The Ultimate Guide to YouTube Display Advertising in 2025

What is YouTube display advertising

YouTube display advertising is a type of online ad that appears alongside YouTube videos, in search results, or on the homepage. These ads usually include images, text, or banners to catch viewers' attention. They help businesses promote products, services, or brand messages to people watching videos. With targeting features, these ads reach specific audiences based on interests, age, or location.

Types of YouTube display ads

YouTube has different types of ads to help businesses connect with their audience in unique ways. Each of them serves a specific purpose, whether it's boosting visibility, increasing engagement, or promoting products. Let's explore the most common types of display ads on YouTube:

• Banner ads

Banner ads are static image ads that appear on the top or side of YouTube's homepage or video pages. They are great for increasing brand visibility without interrupting the viewer's experience. These ads are simple but effective for driving clicks and promoting your brand with a strong visual presence.

• Overlay ads

Overlay ads are semi-transparent ads that appear at the bottom of YouTube videos. They let businesses display banners or text ads. These YouTube display ads are ideal for quick promotions and work well for driving website traffic or highlighting offers.

• Bumper ads

Bumper ads are short, non-skippable video ads lasting up to 6 seconds. They appear before or during videos and are great for delivering a quick and memorable brand message. These ads are ideal for creating awareness while keeping the viewer's experience smooth.

• Skippable video ads

Skippable video ads are longer ads that play before, during, or after a video. Viewers can skip them after 5 seconds, making them a flexible option. They help businesses reach more people and provide enough time to explain products or services.

• Non-skippable video ads

Non-skippable video ads are shown before or during videos and must be watched in full, usually lasting 15–20 seconds. They are highly effective for sharing a complete message, but they require engaging content to hold the viewer's attention.

How to display ads on YouTube videos

Displaying ads on YouTube videos is a great way to promote a brand and reach more people on social media. You can set up ads through Google Ads, where you can choose different ad formats to match your goals. Ads appear before, during, or after YouTube videos, enabling you to target specific viewers. Here's how you can start displaying ads on YouTube videos effectively:

STEP 1
1. Set up a Google ads account

First, create a Google Ads account if you don't already have one. Link your YouTube channel to the account, letting you create and manage display ads campaigns directly.

STEP 2
1. Choose your ad format

Select the right ad format that fits your campaign goals. Whether it's skippable, non-skippable, or bumper ads, picking the correct format ensures your message reaches viewers in the best way possible.

STEP 3
1. Define your target audience

Target specific viewers based on demographics, interests, or behaviors in the Audience Manager. This step ensures that your display ads on YouTube videos are shown to the most relevant people.

How to estimate the YouTube ads display cost

Estimating the cost of YouTube display ads depends on several factors, such as the type of ad, target audience, and bidding strategy. You can set a daily, monthly, or total campaign budget, and costs are usually based on either Cost Per View (CPV) or Cost Per Thousand Impressions (CPM). The more competitive your target people and keywords, the higher the cost may be. YouTube also uses an auction system, so your budget will decide how often your ad is shown.

How to make engaging YouTube display ads with CapCut

The CapCut desktop video editor is an intuitive tool that lets you create engaging YouTube display ad video. It provides the users with a range of features from basic video editing to advanced video generation from written scripts. With its user-friendly interface, you can produce ads that capture attention and boost viewer engagement.

Create a display YouTube ad video using the CapCut desktop video editor

To create a display YouTube ad on CapCut, first download and install it from the official website. After installation, open the editor, create your video, and export it for use in your YouTube ad campaign. You can download CapCut by clicking the button below.

STEP 1
1. Upload the video

Open CapCut's desktop video editor, click on "Import," or drag your video directly into the workspace. Once it's uploaded, move it to the timeline to begin the editing process.

STEP 2
1. Edit and customize the video

Add text to your video and click "Text">"Default text"> "Text to speech" tool to create voiceovers with your chosen voice. Make the audio more fun by using 350+ fun voice filters. You can also generate subtitles by going to "Captions," picking the "Spoken language", and clicking "Generate" to make your video accessible to more viewers. Finally, use transitions between scenes to make your video flow smoothly and look more professional.

STEP 3
1. Export and share

When you're satisfied with your edits, export the video and save it in the desired format. You can then upload the final version to YouTube by clicking on "Share."

Key features

There are many features in the CapCut desktop video editor to help you create professional-quality videos with ease. Here's a quick look at some of its key features:

• Auto-reframe videos

With auto reframe, you can adjust your video to fit different aspect ratios, perfect for creating content across platforms. This saves time and ensures your videos look great on any screen size.

• Add multilingual subtitles

Add subtitles to videos in multiple languages, making your ad videos more accessible to a global audience. It helps improve engagement and reach by providing accurate translations.

• Customize text color and size

Easily modify the color and size of text in your videos to match your brand's style or message, helping you create eye-catching titles, captions, and overlays.

• Remove flicker instantly

Quickly remove video flickers to improve the overall viewing experience. This is particularly useful for correcting issues in low-light footage.

• Add keyframe animations

Apply dynamic animations to specific parts of your video using keyframes. It ensures smooth transitions and motion effects that enhance the visual appeal.

5 tips to boost your YouTube display ads

Maximizing the effectiveness of your YouTube advertising requires a strategic approach. By fine-tuning your video content, choosing the right ad format, and utilizing targeting tools, you can improve the impact of your display ads on YouTube. Here are 5 tips to help you boost your ads on YouTube:

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1. Optimize your video content

Capturing your audience's attention in the first few seconds is key. Whether it's through engaging visuals, storytelling, or asking intriguing questions, make sure your videos grab viewers from the start. For instance, a quick 6-second ad could leave a good impression on viewers and increase brand recall.

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1. Choose the right ad format

Different ad formats serve different purposes, so selecting the right one can greatly impact your success. For display YouTube ads, skippable in-stream ads are great for brand awareness, while non-skippable ads ensure your message is delivered completely.

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1. Consider using true-view ads

TrueView ads enable viewers to skip after 5 seconds, giving them the power of choice. This increases the likelihood of engagement, as viewers who choose to watch your ad are more likely to consider your product. For example, you could create an in-stream ad that highlights a new product and encourages viewers to interact by providing them with a special discount.

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1. Leverage targeting options

Use robust targeting options to ensure your YouTube display ads reach the right audience. Demographic targeting, interest-based targeting, and remarketing are great ways to tailor your message to the right viewers. For example, if you sell athletic gear, target individuals interested in fitness or sports, ensuring your ad reaches those who are most likely to convert.

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1. Utilize ad extensions and cards

Maximize engagement with YouTube's ad extensions and cards. End screens and interactive cards can encourage viewers to explore more of your videos or visit the website. For example, add a card during your video that links to a product page or a related video. This will increase viewer interaction and drive traffic to your channel.

Conclusion

In conclusion, YouTube display advertising provides a great opportunity to engage a wide audience and grow your brand. By choosing the right ad formats and targeting the right viewers, you can make your ads more effective. Optimizing your video content ensures that your message reaches viewers in the best way possible. To enhance your ad creation process, consider using the CapCut desktop video editor, as it makes video editing easy and efficient.

FAQs

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1. Can I personalize the display ads on YouTube for viewers?

Yes, YouTube lets you personalize display ads by targeting specific audiences based on their interests, demographics, and past interactions with your content. This helps ensure your ads reach viewers who are more likely to engage with them. Consider using CapCut to create customized, engaging video content for your ads.

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1. What tools help improve display ads in YouTube campaigns?

Tools like Google Ads for managing campaigns and CapCut for editing your videos can greatly improve your YouTube ad performance. Google Ads helps with targeting and budget management, while CapCut enables you to create high-quality, engaging content. Using CapCut can enhance your video's visual appeal and engagement.

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1. Can optimizing video length reduce YouTube display ads cost?

Yes, optimizing video length can reduce costs by improving viewer retention. Shorter, engaging videos often lead to a lower cost-per-view, making your ads more cost-effective. It's important to keep videos concise while still delivering your message. Use CapCut to efficiently edit and trim your videos to capture attention quickly.