If you’re not leveraging YouTube ads for your small business, you may be missing out on significant revenue opportunities. YouTube ads have proven to be highly effective in driving conversions and boosting revenue for businesses.

In this blog post, we’ll explore the key differences between in-stream ads and in-feed ads, their pros and cons, and when to use each type. With over a decade of experience in YouTube advertising, we’ll share valuable insights to help you make informed decisions for your business.

In-Stream Ads: Captivate and Convert

Skippable ads that can be skipped after five seconds

Despite initial skepticism, these ads generate results and drive conversions

Benefits:

• Low-cost views, offering great affordability

• Clickable links within the ad provide direct traffic to your website

Challenges:

• Interruptive nature, requiring a compelling hook and value add within the first few seconds

• Limited engagement compared to other ad formats.

In-Feed Ads: Engage and Impress

Videos that appear within YouTube feeds, search results, and suggested videos

Pros:

• Less interruptive, blending in with organic content

• Higher-quality views as viewers actively choose to watch the ad

• Increased engagement with the video content

Cons:

• More expensive views as users click to watch the video

• Limited options to drive traffic to external websites

• Determining When to Use Each Ad Format:

In-Stream Ads:

• Ideal for lead generation and driving website traffic

• Clickable links within the ad enable users to leave the platform and visit your website

• Well-suited for acquiring new customers due to their low-cost and direct response nature

In-Feed Ads:

• Effective for generating impressions and increasing YouTube channel visibility

• Users actively choose to watch the video based on the title and thumbnail

• Suitable for businesses focused on building brand awareness and engagement within the YouTube ecosystem

Conclusion:

Understanding the differences between in-stream and in-feed ads is crucial in developing an effective YouTube advertising strategy. In-stream ads provide cost-effective views and direct traffic to your website, making them valuable for lead generation and customer acquisition.

On the other hand, in-feed ads offer higher engagement and help enhance visibility within the YouTube platform, making them ideal for building brand awareness.

Have you experimented with YouTube ads? We’d love to hear your experiences and preferences. Share your thoughts in the comments section below. Make sure to subscribe to our YouTube channel for future videos where we dive into optimizing YouTube ad campaigns. Stay tuned!

Note: This blog post is based on our extensive experience and research in YouTube advertising.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.