YouTube Ad Types, Costs and Billing: How to Create Ads

YouTube ads are video ads created in Google Ads, and the moment you are charged depends on the format. For skippable in-stream ads, cost per view (CPV) is charged when a viewer watches 30 seconds (or the full ad if it is shorter than 30 seconds) or interacts with the video. Bumper ads and non-skippable in-stream ads use target CPM bidding, so you are charged by impressions. There is no price list by format. The advertiser sets a bid strategy that fits the goal and a budget. This article is current as of October 3, 2026.

Six YouTube ad types

The YouTube video ad formats Help page covers skippable in-stream, non-skippable in-stream, in-feed, bumper, Shorts and masthead. In-stream ads play before, after or during other videos. In-feed ads appear as a thumbnail with text in search results, related videos and the home feed.

Format	How it appears	Length guideline
Skippable in-stream	Viewers can skip after 5 seconds	No maximum length, under 3 minutes recommended
Non-skippable in-stream	Viewers cannot skip	15 to 60 seconds (varies by campaign subtype)
In-feed	Shown as a thumbnail and text, plays only when clicked	No maximum length
Bumper	Short ad that cannot be skipped	5 to 6 seconds
Shorts	Appears in a format similar to the Shorts viewing experience	Under 60 seconds recommended
Masthead	Autoplays without sound at the top of the YouTube home feed	No maximum length, 10 seconds or more recommended

Masthead is sold by reservation only, so advertisers who start with bidding choose from the other five.

YouTube ad costs depend on CPV and CPM

YouTube ads use two cost units. CPV is the cost per view, charged when a viewer watches past a set threshold or interacts with the ad. CPM is the cost per 1,000 impressions. The format and the bidding method decide which one applies.

Format	When you are charged
Skippable in-stream	CPV bidding: when a viewer watches to the 30-second mark (the full ad if under 30 seconds) or interacts. With target CPM or target CPA bidding, you are charged by impressions
In-feed	When a viewer clicks the thumbnail to watch, or watches an autoplay video for 10 seconds or more
Shorts	CPV bidding: when a viewer watches 10 seconds or the full ad, or clicks the call-to-action. With target CPM bidding, you are charged by impressions
Non-skippable in-stream, bumper	Target CPM bidding, so you are charged by impressions
Masthead	Reservation-based CPM or cost per hour (CPH)

So a skippable in-stream ad that is skipped after 5 seconds does not count as a view under CPV bidding, and bumper and non-skippable in-stream ads do not record TrueView views. If the views column is empty in campaigns of these two formats, nothing is wrong.

The views in an ad report and the public view count of a video are different numbers. For the change in how public view counts are calculated, see our article on YouTube's view count change.

How to set YouTube ad rates and budget

Google's Help pages have no price list or average rate by YouTube ad format. A bid happens every time an ad slot opens, so even the same format has a different rate depending on targeting and competition. Choose the bidding method that fits your goal, then check the rate in actual results. The bid strategy Help page recommends the following bids by goal.

Goal	Recommended bid
Video views and interactions	CPV, target CPV
Impressions and awareness	Target impression share, CPM, target CPM, vCPM (cost per 1,000 viewable impressions)
Clicks	Maximize clicks, target CPC, manual CPC
Conversions	Target CPA, target ROAS, maximize conversions, maximize conversion value

You set the budget as a daily budget. According to the Google Ads spending limits Help page, the most you can be charged in one day is 2 times your average daily budget, and the monthly maximum is your average daily budget multiplied by 30.4 days. If your daily budget is 10,000 KRW, the daily maximum is 20,000 KRW and the monthly maximum is 304,000 KRW. A day of spending above the budget is normal as long as the monthly total stays within the monthly limit.

Video ads aimed at conversions used to be created as video action campaigns. According to the notice at the top of that Help page, all video action campaigns have been upgraded to Demand Gen campaigns. Check the Demand Gen Help pages for detailed settings of conversion-focused video ads.

How to create a YouTube ad step by step

The YouTube guide to creating a video ad campaign explains the steps for building a campaign in a Google Ads account. Below, those steps are grouped into five.

1. Choose a goal and a campaign subtype. Sales, leads and website traffic require conversion tracking in the account. YouTube reach, views and engagement can be chosen without it. Under the reach goal, subtypes such as video views, video reach and ad sequence appear.
2. Set the budget and bidding. Choose a total budget or a daily budget, then pick the bid that fits your goal from CPV, CPM, vCPM, target CPA and target ROAS.
3. Set campaign targeting. Choose the network, language, location, content to exclude and devices.
4. Create an ad group. Narrow your audience by demographics, audiences, keywords, topics and placements.
5. Create the ad. The video must be uploaded to YouTube first. If you have no video, you can make one with an Asset Library template.

The official Help pages give no success benchmarks, so after publishing, first check in the Google Ads campaign table whether numbers are building up in the impressions and cost columns. For a skippable in-stream CPV campaign, views and average CPV should rise together. For bumper or non-skippable in-stream campaigns, read impressions and CPM instead of views. If the numbers are too low in the first few days, review your bids and targeting range.

YouTube ad strategy by format at a glance

Each format appears differently and is charged at a different moment, so the creative strategy differs too. The directions below are drawn from the facts in the tables above. They are not figures that guarantee results.

• Skippable in-stream: viewers can skip after 5 seconds, so put the brand name and a hook in the first 5 seconds. That way the brand is seen even if the ad is skipped. Under CPV bidding, a skip at 5 seconds does not count as a view.
• Non-skippable in-stream: it plays to the end and you are charged by impressions. Narrow the message to one idea and put the key point up front.
• Bumper: it ends within 5 to 6 seconds, so carry only one message.
• In-feed: it plays only when the thumbnail and text are clicked. Show the reason to watch in the thumbnail and title.
• Shorts: it appears in a format similar to the Shorts viewing experience. Build it for a short pace under 60 seconds.
• Masthead: it autoplays without sound, so use visuals and captions that make sense without audio.

Detailed strategies and cases by format are covered separately in our series.

YouTube ad VAT and tax invoices in Korea

Advertisers in Korea pay 10% VAT on ad spend. According to the Google Ads tax Help page, advertisers who contract with Google Korea LLC are charged 10% on all transactions, including credit and debit card payments. Business advertisers who register a valid business registration number receive an electronic VAT invoice for the previous month's usage before the 10th of each month. Individual advertisers do not receive one. Add VAT to your monthly ad plan so it matches the amount you actually pay.

Frequently asked questions

Where do I sign up for YouTube ads

You create and run a video campaign in a Google Ads account. According to the YouTube Help page, the video must be uploaded to YouTube, and you need Editor, Manager or Owner permission in YouTube Studio on the channel linked to your ad account.

Can I not create ads without channel permission

The Help page says a house channel dedicated to Google Ads may be created automatically if you lack permission. Some features are limited, though, so if you run a channel, it is better to link that channel.

Can I start masthead ads with a small budget

Masthead is offered only by reservation, not by bidding, and its cost is calculated by CPM or cost per hour (CPH). Advertisers who start with small bids choose from in-stream, in-feed, bumper and Shorts.

There is one thing to do today. Write your ad goal in one sentence, pick the matching method from the bid table, then calculate your daily budget in Google Ads with 10% VAT added.

Sources: YouTube Help Video ad formats, Create a video ad campaign. Google Ads Help Ad view metrics, Bid strategies, Spending limits, Video action campaigns, Tax information. Current as of October 3, 2026. Images are generated illustrations for explanation and are not actual ad screens.