Whether organic or paid, YouTube remains one of the most underrated platforms on the internet. And when one of the smartest paid search experts around calls it “the most mispriced ad inventory on the internet,” you ignore it at your own risk.
What I really love about YouTube is how it gives you the ability to consume media in whatever way is most comfortable for you in a given moment.
- Shorts are for someone swiping vertical video at 11 p.m. with the sound on, half engaged, looking for entertainment. Interesting content captures the mind and helps them discover new creators, so ads have about two seconds to earn the next two.
- In-stream YouTube is a totally different planet. The viewer chose to watch a 15-minute video about an obscure, niche topic that they love or are just getting into. They’re settled in, with intent and attention that’s not present with Shorts. Your ad needs to carry the same gravitas as the content it interrupts.
But most YouTube ads advice is written universally and for brands spending over seven figures a month on ads. This article carries more nuance and is for the more realistic advertiser with a smaller budget.
The Biggest YouTube Setup Mistake … And How To Do It Right
Most brands don’t understand the differences between YouTube formats. They create a Demand Gen campaign, upload one video, throw on a $100/day budget, and let Google control their fate. That, of course, means that Google is going to default toward whatever placement is easiest for it to deliver, not what converts for you.
What we do for our Shopify clients:
- Separate Demand Gen campaigns by placement type: one for Shorts, one for in-stream, one for image surfaces if it makes sense.
- Match creative format to placement. Shorts gets vertical video, hook in the first second, captions baked in. In-stream gets the longer, story-driven cut.
- Don’t judge performance on last-click ROAS alone. Watch for branded search lift and direct traffic volume. YouTube plants seeds that Search harvests weeks later.
- Keep CPMs honest. We’ve seen $5 CPMs on Demand Gen vs. $25 on Meta, but the math only checks out if the placement is right.
Why YouTube Via Demand Gen Offers The Most Control
Demand Gen gives you the ability to target exact audiences. This is different from Performance Max, where you can add any audiences you like, but they’re treated as a signal to guide the system.
Here’s how it works at the most basic level across bid strategies:
- No targeting settings = 100% algorithmic targeting.
- Target ROAS or CPA only = it tries to meet your target.
- Adding audiences = limited campaign exposure.
Adding audiences may have the effect of driving up costs, so you have to be sure that everything aligns with what you’re trying to do on the business end.
An option in Demand Gen that’s very cool and not available on paid social channels like Facebook or Instagram is building a list of people who…
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