In this comprehensive guide to YouTube ads, you will discover:

The Opportunity of YouTube Ads for 2021
The Risks of not diversifying your traffic in 2021
Exactly how to set up, run, test and scale your YouTube Ads, step-by-step

In this comprehensive guide to YouTube ads, you will discover:

  • The Opportunity of YouTube Ads for 2021
  • The Risks of not diversifying your traffic in 2021
  • Exactly how to set up, run, test and scale your YouTube Ads, step-by-step

I would wager that you have seen this exact ad more than two times.

Why do large companies such as spend millions of dollars on YouTube ads like this?

That is why YouTube ads totally work.

YouTube ads work for big companies that are backed by venture capital, like

Smaller businesses are using YouTube ads to attract new customers, and it is happening at a massive scale.

Do you want to utilize YouTube ads to grow your ecommerce business?

You do not need a large budget to get results. Simple, low-budget, YouTube ads are very good for selling ecommerce products.

I am posting a video for Bondic, a diy plastic welding product.
YouTube ad spy tool dashboard screenshot of bondic youtube ad adspend performance over time

Check it out: they’ve spent over $197k (estimated) on this one YouTube ad:

Then you can take this simple solar battery ecommerce product from 4patriots.
YouTube ad spy tool dashboard screenshot of 4patriots solar battery youtube ad adspend performance over time

How much money have they spent on this very simple video ad for iPhone?

Nearly $1.1 Million USD (estimated).

Do you sell products that contain information on the internet?

YouTube advertising is wonderful for selling information products.

Do you have evidence? I think you have seen ads from big budget info product publishers like Mindvalley.
youtube ad performance screenshot

over $982k (estimated) spent on this one YouTube ad:

Many one-man show “infopreneurs” that sell how-to information products as affiliates are spending six figures and making many multiples of that amount on simple, low budget Youtube ads that are made with just an iPhone and some cheap video content, like this one.

You don’t need to have a huge production budget to make winning YouTube ads for information products

So, what do you think your excuse is?

If you are not already using YouTube ads to grow your business, you should.

So why not?

  • Maybe you do not know how to get started.
  • You have tried to accomplish the goals you have always wanted, but have given up because you were not immediately able to get the results you were looking for.

If it is true, then this free guide to YouTube ads will change that.

It is now 2020 and YouTube is still massively under-utilized. The sea surface contains the most business traffic.

So, ask yourself.

How many of your competitors are
using Facebook


How many are effectively using
YouTube ads?

In the past 12 months, YouTube has made a big push to make the platform as high-performing
for direct response marketing as possible.

That means that it has never been easier to become successful with YouTube ads.

And with more and more businesses every day shifting ad spend to YouTube to avoid being
dependent on Facebook…

It is probable that it will never get any cheaper.

You could cash in on YouTube as a traffic source before your competitors even know that what you have said is happening.

  • So if Facebook ads are your main (or only) source of new customers…
  • And if you are sick of rising ad costs and account shutdowns…

Your business needs to expand on YouTube.

We are going to walk you through this step-by-step guide, showing you exactly how to do that.

In this free 4-part YouTube Ad Training Series, I am going to cover the nitty gritty.

  • WHY – Why YouTube Ads are your business’ biggest scaling opportunity for 2020 (and beyond)
  • HOW – Our step-by-step guide to set up, launch and scale YouTube ads based on what we’ve learned from managing over $1 Million USD/month in YouTube adspend.

But first, we need to twist the knife a bit to emphasize what’s at stake if you don’t take action to diversify your traffic right now…

A few cautions remain. Diversify or you may die.

I think this is a very interesting thought experiment.

If you are banned from advertising on Facebook.

What would you do to improve your business?

Do you have another proven method for acquiring customers?

What would happen if the business cash flow collapses, and you stop it?

Diversify or Die: YouTube ad guide for 2020 youtube ad step-by-step guide

YouTube Ads Guide 2020 - Facebook Adspend upto 2018 You can find it at

Big fish have been growing ever since.

If it is becoming more and more costly to advertise on Facebook, you are not alone.

Big advertisers are investing more and more money in the digital channels that they are able to figure out & make profitable.

In response, small advertisers are becoming more costly to compete with.

This is not something new. That has been happening continuously since the beginning of mass advertising.

At that time, the average person saw 500 advertisements per day.

Now? There are over 5000 ads per day.

TV advertising has grown over the past fifty years, and is now very common in print media.

Now, two decades later, television had been eclipsed by cable television.

1950s pepsi ad - for youtube ad step-by-step guide
youtube ad guide 2020 - global marketing prediciions 2019

In the past, with the emergence of the internet, as people switched from television to digital, advertising money became more important.

Between 2000 and 2017, the annual spending on television advertising increased from $100 billion to $180 billion.

In the same time period, the amount of media advertising spent in digital media went from virtually nonexistent to surpassing TV advertising spend at a staggering $209 billion per year.

Predictions are that by end of 2023, digital spend will more than double, to $517 billion per year.

So, this is the problem that your business will have. This is simple.

As more advertisers compete for that same eyeball, the price of advertising will skyrocket.

The dilemma concerning Facebook’s advertising inventory is called the ‘peak Facebook’.

You are not alone in using Facebook, which is currently the most widely used advertising platform for both B2C and B2B businesses. You will see that increase first hand.

Here is a closer look at why all of this is happening.

As an example, we will use Facebook’s us market to show you what is important.

facebook user count decrease 2018

A limited supply of goods and a large demand for goods = rising advertising costs.

Facebook users will tolerate many ads in their newsfeed, but they will do so soon because they will decrease the quality of their experience and they will stop using the platform.

Here is the problem: Although Facebook’s user count is still growing globally (to 2.2 Billion users as of Q4 2018), in many key markets – like the US – users are actually leaving the platform.

Starting in 2017, Facebook has actually seen US user count decrease:


Facebook’s advertising budget continues to grow year after year.

facebook advertising revenue 2010 to 2019

As a result, in 2017 Facebook reached “Peak Ad Load” on their prime ad real estate: the Facebook Newsfeed, leading to dramatic increases in the price of advertising.

peak facebook nyt

Luckily for Facebook, their Instagram platform allowed them to have another ad placement to increase their ad volume.

Everything worked fine for a short time, even as the prices for advertisements increased.

Instagram newsfeeds have reached their peak of ad load in 2019.

instagram peak ad load 2019 motley fool

As Facebook scrambles to acquire new inventory, one thing is clear:

  • Limited supply (limited number of users & placements to show ads)
  • Rising demand (rising ad dollars).

What is the result? Facebook’s cost will continue to rise.

If you’re completely dependent on Facebook for your customer acquisition,
make no mistake:

Obtaining a customer costs money and will get worse.

What if you continue to do what you are doing without altering your course?

Your profit margins are going to continue to shrink, which is going to ruin your business.

Probably you already know about this.

Youtube advertisements.

Why are youtube advertisements?

How are YouTube ads so powerful and promising?

This is the first thing I want to emphasize, and that is very important.


YouTube isn’t plagued by any of the ad inventory problems that plague Facebook’s newsfeed.


Over 600 hours of video content are uploaded to YouTube every minute – and that rate is only increasing, check it out:

hours of youtube content uploaded every minute - Over and over an hour of Youtube content is uploaded every minute.

Each minute that passes, you will see more places to put your advertisements on YouTube.

That is only a starter. Let us discuss various ways that you can ensure that your ads are shown to the best possible audience at the times when they are most receptive to your messages.


The site YouTube is owned by Google. You are able to use the thousands of data points of the site to target users by their web browsing behavior across devices.

  • What they’re searching for right now or historically (via Keyword / Custom Intent targeting)
  • What they’re viewing right now (put ads in front of your competitor’s videos or channels via Placement targeting)
  • Products or services they are actively considering buying right now (via In-Market audiences)
  • Even the websites they visit (target users who visit your competitor’s websites via Custom Intent / Custom Affinity targeting).

These are all different types of targeting options that you probably already know about, such as age, gender, location, browser, device, and similar audiences (which are basically Google’s equivalent to Facebook’s lookalike audiences).


YouTube is the #2 most visited website on the internet (after Google),  #2 social network
(after Facebook), and #2 search engine (also after Google), with:

  • 1.3 billion active users
  • Over 1 billion hours of content watched each day
  • Over 600 hours of content uploaded each minute
  • 90% of U.S. internet users aged 18 to 44 years are active Youtube users
  • YouTube accounts for 37% of ALL mobile internet traffic

Plus: 90% of YouTube users say they discover new products & services on the platform.
These users are buyers – not just passive viewers.

The scaling opportunities are enormous.

Do you want to understand the growth and scale of YouTube ads? We hear John Belcher and Bryan Garvin, our advertising heroes, talk about how Bryan leveraged $120 million in YouTube adsspend in just one year to grow Purple Mattress from zero to over $405 million.


Here’s a great article about YouTube advertising.

You pay for every impression or every time your ad appears on Facebook.

To some degree, when it comes to YouTube and TrueView Instream ads (which make up 95% of the often $1M USD/mo that our team spends on ads)

What if someone sees your ad but skips it after a period of thirty seconds?

You do not pay any taxes.

Youtube is paying for its instream ads when people say.

  • Watches 30+ seconds of your video ad
  • Or clicks through to your website

That means you pay only for traffic that is relevant to your content, and that users who are truly interested in your content.

You should think about it.

30 In a few seconds, people will get to know your brand, like it, and trust you.

Also, all the people who skip your ads and do not pay for them? Many of them will return to your site and visit it through Google.

Purple Mattress examined the data.

People who saw an ad but skipped it were 600% more likely to search on Google for Purple Mattress and actually visit their site.

That means you will receive free exposure and traffic each time your advertisements appear on YouTube.

What precisely causes Youtube ads to have such a halo effect? Drive awareness and sales beyond what is directly measured via click-based attribution.


You will have a completely different mindset when you visit YouTube than when you browse Facebook mindlessly.

You might hop onto Facebook and browse through your newsfeed while you wait for the store to open.

In fact, many viewers visit YouTube to learn something, or to be entertained.

Just look at this data from Google on why people visit YouTube:

youtube ads user intent on the platform

Our results were clear.

People go to YouTube with one clear intention, they want to learn something or entertain ourselves.

Because these people are very busy, the way they consume their content on the platform makes our ads that much more effective. Here is what makes them tick.

 On Youtube, turn the volume up to a high volume. Can you turn your sound off on Facebook?

Users go to YouTube with the intention of consuming, watching and listening to all the content on YouTube.

96Is it possible that people watch YouTube videos with the sound off? Facebook and the Sound Off are the best places to watch videos.

Users spend an average of 40 minutes per session on YouTube – versus just 12 minutes for Facebook.

What is the result? On Youtube, users are more engaged and absorbed by what they are doing, and the average time on the site proves that.

 I prefer Youtube’s ‘IMMERSIVE’ over YouTube’s ‘Current’. Facebook, the Internet messaging platform.

It’s clear that many people on YouTube are intent on watching videos with their eyes and ears. However, when they view your advertisements, they are completely different from the ones that they watched previously.

That is the reason why YouTube is so powerful.

It is a platform that allows people to interact with each other, instead of the interruptive nature of Facebook.

Instead of showing a simple interest in the newsfeed, Youtube users are immersed in content that they wish to view.

You should make advertisements that are consistent with their experience because this will produce more impact and better results than can be obtained from a quick click on Facebook.

Make sure that your advertisements are consistent with their experience.

You are going to have a bigger impact and better results than a quick click on Facebook.

Let us take a look at some other examples.

youtube ad case studies from our vidtao youtube ad spy tool and ad library

Impact of YouTube ads — Case studies.

What do all of these numbers add up to?

YouTube ads are one of the best ways to scale your business when done correctly.

Here are some examples of ads that have been running for some time.

Purple Mattress spent a lot of money on this one advertisement.
youtube ad spy tool screenshot of youtube ad performance from purple mattress raw egg test video

The purple mattress ads cost more than $400 to produce.

Would you like to see a picture that was probably created for under $1000?

Seek out this simple yet very effective product advertising for dating info. This advertisement has been spent $209k.
youtube ad spy tool dashboard screenshot of youtube ad performance

Your information products are designed for sale on YouTube.

Look at this amazing promo by Motley Fool which costs about 20k per day for this promotion. It is estimated that it costs over $1.2 million USD total.
youtube ad spy tool motley fool amsterdam 2019

Some people find it easy to explain unusual products on YouTube.

On the day of the Black Friday / Cyber Monday holidays, check out this video ad by Furbo Dog Camera. They spent some estimated $27k+ on that one video.
youtube ad spy tool screenshot furbo dog camera

It is interesting that the advertising was discontinued on Tuesday, December 4th, just after Cyber Monday and Tech Tuesday.

youtube ad spy tool dashboard screenshot

As for the iPhone App front.

We think Noom Weight Loss App has spent an estimated $405k on one YouTube advert for this one quiz.
youtube ad guide 2020 spy tool software

That is just one of many YouTube ads that they have been testing lately.

noom youtube videos from youtube ad spy tool dashboard

This video that I posted about the Japanese knives appears to be working well. In this one advertisement, they have spent over $85k.
youtube ad spy tool screenshot kamikoto knives

But, you need to keep in mind.

You do not have to produce a very good video to get great results from YouTube ads.

A simple iPhone video and some testimonial screenshots with high quality script copywriting are the winning ticket for the YouTube ad below called Make money online.

It appears that they are spending $3k per day on this advertisement, totaling $638k.
youtube ad spy tool dashboard screenshot for info product

You should allow your customers to sell your product to you.

When your customers are doing what is right, they are the best way to sell stuff on YouTube, and they can do it at the top of the funnel and deep inside of the funnel.

I found a couple of good examples from the skincare company Curology.
youtube ad spy tool curology video ad results
youtube ad spytool dashboard screenshot curology

Also, you can create an environmentally friendly graffiti removal business.

I hate to tell you but those guys are beating you.
youtube ad spy tool graffiti removal video ad

If you want it to be gold.

When you are talking to your customers on the phone, when you conduct an open ended survey, or if you are mining Amazon to get this data, you will know what it is.

  • Challenges
  • Hopes
  • Fears
  • Pain Points
  • Internal Storylines
  • etc.

And to the exact words that they use when they talk to themselves. 

What is the next step?

Let us talk about converting all this gold into highly performing YouTube ads.

Your ad creatives are the most important part of your YouTube ad campaign.

  • good ad with bad targeting and media buying strategy can still give you decent results.
  • bad ad with good targeting and media buying strategy is probably not going to work.

You do not need “pro quality” videos that are super produced to grow your YouTube channel to thousands of users per day. Start with an iPhone or a GoPro camera or webcam.

You must always be genuine and speak to your ideal customer to understand your pain points, hopes and fears.

It’s covered by doing your research.

Let us begin with quick video script formulas and frames we like to use when testing out new offers.

Top of the funnel is YouTube Ad Videos, Formulas and Frames.

If you are going to show these videos to people who are completely unaware of your intention, there are a few things you should contemplate.

You’ll want to spin up at least 3 different 1–3 min videos following these formulas/frameworks — the more you test the better odds you have of finding a winner you can scale to the moon with.

Now let us walk through a very general framework, and a couple of excellent alternatives, so you have a few options to try out when you first try to script your YouTube ads.


The next step.

That was tremendous information. So, let us take a moment and allow this to sink in. I would like to make sure that you understand this.

  1. you have to grow your business in 2020 with YouTube ads…
  2. if you do not take action to diversify your traffic right now…
  3. Understand that you do NOT need a huge production budget to get started running Youtube advertisements. In most cases, you may use merely an iPhone to create your first video, and you may even test it by watching it.

As soon as we have established that, and you are ready to blast some Youtube ads all around the internet, let’s dive into the nitty gritty of it all.

How to create Youtube ads, step by step guide for 2020.

This is part two of my YouTube Ad series. I will share with you how to set up, run, and test your ads.

youtube ads who is your customer

First, you must perform some research. Get to know your ideal customer.

Who do you think your business serves?

This is the most important question we need to get concrete answers to before we get into anything else.
And that’s exactly what we’re going to walk through in this section:

I’ll walk through a simple research framework that will allow you to understand your customers’ hopes, fears, pain points and storylines better than they would themselves. 

Do not skip this step. That is the secret sauce that makes Youtube advertisements work.

First, let us step back a little.

What is advertising and what is it?

Advertising is simply a way of connecting people who have problems with solutions to those problems.

Any advertising platform, whether it be YouTube, Facebook, or anything else, is simple, it helps people communicate with one another.

The more we learn about it, the more we understand it.

  • Who our customers are
  • The problems they have…
  • How their lives will change from solving these problems…

That way we can communicate to people the true value of what we sell, and make sure that people whom we help are aware of what we have to offer.

Let’s take a look at how you actually collect this data.

Deep dive into demographics.

Let us start with the obvious demographics that are very large.

When you have a business with Google Analytics, and you have set up Google Analytics, you can see a preview of the demographics of your audience.

You should try to find the age and gender breakdown of your audience. Login to the portal, and navigate to the section called ‘demographics’ and ‘overview’.

youtube ad research - demographics breakdown age gender etc

You should try to find the age and gender breakdown of your audience. Login to the portal, and navigate to the section called ‘demographics’ and ‘overview’.


Go to and you can determine where the people are on the national, state, and city level.


You will find a way to obtain this data using another method in case you launch a new business or simply have not created Google Analytics. We will show you how to do that.

Ok, so now we have a broad view of our audience. We also know their age, gender, and geographical location.

Do not forget to take some notes on what you find here, as that will help us determine how we target and how we approach the first test.

However, our research is only scratching the surface. It is not important much.

We want to look at how we can go much, much deeper.

youtube ad research - humans are not numbers

Each impression is similar to your advertisement being seen by a human being.

We are always obsessed with numbers when we are working as digital marketers.

  • CPM (“Cost per Mille” or cost per 1000 impressions)
  • CTR (Click through rate)
  • CPC (Cost per click)
  • CPA (Cost per acquisition)
  • etc.

We are so focused on numbers that it is very easy to forget something.

Behind each impression, click, or purchase is a human being with a unique story going on in their

Advertising that is good will help us build relationships and bring results. That is the essence of good advertising.

  • Understanding the story going on in your prospect’s head
  • Speaking directly to this story – and the hopes and fears that underlie this story

Also, how can we understand the conversation that people are having in their heads?

Here’s what not to do: Guess.

That is the reason that most of the “customer avatar” exercises go wrong. You have probably seen a few of them.

youtube ad research - don't do this customer avatar unless you have data

My source of information is

That Tommy Technology avatar is based on a bunch of guesses. It’s probably worthless.

It seems that there are many personas, and each one of them is either based on incomplete data, poorly sourced data, or even no data at all.

– Jennifer Havice, ConversionXL

What should we do instead?

If you want to understand the conversations that are occurring in your market right now, click here.

You can craft the most impactful message that will get your ideal customers to take action.

Do not guess!

So, instead of borrowing these messages from your market, steal them directly from your market.

You should not look inside your head to find the messages that convince your prospects.

You do not have a prospect. How do you know what they should hear? You are vanity to think that you could do it.

The opposite of writing your message, steal it. Obtain income directly from your prospects.

– Joanna Wiebe, founder of CopyHackers

It is easy to receive your business and your email list online. Some good ways to accomplish this are below.

  • Do Phone Interviews with your existing customers.
  • Interview your site visitors in real-time with tools like:
  • Open-ended Survey: Email your list of customers (or pay to email someone else’s list of customers) and use an open-ended survey framework like  Ryan Levesque’s ASK Method “Deep Dive Survey” to extract open-ended survey responses from them, which you can mine for insights.
    • Ryan’s outstanding book ASK & ASK Method Masterclass go into much more detail on this, but a very quick overview is this:
      • Ask your audience (via email, a simple Google Form or survey software like or typeform) to describe, in their own words, their “#1 single biggest challenge” when it comes to whatever problem your product solves.
      • Armed with this data, you summarize & classify the responses into 3-5 groups
      • Build out customized messaging to speak to each of the segments you identify
    • Here is another approach to open-ended surveys from ConversionXL

There are two helpful tips at the end of your survey.

  1. Send participants to a video submission form to automatically collect video testimonials you can use in your marketing.
  2. As the final “thank you page” for completing the survey, send them to a special offer to buy your product at a discount (this works even if these customers have already purchased the product)

There was no audience. That is not a problem.

What happens, if you are starting out in a new market and you have no email list, social media follow or audience?

Don’t bother. You have a couple of choices.

Number one, there is another option of paying for email drop-ins.

  • Reach out to product owners in your market and ask to pay them to send an email with a link to your
    open-ended survey to their list of buyers.

There is no list option #2: Amazon review mining.

  • If you have more time than money available, then you have a good option. Just apply Joanna Wiebe’s “Amazon review mining” approach by looking at reviews for a few relevant books on amazon, copy/pasting memorable phrases into a spreadsheet like this:.
youtube ad research - amazon review mining from copyhackers

Joanna Wiebe has given us more gold, regarding this process.

You see what is really important to your prospects in reviews. You will see recurring questions and statements. You can sense that the people are frustrated and they are excited. All that is written in your copy and messaging hierarchy. Your visitors should read all the things that you say, in the order in which they say them. Naturally, what you are revealing is not only pure gold for copywriting, but also for developing your products.

– Joanna Wiebe, founder of CopyHackers

(Check out her post here for the full breakdown on Amazon Review Mining, plus a link to an editable version of the above table)

The formula for the top of the funnel YouTube ads.

The first part is Hook and Patrick Introvert, which you will learn during the first five seconds.

If you want people who are relevant to your offer to see your ad, the first five seconds are extremely important. They should stop what they are doing, and they should not click on the “Skip Ad” button.

So we are trying to get relevant viewers interested enough that they stay longer than when the “skip ad” button pops up five seconds into the video.

The first five seconds of the advert should not be skipped.

Question Hook: Asking a relevant question is a simple way to “hook” relevant viewers in these first 5 seconds:

  • Ask a question directly to your target audience (use their language from your survey/interview here)
    • “Do you struggle with [problem]?”
    • “You would prefer to get to that result without [the main obstacle]?

Check out this question hook example from the Organifi YouTube Ad. This one ad costs $77,000.

Notice the opening question: “Ever pass someone on the street with gorgeous glowing skin and wonder, “What does she got? I need to get some of that!

The hook is, do this, not do this.

Openings are a good starting point for a good discussion and this formula can work well too.

When you describe a problem, you should choose x instead of y.

Here is an example from a product that treats arthritis.

If you have arthritis, then you should eat a lot of these fruits and not a lot of these tomatoes.

Interrupt the audiovisual pattern.

If you can demonstrate something that is unusual for the first five seconds, as long as it is relevant to your product and your market, and if you do not attract people who aren’t a good fit, that is a great way to begin opening your ads.

You may use odd objects in the video to catch people’s attention, and you may even ask a question related to the odd object.

What is the meaning of holding up an unusual situation and gaining a result that your audience wants? I’ll come back to that in a moment.

The following example of a 5-second pattern interrupt is from a YouTube advertisement for the Shopify course by Alex Becker.

What do you notice as the sewing machine thumps on the table? Do not forget that more than 90% of Youtube videos are watched with sound on. I am willing to use sound in my pattern interrupt.

It appears that another audiovisual pattern interrupts the news in the newspaper Epoch news. The newspaper has spent nearly one million on an ad. You notice that they are using two mechanisms together.

  • Visual pattern interrupt (image of current news hot topic) as a prop, along with…
  • A relevant question directed to their target market: “Are you tired of the media pushing false narratives?”

You might want to look at this intro from the alternative streaming media site Gaia, where you are shown images of supposedly alien life forms while they say this

The results of our experiments strongly support that these beings do not have a close relationship with any known organism.

If you are interested in aliens, consider staying up for five seconds to watch more.

I believe a large majority of people are watching this ad since its estimated ad spend is more than $280k.

Give us your username and success stories.

Nothing adds to trust as a positive user experience.

You can also use real usergenerated video testimonials, similar to the one you collected with the video collection above, like metabolic factor does.

Higher production of user stories.

Do so in two layers so you have the most impact, and then stack two layers on top of one another. It works wonders. Take this example from the Noom Weight Loss app.

You are about to discover X.

It is not the most creative hook, but it works well.

“You’re about to discover how I did [desirable result]”

Here is an example of a YouTube advertisement for a training product on Amazon that has obviously been successful ($688k adspend).

The demonstration was simple.

Do you possess a unique physical object that justifies itself?

If you use a straightforward & simple product demonstration, you can also use it as an opening hook such as in these two physical products ecommerce YouTube ads, that have a combined estimated adspend of over $400k.

I will provide you with the next steps.

Whatever approach you choose, you will hook your prospect’s attention in the first five seconds of each contact. If you do that, you will have earned their attention, and they will move on to the next step.

Part two is Disqualification before the first thirty seconds.

So, you are paying for YouTube to insert instream ads whenever someone clicks on one of those ads or watches more than 30 seconds of the video.

It is important that you reduce your CPC and CPA by disqualifying as many viewers as possible who are not a good fit for the product. Do that as soon as they hit the 30 second mark.

Sometimes, the opening hook itself filters out the viewers. Sometimes, you may need to disqualify specific viewers.

Be careful of your audience. People who keep signing up for your offers but who are really poor fit for what you are offering?

When you are advertising on a webinar or a sales call, this disqualification process can be very important.

An example exists. You have a high ticket coaching program, and suddenly you are getting a bunch of MLM and drop shipping people signing up to make sales calls. That will waste both your staff and your time.

Simply disqualify these poor and unfit viewers by calling them out directly.

If you are doing an MLM or a business with Amazon drop shipping, you should know this. These things are not for you.

You can skip the section if the hook itself does not disqualify people.

Part 3: Triggering emotions.

Emotion drives our actions.

That is the problem with your YouTube ad. Be sure the video resonates with the feelings that your ideal target audience has around this issue, so that they finally take action to improve their lives.

You should make your audience more emotional by utilizing their internal thoughts and fears that they have learned from your surveys and interviews. And use exactly the same language that they are using to tell the stories.

  • “Are you struggling with [pain – using your audeience’s exact survey language]?”
  • Activate the desire: “Do you wish you could [get desired result – using the exact survey language]?”
  • Create an “Open Loop” that teases future solution without common obstacle: “In just a moment I’m going to show you exactly how to [get desired result] using [curiosity-provoking method] and without [common obstacle]…”

Those are some words that you could begin with. However, there is a much more powerful way to bring pain and desire into your audiences. Create an “open loop” to encourage them to take action.

Storytelling has the aim of triggering emotion.

What is the most effective way to accomplish that?

  • Attract the attention of your ideal audience
  • Engage their emotions
  • Get them to take action?

What is the answer?


Because stories tell stories, you are able to build rapport and authority by sharing them.

  • How you understand where the prospect is at
  • Why you are uniquely qualified to speak about this topic and help them achieve what they want to achieve, via your product/process/etc

What is the power of stories?

What makes stories so powerful?

They possess one of the most unique attributes of humans.

We humans are the only ones who are able to imagine things beyond our direct experience.

I believe that is what happens with our evolutionary hard wiring. We respond to stories as if we were actually experiencing them.

It is one of the best ways to communicate with your audience in order to encourage them to take action.

They are telling themselves a completely different story right now.

  • Their Inner story…
  • Their Worldview…
  • Their Beliefs…
  • Their Hopes…
  • Their Fears…
  • How they frame their life from the moment they were born up until this point…

These are the inner stories you want to become intimate with if you want to properly serve your audience by leading them to the transformation your products promise.

The research and research data you gather allows you to do that.

Listed below are a few of the ads that generate excitement by telling stories.

See the video of founder Vishen Lattiani telling him about his own aging and fitness. The video is about a fitness product. It starts at 0:38.

Alternatively, you could feature your customers’ story in the video, for example Weight Loss App Noom does.

Or, if you have a lot of survey data, but you do not have a way to get your customers on camera? You may also hire actors to translate your customers’ language to express their frustrations and hopes, as Fittrack has done. Noom has done that in this instance.

Add this to the brand story.

We have been discussing that customer stories are very important, especially when focusing on problem solving products.

It is also extremely important that brands tell a story, particularly when it comes to distinguishing their offerings from other, similar commoditized products.

Why can Rolex charge more than 10k for a clock that tells the time? You can get the product from Rolex for $25.

Simple. When it comes to positioning your brand, it is all dependent on the tale Rolex tells about their brand. I will speak about watches. Do you see this new ad created by Filipo Loreti? They want their product to be a blend of luxury Italian style at a very affordable price. Notice how it clearly explains the mechanism that allows both of these properties to exist in one product. The ad shows that the watch brand uses high quality footage and storytelling to make it stand out from other watch brands.

Part 4: Learning which is valuable and social proof.

If you are able to do so, then you should include social proof, demonstration of expertise, or value in your Youtube ads.

You can do a few things in your ads that will allow you to do that.

  • Provide a brief demonstration of value (“quick tip” etc.) while making clear that there is much more value
    when they click through to the next page.
  • Show other customers who have also achieved success
  • Show where you/your product have been featured in media etc.

A quick tip, an example of its value.

A social proof example.

In this video, I use screenshots of testimonials.

You can also summarize your customers’ results and show them on the screen, like this ad from Amazon Training which starts at 0:08.

One other alternative idea is to let your actual clients explain how positive your product has been for their lives, as this doctor said. This is the ad for Squatch soap, starting at 3:53.


Your video must not end too soon, before the viewer has had a chance to visit your offer page. When you have completed watching a video, after it has been finished, for at least 15 seconds, tell the viewer exactly what to do to take the next step.

William Painter makes it very funny and edgy. All of his ads generate insane amounts of traffic. In this video you can see that they take this long lead time to extreme. You can scroll down to 2:30 to get 45 seconds of ‘call to action’ plus comedy.

Describe the middle and bottom of funnels in videos.

Therefore, your audience saw your Top Funnel video or, at a minimum, 30 seconds of it, and they clicked on your website.

They did not sign up and purchase anything.

So, now what?

If you are able to work with non-buyers, then you can engage them, and if you do that, you can demonstrate that you have value, and get them to take a step by using the video ads framework below.


YouTube ads with social proof.

Do you want to really push your aspiring customers over the edge and convince them to try your product? Your customers and visitors can display how they are interacting with your product and saying that they are happy with it. That is the gold for that. William Painter Sunglasses has two very good examples of this approach.

Review Videos for ‘An Ownership Experience’.

The videos about unboxing give your viewers the opportunity to experience what ownership is like when you own a product. They will understand what it is like to receive the product and interact with it. Also, if you believe that unboxing videos would make sense for your product, you should definitely test them out for your mofu/bofu advertisements.

This is from Prolon.

Here is a video of an unboxing ad from fabfitfun, a subscription beauty box company.

How do I make a video of my SaaS or Info product that is unboxed?

Is it possible to run advertisements on YouTube for Software as a Service (SaaS) or Information Products? It is not necessary to have a physical product to generate ownership experiences for your prospects.

Take a quick look at how it looks to use the product, like the people at Wikibuy do in this ad.

Two videos of fencing jumpers are at the bottom of the funnel.

Persons who are familiar with your brand and brand understand the value you have to offer.

Sometimes all they need is a small push to push them past the edge of their pod.

This is the main reason that low funnel (BofU), and defensive advertisements are effective in gaining people’s attention and getting something bought.

Items such as these are examples.

  • A deadline to join
  • An expiring discount or bonus

Some examples from Tai Lopez. Notice how he used a time limited one day left advertisement and offered – and he still spent roughly $38k on it.

Bottom of the funnel. Product Reminder Video or, Product Reminder.

Is it good when people already know you, like and trust you, and better still, if they already have something from you?

Sometimes it is all that you need to show them.

This is a good example of what Filippo Loreti says. Please do not be fooled by the small amount of money that is spent on this ad. It is possible that this group is aimed only at very deep phases of consciousness, where each view can really have an impact.

I am going to give more notes on video production.

So now you know how to move from one stage to the next in your YouTube video advertising funnel. I will give you several technical points before I wrap up this post so you know how to prepare for the next stage.

Set up your ads, launch them.

“Modular” Hooks/Intros for Top of Funnel

It is important that the first 30 seconds of a video ad are the most important. Take as many chances as possible to succeed. Create several intros and upload them to YouTube, so you can “bolt on” them to the rest of the video. So, see which intros perform the best.

Test your assumptions and then iterate from there. This technique was learned from Shash Singh, the managing director of Linx Digital. Thanks Shash for sharing this 🙂 )

Quick editing of cuts.

People’s attention spans are decreasing. Please cut all the gaps between the “ums” and the “ah” words in order to make the edit as tight as possible.

Add the offset angle to the equation.

If you have a budget or just an extra iPhone, you should shoot both face-to-face and 45 degrees off camera angles.

Add this offset angle to the perspective, and you build credibility by simulating an interview.

I provide an example.

You can also increase your speed by ten percent.

It is recommended that you increase the speed of your video by 10%. You are sure to cause your viewers to become bored and increase their response.

The equipment is video equipment.

You do not need to have a huge budget to create successful YouTube video ads. Can you use two items to produce high quality videos on a budget?

  • Gimbal – add a gimbal to your smartphone to keep your walking shots smooth and professional
  • Bluetooth Mic – audio quality is actually very important. Enhance your audio with a bluetooth mic that
    connects to your smartphone.

How is it possible to spy on YouTube ads of competitors?

Do you want access to the YouTube Ad Research and Spy Tool that we built?

We have seen that our team manages over $1 million USD per month in Youtube ads. We have seen that video is the most important component in whether you succeed or fail with youtube ads.

So we could help our clients have as much success as possible, we built – from scratch – an internal tool that
allows us to track ads from competitors and see what YouTube ads are working right now.

Why? Because when it comes to YouTube ads, the last thing you want to do is guess.

You need to begin by modeling what is already working in your market. You can then iterate from that point.

Have you had any success imitating someone else?

Make the assumption that you are becoming a breakthrough advertiser in your market. Combine elements of videos that are working in other markets so your company becomes the one everyone else is trying to imitate in your market.

Using VidTao, it is possible to conduct such a study. Because we want you to achieve your goals with your Youtube ads, we want you to have access to all the ads that you see on YouTube.

(No hidden “gotchas” or anything – it’s 100% free for you to use, with full functionality)Get the Free Software + Content Updates

You will also receive our regular emails regarding YouTube strategies and tactics, and much more.

Next, what is next? How do you set up, launch, and scale your YouTube ads?

This post is getting a little longer, so we are going to break it up.

In Part 1, we have covered all the basics.

  • Why you need to be on YouTube for 2020 (and beyond)
  • How to find your audience – and enter the conversation that’s already going on in their head about their
    challenges / hopes / fears / dreams…
  • And how to script & create video ad creatives that
    • Get attention…
    • Get viewers to know/like/trust you…
    • And get results

Next, we will talk about part two of Vidtao’s 2020 guide to YouTube advertisements. You can create a YouTube advertisement and then go over all of the technical details.

  • How to research & reveal the best audiences to target
  • How to set up your campaigns
  • And how to launch, optimize, and scale it all

This case study will describe how our team took a brand like that.

  • I have been banned from using Facebook. Does that sound familiar?
  • I am a new YouTuber with no advertising history.

Daily advertising spend increased to $9,756. All that in less than six weeks.

You may read part 2 of this report.