In short: YouTube is bought through Google Ads with two different families — Video campaigns (reach and consideration) and Demand Gen (the visual, action-oriented one, which also runs on Discover and Gmail). Neither is a substitute for Search: they create demand, they don't harvest it, and that is why they are measured with patience.
YouTube is the world's second search engine and its largest video platform, and Google Ads sells its advertising. In 2026 that advertising is split between two families: Video campaigns (awareness and reach) and Demand Gen (the action-oriented visual campaign across YouTube, Discover and Gmail). This lesson introduces both.
Which ad formats are there on YouTube?
| Format | What it is | How you pay | What for |
|---|---|---|---|
| Skippable in-stream | Before/during a video; skippable after 5 s | Per view (CPV: 30 s or an interaction) or CPM | The workhorse: awareness and consideration |
| Non-skippable in-stream | Up to 15-30 s with no skip | CPM | The full message guaranteed; more expensive and more intrusive |
| Bumper | 6 seconds, non-skippable | CPM | Brand recall, complements the longer formats |
| In-feed | A thumbnail in YouTube results and recommendations | Per click/view | People who choose to watch your video |
| Shorts | Vertical, between Shorts | Depends on the campaign | Young, mobile reach |
With CPV you only pay if the person watches 30 seconds (or the whole video, if it is shorter) or interacts: those who skip after 5 seconds are free. That makes skippable a cheap format for reach... and explains why the first 5 seconds of the video are the only thing that matters.
What is Demand Gen?
Demand Gen replaced the old "video action campaigns". It is a campaign with images and videos that shows on YouTube (in-stream, in-feed, Shorts), Discover (the mobile feed) and Gmail, optimised for conversions with Smart Bidding, with rich audiences (your lists, interests, lookalike segments based on your customers) and with the option of a product feed. Think of it as "Google's modern Display": visual creative, well-defined audiences, a conversion objective.
Differences from PMax: Demand Gen lets you choose audiences and networks and see reports by placement; PMax does not. For anyone who wants reach with some control, Demand Gen is the middle ground.
Is YouTube worth it in a small account?
Honestly, less than it looks. Video and Demand Gen shine for brands with an awareness budget and with creative; in a lead generation account on €30/day they usually take away from Search. The uses that do pay off at a small scale:
- Remarketing in Demand Gen: showing your offer on YouTube and Discover to people who already visited the site. Cheap and measurable.
- An explainer video for people who already know you (customer lists, visitors): consideration, not cold acquisition.
- One-off launches with 6-second bumpers to a very specific audience.
What do you need to know before starting with video?
- The creative rules: without a decent video (even one filmed on a phone, with a clear message in 5 seconds), there is no campaign. Google can generate a video from images; it is usually worse than a simple one of your own.
- View conversions inflate things: a "conversion" after seeing (not clicking) an ad is counted with generous windows. Judge by click.
- Audiences decide it: a video campaign aimed at "everybody" is burnt money; aimed at your remarketing list or a well-defined custom audience, it can be profitable.
- Google video partners: like search partners, inventory outside YouTube with uneven quality; review it and, when you start, exclude it.
💡 Ninja trick: Demand Gen has its own module at Advanced level, and its own script: the Demand Gen Optimizer watches creative fatigue (when an image stops working because people have seen it too often), compares audiences and pauses whatever is burnt out. None of that is needed until you have a campaign running with data; for now, stick with remarketing and with the 5 seconds.
What you should remember
- Skippable in-stream (CPV: you pay at 30 s) is the base format; 6 s bumpers for recall.
- Demand Gen = visual creative + chosen audiences + conversions, on YouTube, Discover and Gmail; more control than PMax.
- In small accounts: remarketing and consideration, not cold acquisition.
- Creative in 5 seconds, click conversions, specific audiences, video partners reviewed.