How Youtube Ads dominate the internet?

Do you know how many subscribers the No. 1 Youtube channel has? The Indian music channel “T-series” stands in first place with more than 213 million subscribers.  With nearly 2 billion active users worldwide, Youtube is one of the most visited platforms on the internet. Almost 42.9% of all internet users access Youtube monthly. Youtube is the internet’s second most popular social media platform, trailing only Facebook. With the huge number of people visiting this platform every day, Youtube is considered one of the most successful ways to reach people and promote your product through Youtube Ads.

How much does Youtube make through its Ads? :-

According to statistics, Youtube’s estimated revenue from global advertising is around $28.84 billion in 2021 alone, making it one of the top companies in the world.

India has the most Youtube users (approximately 225 million), followed by the United States with 197 million. Among the top 10 biggest viewers, the United Kingdom averages the most views per person.

Quarterly, YouTube’s ad revenue is over $7 billion, where on average the individual creators receive between $3–$5 per 1000 views.

Why should we invest in Youtube Ads?:-

The average age of YouTube users is 15–30 years old, and women outnumber men globally. With such a highly valuable user base, along with its immense buying capability, the Youtube platform is considered to be the most influential marketplace in the world.

Youtube ads reach customers by accurately targeting them based on their needs. Therefore, resulting in more conversions along with huge profits. In 2020 Apple Inc spent around $ 237.15 million for promoting their product using Youtubes Ads and in return, they made huge profits in the following years. That’s how powerful Youtube Ads are.

How do Youtube Ads work?:-

Ever since Google bought YouTube in 2006, several updates have been made to the platform to be ad-friendly. Google collects all user information, such as browser and search history, geographical data, and so on. After that, with the help of Google’s machine learning algorithm, ads are personalized to the customers based on the collected user information. Hence, targeting the right customer based on their needs. This results in great profit due to a high conversion rate.

Example:- If a cricket enthusiast watches cricket videos regularly, then the algorithm will automatically detect this information and start to display ads for products like a cricket bat, gloves, and other sports gear. Since this user will most likely show an interest in buying these products, companies make an immense profit using Youtube ads.

The most important advantage is that our budget and expenses for publishing the ads on Youtube can be easily monitored and customized using Adwords and Adsense.

Types of Youtube ads:-

There are mainly 5 types of YouTube ads…

  • In-stream skippable ads
  • In-stream non-skippable ads
  • In-feed video ads
  • Bumper ads
  • Masthead ads

In-stream skippable ads:-

This type of ad can be used when you want to play your ads before, during, or after other videos. However, after 5 seconds, the viewer has the option to skip the ad.

In-stream non-skippable ads:-

This type of ad is 15 seconds or shorter, and it can be used when you want to play your ads before, during, or after other videos, but the viewers don’t have the option to skip your ad.

In-feed video ads:-

This type of ad can be used when you want to display your ads on Youtube search results, alongside related Youtube videos, as well as on the Youtube mobile homepage.

Bumper ads:-

This type of ad is only 6 seconds or shorter, and it can be used when you want to play your ads before, during, or after other videos, but the viewers don’t have the option to skip your ad.

Masthead ads:-

This type of ad appears on top of the Homepage of Youtube which is 30 Seconds or shorter with the audio on mute. The viewer as to unmute that ad to listen to it. This type of Ad can be used when you want to drive awareness for a new product or service or reach a massive audience in a short period (for example, a sales event). 

However, this Ad can only be done by reservation through a Google sales representative.


1. Why are YouTube Ads so effective?

YouTube’s vast user base and the platform’s ability to target ads based on user preferences make it an effective tool for advertisers seeking high conversion rates and profits.

2. How much revenue does YouTube generate from ads?

In 2021, YouTube’s global advertising revenue was estimated at $28.84 billion, highlighting its significance in the digital advertising space.

3. What is the demographic of YouTube users?

The majority of YouTube users are aged between 15 and 30 years old, with a global presence where women outnumber men.

4. How does YouTube ad targeting work?

YouTube uses Google’s machine learning algorithms to personalize ads based on user information like search history, leading to high conversion rates.

5. What are the types of YouTube ads?

YouTube offers five main ad types: In-stream skippable, In-stream non-skippable, In-feed video, Bumper, and Masthead ads, each with unique characteristics.

6. Can YouTube ads be skipped?

Yes, In-stream skippable ads allow viewers to skip the ad after 5 seconds, unlike non-skippable and bumper ads.

7. How are YouTube ads priced?

Advertisers can control their budget and expenses through AdWords and AdSense, with costs varying by ad type and targeting.

8. What is the reach of YouTube ads?

With nearly 2 billion active users, YouTube ads have the potential to reach a significant portion of the internet’s users worldwide.

9. Why invest in YouTube ads?

YouTube’s diverse and extensive audience, along with its targeting capabilities, offers advertisers a lucrative opportunity for high returns on investment.

10. How effective are YouTube Masthead ads??

Masthead ads appear at the top of the YouTube homepage, ideal for driving awareness and reaching a large audience quickly, but they require reservation through a Google sales representative.