You've probably seen that yellow bar or the "Skip Ads" button a thousand times today. It’s annoying when you’re trying to watch a recipe, but it’s pure gold when you’re the one trying to grow a business. Honestly, figuring out how to have ads on YouTube is usually split into two very different camps: people who want to get paid by YouTube, and people who want to pay YouTube to find customers.
Both are tricky. Both have changed a lot since the early days of the "Adpocalypse."
If you’re here because you want to see ads on your own videos and collect a check, you’re looking at the YouTube Partner Program (YPP). If you’re here to run commercials for your brand, you’re diving into the deep end of Google Ads. Let’s stop overcomplicating it. It’s basically just a math game mixed with a little bit of psychological warfare.
The Brutal Reality of the YouTube Partner Program
Most people think they just upload a video, click a button, and the money starts rolling in. Nope.
Google updated the rules because they got tired of low-quality "reused content" and bot farms. To even see the option to turn on ads, you need to hit the 1,000 subscriber mark. You also need 4,000 valid public watch hours in the last 12 months. Or, if you’re a Shorts creator, 10 million valid public Shorts views in the last 90 days.
It's a grind. A long one.
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Once you hit those numbers, you apply for the YPP. This isn't just a formality. Real humans often review these channels to make sure you aren't just stealing clips from The Office or posting "meditation music" that is actually just white noise you generated in five minutes. If you pass, you connect a Google AdSense account. This is the plumbing of the internet. It’s where your tax info goes and where the money actually sits before it hits your bank account.
Why Your CPM is Probably Low
CPM stands for "Cost Per Mille" (cost per thousand views). If you’re making gaming videos for teenagers, your ads might pay $2 per thousand views. Why? Because teenagers don't have credit cards. But if you’re making videos about high-end real estate or B2B software? You might see $30 or $50 CPMs.
Advertisers bid more to reach people who have money to spend. It's that simple. If you want to know how to have ads on YouTube that actually pay the bills, you have to talk about things that advertisers find valuable. Finance, tech, and health are the heavy hitters. Prank channels are the bottom feeders.
Running Your Own Ads: The Google Ads Side
Now, let's flip the script. You have a product. You want it on YouTube.
You don't go to YouTube.com to do this; you go to Google Ads. Because Google owns YouTube, the targeting is eerily specific. You can show your ad specifically to people who have searched for "best hiking boots" on Google Search in the last 24 hours. That’s the "Intent" advantage.
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The Different Flavors of YouTube Ads
Not all ads are created equal. You've got:
- Skippable In-Stream Ads: These are the classics. They play before, during, or after videos. The kicker? You only pay if the viewer watches at least 30 seconds or interacts with the ad. If they skip at 6 seconds, you just got a free 5-second brand impression.
- Non-Skippable In-Stream: These are 15 seconds long. People hate them. But they work for brand awareness because the viewer is forced to sit through it.
- Bumper Ads: These are 6 seconds. You can't skip them. Think of these like a digital billboard. You can't explain a whole product, but you can stick a logo and a catchy phrase in someone's brain.
- In-Feed Video Ads: These look like regular video thumbnails in the search results or on the "watch next" sidebar. These are great for building a channel because the viewer has to actually choose to click them.
How to Have Ads on YouTube Without Blowing Your Budget
Setting up the campaign is the easy part. Not losing $500 in three hours is the hard part.
First, you need a video. Please, for the love of everything, don't just use a generic corporate video. The first three seconds are everything. If you don't hook them, they're gone. Mention the problem you solve immediately. "Are you tired of your coffee getting cold?" is better than "Welcome to our company's annual vision statement."
When you set your targeting, avoid "Interest" targeting at first. It's too broad. Use "Custom Segments." This allows you to target people based on their search activity. If I’m selling a course on how to fix vintage cars, I’m going to target people who searched for "1967 Mustang carburetor repair" on Google. That is a "hot" lead.
The Placement Trap
Google loves to put your ads on "Google Video Partners." This means your ad might show up on some random mobile game or a sketchy website instead of actual YouTube. Usually, you want to uncheck this box if you want the best engagement. Keep your ads on YouTube.
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Also, watch your "Placements" list like a hawk. You might find that 50% of your budget is being spent on kids' channels because toddlers are clicking everything while watching Cocomelon. Unless you're selling toys, that’s burned money. Exclude those channels immediately.
The Technical Setup: Step-by-Step Sorta
- Link your accounts. Go to your YouTube channel settings and link it to your Google Ads account. This lets you see "earned views"—people who saw your ad and then went on to watch more of your organic videos.
- Upload the ad video to YouTube. Set it as "Unlisted" if you don't want it appearing on your main channel feed.
- Create a New Campaign. Choose "Video" as the campaign type.
- Pick your Goal. "Leads" or "Website Traffic" are usually what businesses want. If you just want views, choose "Brand Awareness."
- Set your Bidding. Start with "Target CPV" (Cost Per View). Usually, a few cents per view is enough to start getting data.
Why Quality Scores and Retention Matter
Google isn't just looking at your money. They care about user experience. If your ad has a high "skip rate," Google will eventually stop showing it or charge you way more. They want ads that people actually find relevant.
Check your "Video Analytics" inside Google Ads. If everyone is skipping at the 4-second mark, your hook is bad. If they stay until the 20-second mark but don't click, your "Call to Action" is weak. You have to be a bit of a scientist here. Change one thing at a time. Change the headline. Then change the thumbnail. Then change the first five seconds of the video.
Common Mistakes That Kill Campaigns
People get lazy with locations. If you're a local plumber in Chicago, don't let your ads run across the entire United States. It sounds obvious, but you'd be surprised how many people leave the default settings on.
Another big one: The Landing Page. You can have the best ad in the world, but if the link takes people to a cluttered homepage that takes 10 seconds to load, they will bounce. Send them to a specific page that matches the ad. If the ad is about "Blue Suede Shoes," the page should show blue suede shoes. Not a generic shoe category.
Actionable Steps to Get Started Right Now
If you want to get your ads live and actually see a return, stop overthinking the production value. A phone camera and good lighting often perform better than a $10,000 polished commercial because it feels more "native" to the platform.
- Audit your channel: If you're going for the Partner Program, check your "Earn" tab in YouTube Studio to see how close you are. Look at your top-performing videos and make more of that.
- Research your keywords: Use a tool like Google Keyword Planner or just the YouTube search bar. See what people are actually typing in.
- Set a "test" budget: Spend $5 or $10 a day for a week. Don't touch it. Let the algorithm learn who likes your stuff.
- Check your "Where ads showed" report: This is the most important report in Google Ads. It tells you exactly which channels took your money. If you see junk, exclude it.
- Focus on the hook: Spend 80% of your creative time on the first 5 seconds of your video. That is the "make or break" zone for YouTube advertising.
Everything about how to have ads on YouTube boils down to relevance. Whether you're the creator or the advertiser, if you give the viewer what they actually want to see, the platform will reward you. If you try to trick the system or spam people, you'll just end up with an empty wallet and zero views. Keep it real, keep it targeted, and keep an eye on your analytics every single morning.