Top 3 YouTube Ad Formats to Engage Viewers in 2025

YouTube has grown to be an indispensable platform for brands looking to connect with their target audience. With its vast global reach and diverse content, it provides businesses with a unique opportunity to engage consumers in a highly interactive and impactful way. As the second most visited website globally, YouTube has become a critical tool for digital marketing, enabling brands to tap into an audience that spans all demographics and interests.

To capitalise on YouTube’s potential, understanding the three key ad formats – in-stream, in-feed, and Shorts – is essential. Each format is designed to help brands deliver their message in a way that aligns with the platform’s content consumption habits. Whether it’s a skippable ad before a video, a sponsored post within the feed, or a short-form video on the Shorts platform, these formats provide varied opportunities to capture attention, engage users, and drive conversions.

In-stream ads, for example, are highly effective in reaching users during moments of video consumption, while in-feed ads can be seamlessly integrated into users’ browsing experience. Shorts, which have gained significant popularity in recent years, allow brands to deliver quick, impactful messages in a vertical video format – ideal for grabbing attention in today’s fast-paced digital landscape.

By leveraging these ad formats, brands can create campaigns that do more than just sell – they can entertain, educate, and inspire their audience, building lasting connections without wasting marketing budgets. However, to fully unlock their potential, brands must consider how these formats work together to create a cohesive and impactful strategy.

To understand why these formats matter so much, we must first consider how YouTube has evolved into a cornerstone of modern advertising. With its unique ability to blend entertainment and marketing, YouTube continues to be at the forefront of innovative advertising solutions that engage users across a variety of devices and contexts. As we dive deeper into YouTube’s advertising landscape, it’s clear that businesses who embrace these formats will be better positioned to drive meaningful results in 2025 and beyond.

To fully understand YouTube’s impact, it’s important to look at the ecosystem that sustains the platform, comprising viewers, creators, and advertisers.

The viewer: Viewers are at the heart of YouTube’s success. Over time, their viewing habits have shifted from traditional television to YouTube, and now, with the rise of streaming services, they are increasingly consuming content via TV screens. This evolution reflects the growing preference for on-demand video content, which has made YouTube a dominant player in the digital entertainment space.

The creator: Creators play a pivotal role in the platform’s growth. YouTube allows individuals to produce and share content independently, giving rise to a new era of content creators who do not need large production teams or corporate backing. These creators are the driving force behind the platform’s diverse content offerings, drawing in viewers and fostering a community around their channels.

The advertiser: Advertisers are a crucial component of the YouTube ecosystem. They have the unique opportunity to reach viewers through creators or by producing their own engaging content on a platform that is designed for video consumption. The ability to target specific demographics with tailored video ads has made YouTube an attractive option for advertisers looking to reach a broad, yet highly engaged audience.

This interconnected ecosystem highlights the importance of each group in shaping YouTube’s ongoing evolution. Viewers consume content, creators generate it, and advertisers capitalise on the platform’s reach to promote their products. Together, they create a dynamic environment that makes YouTube an essential part of the digital landscape.

 

YouTube Advertising: 3 Key Formats Your Brand Needs in 2025

As YouTube continues to evolve, many advertisers are still learning the best ways to navigate this powerful platform. With the right strategy, YouTube has the potential to entertain, educate, and inspire your audience in 2025.

Here’s how you can make the most of YouTube’s three key ad formats.

1. In-Stream Ads
   The way people consume video content has undergone significant shifts. While viewers once moved from traditional TV to desktop YouTube, many are now streaming YouTube on TV screens again. According to eMarketer, YouTube usage on TV screens has increased by 63%, while usage on mobile devices has been on the decline. This shift, occurring over the past five years, has made TV a critical space for advertisers to target their audiences.

In recent years, traditional TV usage has dropped by 40 million households, with many now relying on connected TVs. These devices allow apps like Google and YouTube to stream content directly to screens, offering better targeting and more control than traditional TV providers. Through platforms like Google TV, advertisers can segment campaigns specifically for TV screens, while integrating seamlessly with other Google ad campaigns.

In-stream ads are ideal for educating viewers on TV, helping your brand connect with the right audience at scale.

2. In-Feed Ads
   In-feed ads offer an incredible opportunity to capture user attention. These ads take advantage of human behaviour, tapping into the moments when users are scrolling through their feeds, looking for content that catches their eye.

In-feed ads can appear in three key places on YouTube: the Home feed, the Watch Next feed, and the Search feed. Each of these placements elicits different user behaviours, helping your ad to reach a variety of viewers in different contexts.

Unlike other platforms where users may not know what to expect next, YouTube users always know they’re about to watch a video, which makes the experience more engaging. This familiarity significantly boosts the effectiveness of in-feed ads for many brands.

A common question is about attribution: why don’t conversions appear in the user interface after someone watches an ad? The key lies in the non-linear nature of the purchase cycle. Viewers go through stages of exploration, evaluation, and experience before taking action. In-feed ads are perfect for inspiring users and introducing them to your brand, nudging them further along their purchase journey.

3. Shorts Ads
   YouTube Shorts are proving to be an essential format for many brands, especially those with a presence on Instagram and Facebook. Shorts offer a personal and highly engaging ad format that is built to capture attention quickly, respect the viewer’s time, and drive them to take action.

What makes Shorts so valuable is their versatility. A single vertical ad can seamlessly run across YouTube, TikTok, Instagram, and Facebook. This allows you to test how the ad performs on various platforms, ensuring your content is optimised for each.

Additionally, YouTube prioritises Shorts within its app, placing them above the fold. This prominent placement makes Shorts one of the first things users see, reflecting YouTube’s commitment to integrating them into the platform’s experience. Whether users are transitioning from a long-form video or seeking short, engaging content, YouTube sees Shorts as an integral part of the viewing experience.

In comparison to regular videos, Shorts are more geared towards entertainment and engagement. They allow brands to connect with a highly engaged audience that’s looking for quick, enjoyable content.

By leveraging these three YouTube ad formats—In-stream, In-feed, and Shorts—brands can successfully engage with viewers, drive conversions, and enhance their advertising strategies in 2025.

 

Moving forward and building content on YouTube

Creating content on YouTube doesn’t have to be overly complicated. With a simple strategy, you can begin engaging your audience and building your brand effectively.

Set Your Budget
Start by setting a modest budget. You don’t need to go all in right away; small amounts like $5, $10, or $20 per day across three campaigns can go a long way. Focus on these key areas:

• Shorts (9×16) and long-form (16×9): Use In-stream ads with Cost Per View (CPV).
• TV: Opt for Cost Per Mille (CPM) for TV-based campaigns.
• In-feed: You can experiment with either CPM or CPV.

This approach lets you test different formats while keeping costs manageable.

Plan Your Content
When planning your content, it’s essential to create multiple variations of your videos. This could include different intros, outros, and voice types, ensuring you have flexibility in how your content can be used.

More importantly, think about how your videos can transition seamlessly across different formats. A 2-3 minute video, for example, should flow naturally into an in-stream ad format. This video should then be repurposed into a 60-second version for in-feed ads. Finally, you can condense that 60-second video into a dynamic, action-packed short to capture attention quickly.

Each Format Serves a Purpose
It’s important to keep in mind that each ad format has a specific role:

• In-stream ads educate your viewers, providing valuable information.
• In-feed ads inspire, helping your brand capture interest and spark curiosity.
• Shorts entertain, delivering quick and engaging content that resonates with users.

By implementing these straightforward strategies, you can significantly improve your brand’s visibility and engagement on YouTube.