroll.
Show your brand fast – Display your logo and product within the first 3–5 seconds to build brand recall even if users skip.
Introduce the problem quickly – Clarify what’s at stake and why viewers should care.
Get to the CTA early – Don’t save the call-to-action for the end. Repeat it at least twice.
Design for sound-off viewing – Use captions and on-screen text to convey your message.

Pro Tip: Test multiple variations with different hooks, tones, and visuals. YouTube’s algorithm will favor the creative that keeps users watching.

Non-Skippable In-Stream Ads: Maximize the Full 15 Seconds

Non-skippable pre-roll ads are limited to 15 seconds, but you’re guaranteed the viewer’s attention for the entire duration. That gives you a unique opportunity—but also means every second counts.

Best practices for non-skippable in-stream ads:

Plan your script like a mini commercial – Structure it with a clear opening, message, and CTA.
Use tight pacing – Don’t drag out your visuals or copy. Keep energy high and transitions quick.
Build toward the CTA – Since users can’t click away, use the full time to build interest and lead into a compelling offer.
Stay focused – Avoid trying to communicate too much. One core message is plenty.
Match the tone to your audience – Humorous? Emotional? Direct? The right tone increases retention and resonance.

Non-skippable ads work best when used for remarketing or product launches, where brand familiarity is already established.

YouTube vs Meta: Platform Differences for Video Advertising

While Meta video ads and YouTube video ads can often use similar creative, there are key platform-specific considerations:

Engagement: Meta platforms (Facebook, Instagram) drive likes, shares, and comments. YouTube drives longer watch times and stronger brand recall.
User Intent: People visit YouTube specifically to watch videos. This makes it ideal for delivering value-rich, educational, or entertaining content.
Session Duration: YouTube viewers typically stay on the platform longer per session, which increases the opportunity for deeper brand engagement.

Tailoring Creative to Each YouTube Ad Format

To succeed with YouTube video marketing, the creative must match the format:

Shorts: Use UGC, voiceovers, and testimonials. Avoid content that feels like an obvious ad.
In-Stream: Build longer, story-driven videos. Use different hooks and visual variations to test performance.
In-Feed: Focus on inspiring content and founder-led storytelling. Optimize visual assets to stand out in the feed.

Creative Testing Strategies for YouTube Video Ads

Cory Henke emphasizes the importance of testing creative variations. Here’s how:

Start with 2–4 versions of your ad with distinct differences (e.g., gender, location, tone).
Optimize the first 10 seconds for in-stream ads.
Test captions and creator types for Shorts.
Analyze click-through rates on in-feed ads to determine effectiveness.
Target a 50–70% view rate for strong performance indicators.

Using Demand Gen for YouTube Video Campaigns

With Google Ads shifting from Video Action Campaigns to Demand Gen, advertisers now have more control and segmentation capabilities. You can now run campaigns specifically for:

Shorts-only
In-stream-only
In-feed-only

This allows for customized video ad strategies based on available creative and audience intent. Demand Gen also enables audience segmentation based on customer lists, interests, or specific YouTube channels—perfect for high-precision targeting.

👉Google Ads Demand Gen: Key Updates, Best Practices, and 2025 Strategies

Budgeting and Testing Timeline

Start with modest budgets (e.g., $5/day using YouTube Studio boosts or in-feed campaigns).
Run video ads for 10–14 days to gather meaningful data.
Use view counts (especially past the 30-second mark) and click-through rates to evaluate success.
Iterate rapidly based on which creative performs best.

Starting Video Ads from Scratch: What New Advertisers Should Do

For businesses that are new to video ads or just launching their YouTube ad strategy, Henke recommends:

Begin with in-feed ads for cost-effective branding.
Use existing videos from your YouTube channel to test engagement.
Repurpose your best-performing TikToks or Instagram Reels as YouTube Shorts.
Leverage the power of long-form storytelling for in-stream campaigns.

Why YouTube Video Advertising is a Smart Investment

With lower CPMs than Meta and more advanced audience targeting, YouTube ads offer a strong return on investment—especially for brands that can tell a compelling story. As YouTube continues to push Shorts and enhance Demand Gen capabilities, advertisers have more tools than ever to scale their presence cost-effectively.

FAQ

What are the main types of YouTube video ad formats?

The primary formats are In-Stream Ads (skippable and non-skippable), YouTube Shorts Ads, and In-Feed Video Ads (formerly Discovery Ads). Each format serves a different purpose based on user behavior and ad placement.

What’s the difference between in-stream and in-feed video ads?

In-stream ads play before, during, or after a video and can be skippable or non-skippable. In-feed ads appear on the YouTube homepage, search results, or alongside related videos, and users must choose to click and watch.

Are YouTube Shorts Ads worth using?

Yes, especially in 2025. Shorts are growing rapidly and work well for short-form, high-impact content. They're ideal for repurposing TikToks, Reels, or testimonials in vertical format.

How long should my YouTube video ads be?

In-stream skippable: 30–90 seconds
Non-skippable: 15 seconds max
Shorts: 15–30 seconds
In-feed: Varies, but longer content like tutorials or product walkthroughs performs well

How much should I budget for YouTube ads?

You can start small—many advertisers begin with $5–$20/day. Use that to test creative and placements, then increase budget once you find what works.