basically two basic categories of advertisements are available: Video and Non-video advertisements. Video advertisements can usually be viewed before, during, and after YouTube videos. Non-video advertisements include banner and text ads, which are displayed along side the video content itself. Each of these three advertising types have their own advantages, disadvantages, and uses. In short, you can choose one or mix and match any of these three depending on your current advertising needs, budget, and desired results.
CPM:
Cost per thousand impressions is the most common type of advertisement which is offered by YouTube. A single video advertisement can cost as much as ten cents per thousand impressions, which is equivalent to about $10 for each video viewed. This is the most affordable option for a video advertisement, but the ads are only viewable by people within the United States and Canada. The disadvantage to this type of advertising is that users are not guaranteed to see the advertisement, and if the video does not meet acceptable quality and standards, then the advertiser will not be responsible for paying the corresponding fees.
Bumper ads:
A type of video ads, which play in between the video and audio of the YouTube video. These ads play for seven seconds and then fade away automatically when the video stops playing. The advantage to using video discovery ads is that users do not have to wait for the ad to load completely before seeing the ad, which saves them time. The disadvantage to using non-skippable video ads is that they can easily be blocked by blockers created by the YouTube user. The user also does not have control over the duration of the video.
The main advantage to this type of video ad is that it is visually attractive and interesting, while not actually displaying the product or service that you are trying to promote. This means that the user is not likely to click away from your website once he/she has watched your video ad. The main disadvantage to using this type of video ads is that it may not reach the maximum number of users. In fact, a study shows that the main advantage of skippable video ads is that they are the second most common form of ad on YouTube.
Video content network ads:
The main advantage of these ads is that they allow the user to search for and watch different types of videos. The main disadvantage is that the user has to subscribe to the channels that display the ads, which may not always be available. Another disadvantage is that the user may not have control over the number of times that the video can play. Since the user has to search through different channels to find relevant ads, it can take him a lot of time.
CPM (cost per thousand impressions):
This type of YouTube ad displays a cost-per-minute rate. This means that every time a visitor clicks on the ad, the advertiser will be charged a certain amount of money. As you would expect, this type of skippable ad is popular among advertisers because it is a very low cost per impression program. The only main disadvantage with this type of video ad is that if the video ad does not have a high rating, then it may not appear on the first page of the Google search engine. However, this disadvantage can be offset by creating good quality videos, since the more views you have, the more money you will earn.