YouTube ads are a highly effective way to reach your ideal audience in the most engaging way possible. They’re also incredibly flexible and connect to Google’s rich data resources. However, deciding which ad type will best achieve your goals is a delicate balancing act. For example, will you be able to drive the right return on ad spend (ROAS) with a skippable video ad, or would a masthead ad work better for your campaign?

How much is an ad on YouTube based on a bidding system for each ad placement? When you select an ad format, you’ll need to enter a daily budget that you are willing to spend per click or view. This helps prevent you from overspending on your campaign.

The cost of a YouTube ad depends on which ad type you choose from the following options:

Non-Skippable Video Discovery Ads: These 15- to 20-second ads must be watched before a user can watch their intended video. You only pay if your video is watched for at least 30 seconds or if someone clicks on your call-to-action, which counts as a view.

Sponsored Cards: These 6-second ads display content that can be related to your video—for example, mascara for a makeup tutorial.

Display Ads: These banner ads appear on the right-hand sidebar of YouTube videos and across the Google Display Network.

Masthead Ads: These large, 24-hour digital billboards are displayed on the YouTube homepage and are available for reservation only.