Quick answer: YouTube ads can work for small businesses with good video, remarketing audiences and a clear next step, but Search usually comes first.
YouTube is the world’s second-largest search engine, and its ads are bought through Google Ads. For small businesses, YouTube works best as a way to build familiarity and trust, or to retarget people who’ve already visited your site.
The main ad formats
- Skippable in-stream ads: play before or during videos and can be skipped after 5 seconds. You typically pay when someone watches 30 seconds (or the whole ad if shorter) or interacts.
- Non-skippable in-stream ads: 15 seconds or less, can’t be skipped. Good for reach, more expensive per view.
- Bumper ads: 6 seconds, non-skippable. Good for reminders.
- In-feed video ads: appear in YouTube search results and recommendations. People choose to click and watch.
- Shorts ads: vertical ads between YouTube Shorts.
Which campaign type?
- Video campaigns for awareness and consideration (views and reach).
- Demand Gen campaigns for driving actions such as enquiries or sales. They can run across YouTube (including Shorts), Discover and Gmail, using video and image ads.
- Performance Max can also include YouTube.
What to make
- Hook in the first 5 seconds. State the problem or show the result straight away, before people skip.
- Show your face or your work. Real people and real jobs build trust.
- One clear message and one call to action.
- Captions, because many people watch without sound.
- Make vertical versions for Shorts.
You don’t need a big production. A well-planned phone video can work well.
Good first campaigns
- Remarketing: show a short video to people who visited your website but didn’t enquire.
- In-feed ads on how-to topics related to your service, leading to helpful content.
- Local awareness for a new business or service area.
Measuring results
YouTube often influences people who later search for you or come back directly, so last-click conversions undercount it. Look at view-through conversions, brand searches and overall enquiries alongside direct conversions. Read attribution: which ad gets the credit.
Sources and further reading
Written by Gregory
20 years building websites and running lead generation, mostly with my own money on the line. Based in Sydney, working with clients worldwide. How I work →