In-Stream vs In-Display YouTube Ads in 2017

instrinstream vs display youtube ads

In-Stream vs In-Display YouTube Ads in 2017

So… how do you choose between In-Stream vs In-Display YouTube Ads in 2017?

This article will explain the difference between In-Stream vs In-Display YouTube Ads today and how to use them.

Using YouTube ads to market yourself, products and services is not only vital in 2017 but critical to businesses in certain industries. By the time you finish this article, you’ll understand how to place optimized YouTube ads and when.

An optimized YouTube marketing campaign includes the following components:

  1. Strong headline
  2. Identifies the problem
  3. A captivating story (that educates and entertains)
  4. A resolution to the problem
  5. Call to action


After your video has been edited, smart cards, annotations are required that link to your website and/or landing page(s). Your Channel is like your beach front property, your second home, that attracts guests from near and far to spend time with you and enjoy your presence.


When it come to placing an ad, things change a bit. People typically find ads annoying and intrusive yet there are ways to get your video seen, more on that soon.


Let’s continue with your ad. As we eluded, there are two types of ads, In-Display and In-Stream . In-Display allows for YouTube Re-marketing and keyword search.


While In-Stream ads play before the video and appears on the side bar menu or at the top of the YouTube search.


When you want to use In-Stream ads you can select specific videos you’d like to play on, we recommend choosing a competitor’s video (review their keywords).


In-Stream ads at times leads to higher conversions because it appears while the main video is in progress or immediately before it.


In-Display ads require users to manually choose to watch the ad. So the thumbnail you use must be compelling so they’re more likely to watch your ad(s).


Be mindful that there are different auction dynamics between In-Stream vs In-Display ads. The same bid for In-Stream will not perform, or cost, the same as the bid for In-Display. One typically outperforms the other.


instream vs indisplay youtube ads 2017


How to setup your YouTube ad:

  1. Log in to your YouTube channel by using the Sign In link.
  2. Go to YouTube Ads and click the Get Started with AdWords for Video button.
  3. Choose your time zone and your preferred currency, and then click the Continue button.
  4. Enter a name for your campaign in the Campaign Name field.
  5. On the confirmation page that appears, click the Sign In to Your AdWords Account link.
  6. Enter the username and password for your YouTube account again.
  7. Now enter the Google AdWords for Video.
  8. Enter the amount of your daily budget in the Budget field. It’s the amount you’re willing to spend per day on your ads. You can increase or decrease the budget at any time. Start with a small amount, such as $5, and increase it gradually as you start seeing the results you want.
  9. Click the Select Video button.
  10. Enter the name of your YouTube channel.
  11. YouTube shows you a list of your videos.
  12. Select the video that you want to use as an ad. Not that your YouTube ad may be the first thing that people see about your company, so use a video that’s short, catchy, and to the point.
  13. Write your ad text.
  14. This text appears next to the video thumbnail in your ads. You can write one headline with a maximum length of 25 characters, and you can write two lines of description text with 35 characters apiece.
  15. Attach a compelling title that informs viewers of why they will benefit from watching this video.
  16. Choose the thumbnail you want to use.
  17. Enter your website address in the Display URL field.
  18. If you want to direct viewers to a particular page other than your website’s home page, enter a web address in the Destination URL field.
  19. Click the Save and Continue button to create your ad.
  20. Now you need to tell YouTube where to show your ad. This target selection is a targeting group.
  21. Create a new targeting group by first giving the target group a name in the Name field.
  22. Choose a maximum cost per view (CPV) amount.This amount is the maximum you’re willing to pay every time a viewer watches your video. A decent amount to start depends on your niche and the average bid price. You can always adjust the amount later.
  23. For In-Stream and In-Display ads, you pay only if people click a Promoted Video ad, not for the ad simply showing up. In the case of In-Stream ads, you’re charged when viewers watch at least 30 seconds of your video ad. Remember with In-Display ads, you pay only when someone actively chooses to view your ad. This method makes YouTube ads highly cost-effective.
  24. Enter three to four of your top keywords in the Search for Targeting Suggestions field, and click the Get Targeting Suggestions button.
  25. Click the Expand link next to each suggestion and click the Add button next to each keyword or placement you want to add.
  26. If you want to narrow your targets further, click the Add YouTube Search Keywords and Add Targets button in the sidebar on the right to add additional keywords and placements.
  27. Click the Save and Enable Targeting button to start your campaign.
  28. If this is the first time you buy ads on Google or YouTube, enter your billing information.
  29. Monitor and Analyze your campaign.


“Alright, OSA…. I’ve got it” you say “and how do I get traction and monetize my ads?” When you want people to take time to watch your ad and then take action, the “trick” is to ensure the ad is aligned with the message the main video addresses.


What we mean is, if you’re watching a video entitled “How to earn money online” and your ad discusses donating to a foundation, the messages aren’t congruent.


Nothing makes us queasier than when we watch an Abraham Hicks video with multiple ads for heart failure drugs or something similar, it doesn’t makes sense!  It really just pisses off the viewer.


A better placement for the heart failure medication would be on a video for “how to avoid heart failure” get it? We’re sure you do.


Next, your ad must state the problem within the first 3-6 seconds. Getting to the point is critical for your conversion rates. You have 8-9 seconds before the viewer will decide to stay or skip your ad.

In-Stream vs In-Display YouTube Ads in 2017

Here’s the Flow:

Bold statement: “Hey, are your online sales low or non-existent?” You grab their attention with a problem you can solve. The keywords to our target audience: “sales, low sales, online sales, how to improve online sales”


Captivating story: “We’re Zane and Grant from the Online Sales Authority, and we’ve helped many just like you increase their online sales with ease. It hasn’t always been that way, however, we struggled to make sales online when we first got started in 2015 and spent tens of thousands of dollars learning, but you don’t have too….


Resolution: We’ll show you what we’ve learned for free exactly what continues to give us and the affiliates and small business owners we help serious momentum!”


Call to Action: “Click the link to download your free video series that will show you step-by-step how to ensure your online sales soar! Be sure to click the link below now to get instant access. Chat soon and Be the Authority!


See how this ad flows? Tailor yours in a similar manner that best suits your needs. Be fun, bold and exciting. The more enthusiasm you can naturally compose, the more attractive you’ll be to your audience. So don’t hold back!


Additional Guidelines:

  • Avoid tricking your viewers
  • Avoid music videos
  • Avoid gaming videos
  • Use (brackets) around your keywords in YouTube’s keyword area


Now that you’ve selected a type of video ad, In-Stream vs In-Display, and have your keywords selected (and optimized by using the Google KeywordPlanner), you’re ready to pick a video to marketing within or to follow and now you need to monitor your conversion rates.


How do you know if your ad is good? The first hint that you’ve landed in the ballpark your ad will have 100 clicks within a day or 5-7 day period, you’ve made at least 2-3 sales or have around 20+ subscribers, then you can tweak ad.


Change one parameter at a time. Will you change the keywords? The landing page? You can indicate the average view time within the dashboard of your YouTube channel. From there, monitor the average watch time and the CTR (click through rate).


If your ad is 2 mins long and the average view time is 10 seconds, your introduction requires more focus, or more entertainment.


Or if the average time is 1.45 mins, and you have only 1 or two opt-ins, your call to action is weak or the viewer isn’t certain you can solve their problem. In this scenario you’ll have to explain your qualifications and either show examples or quick screen shots of your previous successes.


Recently a potential client emailed us and said “Hey, I’d like to use your done-for-you services on a week-to-week basis”. We provided a quote, which wasn’t in his current budget, so we didn’t move forward, however think about this request.


When you place an ad on YouTube, or on any other platform, you must realize your intention. You’re working towards a goal. Ads are an experiment.


You have a solid framework outlined within this article and by using it you will get very close to your goal with a bit of analysis and testing.


That said, receiving an ROI can take time since there are many factors at play. Whether it’s the time of the day it’s seen, who’s seeing it and which buying cycle viewers are they in. Do you have solid email followups or a retargeting system in place for backend sales?


Don’t get frustrated with your ads. Ads will produce results at the rate your able to analyze and execute new changes. -OSA


The conversion cost for new subscribers and buyers could be as low as .10 cents up to $250+ dollars. Your goal is continually test components of your ad so that each campaign yields a lower EPC (earnings per click).


To summarize, excellent YouTube ads align with the main video that the viewer chose to watch. It will solve an issue they have in an exciting and inspired way and remind them how to contact you. You’ll find these videos based on the keywords you intend to use throughout your video and by using YouTube’s keyword search tool.


Bookmark this article and after you’ve placed your next YouTube ad, let us know how it went.


Thank you for reading this article. We hope it guides you well on your journey towards becoming an Online Sales Authority.


Have any questions? Contact us here.

Author: Zane

Zane enjoys learning, helping business owners improve their online sales and analyzing and optimizing sales data. When not conquering the world with Grant, Zane and his partner love observing metaphysics at work, cross country running and swimming.