Advertising and targeting
How Does YouTube Advertising Work?
There are two main ways to advertise on YouTube: influencer marketing, where a brand-aligned influencer promotes your product on their own channel, and in-stream ads, where your own video runs in front of relevant content and you pay nothing until someone clicks or watches past 29 seconds.
Last updated 31 August 2026
Running time 2:18Watch it
What does this video cover?
- 01Since its emergence in 2005, YouTube has grown massively in popularity, from sharing funny videos and watching music videos to becoming one of the most effective hubs for accessing massive audiences and generating cost-effective conversions online.
- 02Influencer marketing works by a business selecting an influencer that fits the brand and its key values, and that influencer then advertising the product or service on their channel and directing customers to the website.
- 03Influencer marketing works well because it gives the customer the visual opportunity to see the product or service first hand, which is great for brand awareness.
- 04In-stream ads are a massively cost-effective way of advertising on YouTube.
- 05For in-stream, all you need to do is create a video that educates the audience and contains calls to action.
- 06Through highly targeted advertising, your video ad will appear in front of other videos on YouTube that are relevant to the audience you want to target.
- 07You do not pay until someone either clicks on the ad or watches past 29 seconds, which is why it is so cost effective.
Full transcript
Hi guys, it is Katie from s.media, and today I want to talk to you about how advertising works on YouTube.
I do not think it is a secret that since its emergence in 2005 YouTube has grown massively in popularity. From the days of sharing funny videos and then watching music videos, it is now one of the most effective hubs for accessing massive audiences and generating cost-effective conversions online.
There are a couple of ways in which you can advertise on YouTube. One of those is through influencer marketing. Influencer marketing works by a business selecting an influencer that fits the brand and its key values. This influencer will then advertise the product or service on their channel and direct customers to the website. While that is obviously great for traffic and online conversions, it also works very well because it gives the customer the visual opportunity to see the product or service first hand. That is great for brand awareness.
The second way in which you can advertise on YouTube is through something called in-stream ads. In-stream ads are a massively cost-effective way of advertising on YouTube. All you need to do is create a video, make sure that it educates the audience and contains calls to action, and then through highly targeted advertising your video ad will appear in front of other videos on YouTube that are relevant to the audience you are wanting to target. You do not pay until someone either clicks on the ad or watches past 29 seconds, which is why it is so cost effective.
Those are just a couple of the ways in which you can advertise on YouTube. If you have any questions or want to know any more, please send me a message or email me and I would be happy to help.
Where next?
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