When you’re sitting down to watch your favourite show on TV, you know what to advertising format to expect. Prepare for 3-4 commercial breaks of 30 second spots (more like 10 breaks if it’s American Idol) that you can’t fast forward through, unless of course you thought ahead and PVRed. On YouTube, it’s a different story. Click on a video and you don’t know what to expect.
So it shouldn’t come as too much of a surprise that each different ad format earns revenue differently. For example revenue for a banner ad will usually be applied when someone actually clicks the banner, whereas revenue for an in-stream ad will be applied after the viewer has watched 30 seconds of the ad or to its completion. When revenue is applied to a video view, we call this a monetized view.
Direct Ads: usually these are campaigns, which are put in place by a sales team and last a month or two on specific partnered channels, which would substantially increase a partnered channels CPM during this time.
Display Ads: 300×250 ad banners run across all areas of YouTube with the exception of the homepage. These are the ads that appear to the right of your video and above your video suggestion list.
Overlay In-Video Ads: these are the transparent overlay ads that appear on the lower portion of your video, sometimes appearing at the start and sometimes appearing during your video.
TrueView In-Stream Ads: they are skippable video ads inserted before, during or after your video.
TrueView In-Display Ads: these appear alongside other YouTube videos, or on websites that match your target audience.
Non-Skippable In-Stream Ads: these are video ads that can come before, during or after your video, in a the post-roll slot, and don’t give viewers the option to skip.
If you enable all of these ad formats, the system will choose the best one for your channel, (i.e. the most expensive one that is available out of all the advertisers that are looking to place advertising on your content and within your genre). Note that if viewer retention and/or monetized views decrease, there is the option to disable non-skippable ads, which sometimes turn audiences off.