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YouTube Ads Explained: Formats, Costs & How to Choose

The main YouTube ad formats, how you pay for each, how to match format to goal, and why YouTube plus Search is the full-funnel play.

VDBy Vikas Disale·8 min read

Quick answer

YouTube ads run before, during and around videos and in feeds. The main formats are skippable in-stream (pay when watched 30s or clicked), non-skippable (15s, CPM), bumpers (6s, CPM), in-feed video, and Shorts ads. Choose by goal: bumpers and non-skippable for awareness, skippable for versatility, in-feed and Shorts for consideration on smaller budgets. Conversion-focused video now runs through Demand Gen.

📢

2026 noteVideo Action Campaigns (the conversion-focused YouTube format) were upgraded into Demand Gen, with the last ones auto-migrated by April 2026. So conversion-driven YouTube now runs through Demand Gen; use standard YouTube/Video campaigns for awareness and format-specific control.

1Why YouTube

The biggest screen you’re probably not using

YouTube reaches over two billion logged-in people a month and is the most-watched platform on many connected TVs. For most Google Ads accounts it’s wildly underused — budget piles into Search while video, where you can build real demand, sits untouched.

2The main formats

Pick by length and intent

Format	What it is	You pay
Skippable in-stream	Plays before/during videos; skip after 5s	When watched 30s (or full) or clicked
Non-skippable in-stream	Up to 15s, can’t be skipped	Per impression (CPM)
Bumper ads	6s, non-skippable	Per impression (CPM)
In-feed video	Appears in search/related/feed	When someone chooses to watch
Shorts ads	Vertical, in the Shorts feed	Lower CPM/CPV — budget-friendly

Free tool

Which YouTube ad format?

Pick your goal and we’ll suggest the format (and how you’ll pay).

Your main goal

3YouTube + Search

The full-funnel play

The strongest 2026 pattern isn’t YouTube or Search — it’s YouTube feeding Search. Video exposes people to your brand and offer; they later search for you or your category and convert more cheaply, because they already know you. Accounts that pair the two consistently see lower Search CPAs over time.

💡

On a small budget?Shorts and in-feed video offer lower CPMs and CPVs — pair them with custom segments built from people who recently searched your category, so spend stays on high-relevance viewers.

Key takeaways

YouTube reaches 2 billion+ logged-in users and is heavily underused by advertisers.
Main formats: skippable in-stream, non-skippable, bumpers, in-feed video, Shorts.
You pay per view (CPV) for skippable, per impression (CPM) for bumpers/non-skippable.
Conversion-focused video now runs through Demand Gen (Video Action Campaigns moved there).
The strongest pattern is YouTube feeding Search — it lowers Search CPAs over time.

?Frequently asked

YouTube ad FAQs

What are the main YouTube ad formats?

Skippable in-stream, non-skippable in-stream, bumper ads, in-feed video and Shorts ads. Each suits a different goal and length.

How do you pay for YouTube ads?

Skippable in-stream charges when someone watches 30 seconds or the full ad or clicks, while bumpers and non-skippable ads charge per impression (CPM). In-feed charges when someone chooses to watch.

What is a bumper ad?

A six-second, non-skippable video ad charged on a CPM basis, ideal for cheap, broad awareness and reinforcing a simple message.

Which YouTube format is best for conversions?

Conversion-focused video now runs through Demand Gen, since Video Action Campaigns were upgraded into it. Pair it with Customer Match or Lookalike segments.

Are YouTube ads worth it for small budgets?

Yes, if you choose lower-cost formats like Shorts and in-feed video and target people who recently searched your category, so spend stays on high-relevance viewers.

Should I run YouTube and Search together?

Yes. YouTube exposes people to your brand so they later search and convert more cheaply. Accounts that pair the two often see lower Search CPAs over time.

→Keep learning

Related lessons

Demand Gen Campaigns

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Audience Types Explained

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Vikas Disale

Author · Digital Marketing

Vikas Disale is a digital marketer with around a decade of hands-on experience running and teaching paid search. He builds practical, example-led Google Ads training for business owners and marketers. More about Vikas →

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