Why YouTube Display Ads Are Essential for Franchise Growth
YouTube display ads are banner-style advertisements that appear alongside YouTube videos on desktop computers, offering franchises a cost-effective way to reach engaged viewers without creating video content.
Quick Overview of YouTube Display Ads:
- What they are: Banner ads (300×250 or 300×60) next to YouTube videos.
- Where they appear: Desktop only, to the right of or below the video player.
- How they work: Part of Google Display campaigns with YouTube placement targeting.
- Pricing: Cost-per-click (CPC) model, so you only pay for clicks.
- Best for: Supporting video campaigns, driving website traffic, and brand awareness.
As the world’s second-largest search engine, YouTube offers a massive audience. Many franchise marketers focus only on video ads, creating an opportunity with display ads. This is especially true when you consider that viewers who see both video and display ads from the same brand are 23 times more likely to engage further.
The challenge for franchise marketers is maintaining brand consistency across locations while maximizing ad spend. YouTube display ads offer a solution by allowing precise targeting of specific channels and videos on a budget-friendly, click-based pricing model.
However, there’s a crucial limitation: with 70% of YouTube viewing on mobile, display ads’ desktop-only format reaches a smaller but highly engaged audience.
I’m Rusty Rich, President of Latitude Park. Since 2009, I’ve helped franchises build scalable digital advertising strategies. I’ve learned that the key to success with YouTube display ads is understanding how they complement your broader video strategy, rather than compete with it.
The Foundations: What Are YouTube Display Ads and How Do They Differ?
Imagine watching a tutorial on your laptop and seeing a banner ad for a local business to the right of the video. That’s a YouTube display ad—a visual ad that sits alongside the content you’re watching.
These ads are essentially digital billboards within YouTube’s desktop interface. Unlike video ads, they are static or animated graphics positioned around the video player. They are part of Google’s Display Network (GDN), which includes millions of sites, apps, and Google properties. On desktops, you’ll find them to the right of the feature video or below an expanded player. The key thing to remember is they are desktop-only. This might seem limiting, as 70% of YouTube viewing happens on mobile devices.
However, this limitation means you’re targeting a specific, often highly engaged audience. Desktop users tend to be more intentional in their browsing and more likely to take action. As YouTube evolved from a desktop-first to a mobile-dominant platform, YouTube display ads became one piece of a larger, multi-device advertising puzzle. They work best when complementing your video campaigns. You can learn more about the Google Display Network at the About Google Display ads and the Google Display Network page.
Key Differences from Other YouTube Ad Formats
Understanding how YouTube display ads compare to other options helps you choose the right tool for the job. The most obvious difference is the format. Display ads are purely visual and don’t interrupt the viewing experience like a pre-roll video ad. They wait for viewers to notice them and choose to engage.
| Ad Format | Format | Primary Placement | Device Compatibility | Pricing Model |
|---|---|---|---|---|
| Display Ads | Static image or animated banner | To the right of video, above suggestions, below player | Desktop only | Cost-per-click (CPC) |
| Skippable In-stream Ads | Video (5+ seconds, skippable after 5) | Before, during, or after other videos | All devices | CPV, Target CPM, Target CPA, Maximize conversions |
| Non-skippable In-stream Ads | Video (up to 15-20 seconds) | Before, during, or after other videos | All devices | Target CPM (cost-per-thousand impressions) |
| Bumper Ads | Short video (max 6 seconds) | Before, during, or after other videos | All devices | Target CPM |
| In-feed Video Ads | Video thumbnail + text | YouTube search results, watch next, mobile homepage | All devices | Cost-per-view (CPV) |
The cost-per-click (CPC) pricing for YouTube display ads is franchise-friendly, as you only pay when someone actively clicks your ad. This makes budgeting predictable and ensures you’re investing in genuine interest. A click on a display ad is a conscious choice to learn more, often leading to higher-quality traffic for your franchise.
Advantages and Disadvantages of Using Display Ads
Every ad format has pros and cons. Here’s a look at YouTube display ads:
Advantages:
- Cost-Effective: You can repurpose existing image assets without needing video production resources. The CPC model means you only pay for genuine interest.
- Less Intrusive: Unlike video ads that demand attention, display ads respect the viewer’s choice, which can create a more positive brand impression.
- Supports Video Campaigns: They are the perfect complement to your video content, reinforcing your message and keeping your brand top-of-mind.
Disadvantages:
- Desktop-Only Limitation: You miss the 70% of YouTube viewers on mobile devices, making display ads unsuitable as a standalone mobile strategy.
- Lower Click-Through Rates: Static banners typically generate fewer clicks than video content because they require active engagement.
- Banner Blindness: Users have learned to mentally filter out banner ads, so your creative must be compelling to break through.
Despite these limitations, the precision targeting and budget-friendly nature of YouTube display ads make them a valuable part of a comprehensive franchise marketing strategy.
A Step-by-Step Guide to Launching Your Campaign
Launching YouTube display ads happens within your Google Ads account. Getting the details right is key to a successful campaign that doesn’t burn through your budget.
First, sign into your Google Ads account and create a new campaign. When choosing a goal, we recommend “Website traffic” to drive visitors to location pages or “Leads” for contact forms and calls. Your goal selection influences the bidding options Google suggests.
Next, select “Display” as your campaign type. This is crucial for accessing the placement targeting options needed for YouTube. From there, define your campaign settings, such as geographic areas for franchise territories, languages, daily budgets, and bidding strategies.
The real work begins when you set up your ad groups and configure targeting. This is where you can focus on specific YouTube placements instead of letting Google scatter your ads across the web. While Google’s AI can help with bidding and audience targeting, manual placement targeting often delivers better results for YouTube display ads.
For more details, see Google’s guide: Create a Display campaign page.
How to Effectively Target Specific YouTube Channels and Videos
YouTube display ads excel at allowing you to handpick where your ads appear. Instead of hoping for relevance, you can target specific channels your ideal customers already watch.
In your Display campaign’s ad group, steer to ‘Content’ and then ‘Placements’. This is your command center for targeting.
- Search by channel name: For a fitness franchise, target popular workout channels. For a food franchise, target cooking channels.
- Search by video URL or ID: For even more precision, paste a specific video’s URL or unique video ID into the targeting options.
- Use bulk placement entry: For large campaigns, upload lists of channels and videos at once.
Exclusion lists are just as important. Exclude channels that are not brand-safe or are not delivering results by going to ‘Placement exclusions’. If your ads don’t appear on a targeted video, it might not be monetized or eligible for display ads. Always check your “Where ads showed” report to see where your ads actually ran.
Understanding YouTube vs. Broader GDN Targeting
While YouTube display ads are part of the Google Display Network (GDN), treating YouTube like any other GDN placement is a mistake. On the broader GDN, ads are shown based on general audience segments and content targeting. It’s a wider net, but less precise.
YouTube targeting is different because of placement specificity. Instead of targeting “all fitness websites,” you can target a specific yoga instructor’s channel. This creates powerful contextual relevance. When someone watches a video about “best pizza in Chicago” and sees your pizza franchise’s ad, the connection is immediate.
The audience intent on YouTube is also unique. People are actively choosing content, making them more engaged and receptive to relevant ads. You can manually enter ‘youtube.com’ as a placement to target display inventory across the entire YouTube desktop platform, though with less control.
For reaching audiences beyond display ads, Google’s Demand Gen campaigns show visually rich ads across YouTube’s Home and Watch Next feeds. The key is to recognize that YouTube is a unique environment, and your YouTube display ads should leverage that mindset.
Creative and Strategy: Best Practices for Your YouTube Display Ads
Even with perfect targeting, your YouTube display ads need compelling creatives to succeed. The goal is to grab attention, convey a clear message, and prompt action.
One of the most efficient methods is using responsive display ads. You upload assets—images, logos, headlines, and descriptions—and Google’s AI automatically generates optimal ad combinations for various ad slots. This saves time and ensures your ads look great everywhere.
When designing, focus on visual hierarchy. Make your branding prominent but not overwhelming. Your call-to-action (CTA) should be crystal clear and benefit-driven. Instead of just “Learn More,” try something more engaging like “Save Big Today.” Message consistency across all your marketing efforts builds trust and reinforces your brand.
Technical Specifications and Requirements
To ensure your YouTube display ads run correctly, they must meet technical requirements. Adhering to these specs prevents rejection and ensures proper display.
Here’s a summary for standard image ads on YouTube:
- Dimensions: 300×250 pixels (Medium Rectangle) is most common. 300×60 pixels (Leaderboard) is also used.
- File Types: Standard web formats like JPG, PNG, and GIF.
- File Size: Keep it under 150 KB to prevent slow loading or rejection.
- Animation: For animated GIFs, the animation length must be 30 seconds or less. It can loop but must stop after 30 seconds.
- HTML5: Generally not permitted for standard display ads on YouTube when served directly through Google Ads.
Always check the latest Google Ads guidelines, as they can change.
Designing Compelling Creatives That Capture Attention
Designing for YouTube display ads is about strategic communication on a small canvas. To combat “banner blindness,” your ads must be eye-catching and persuasive.
- Bold Colors and Contrasts: Use colors that pop against YouTube’s white or dark interface.
- High-Quality Imagery: Use professional, high-resolution images that convey quality.
- Minimal Text, Maximum Impact: Use concise, benefit-driven headlines. Viewers scan, they don’t read.
- Clear Value Proposition: Highlight a specific offer or unique feature. Why should they click?
- Animated GIFs: A subtle animation can draw the eye. Remember the 30-second limit.
- Strong Call-to-Action (CTA): Make your CTA button prominent with actionable text like “Claim Your Offer” or “Book Now.”
These ads are for desktop users who are often more attentive, so design your creatives to guide their eye to your message and CTA.
How effective youtube display ads complement video campaigns
YouTube display ads and video campaigns are powerful allies. They don’t compete; they collaborate to create a more cohesive advertising strategy.
- Reinforce Brand Message: A display ad appearing after a viewer sees your video ad serves as a gentle reminder, reinforcing brand recall.
- Companion Banners: Many video ad formats allow for companion banners on desktop, offering an additional clickable touchpoint during video playback.
- Drive Traffic: After a user watches a relevant video, a display ad can capture their interest and drive them to a specific landing page.
- Retarget Video Viewers: Use YouTube display ads to retarget warm audiences who have watched your video ads, nudging them further down the sales funnel.
By integrating display ads into a broader video strategy, you create a multi-layered approach that maximizes exposure and guides users from awareness to conversion.
Measuring Success: How to Prove the ROI of Your Campaigns
If you only look at the final click before a conversion, you’re missing most of the story behind your YouTube display ads. This last-click attribution model has a major blind spot, as it ignores the display ad that first introduced your brand or kept it top-of-mind.
This is where View-through Conversions (VTC) are crucial. A VTC is recorded when someone sees your display ad, doesn’t click, but later visits your website and converts. They might have seen your ad, remembered your brand, and acted on it later. This metric helps reveal the true ROI of your campaigns.
Viewable impressions are also important. An impression is only counted as “viewable” if at least 50% of your ad appeared on screen for at least one second. You can’t influence someone who never actually saw your ad.
Finally, assisted conversions in Google Analytics show how many conversions a channel contributed to, even if it wasn’t the final click. YouTube display ads are excellent team players, setting up scoring opportunities for your other marketing efforts. Tracking these metrics together provides a clear picture of your campaign’s value. You can learn more on Google’s YouTube ads and metrics help page.
Key Metrics for Measuring the performance of youtube display ads
Focusing on the right numbers helps you understand the true performance of your YouTube display ads.
- Click-Through Rate (CTR): The percentage of people who saw your ad and clicked. A strong CTR indicates your creative and targeting are effective.
- Cost-Per-Click (CPC): The amount you pay for each click. A lower CPC allows you to drive more traffic for the same budget.
- Conversion Rate: The percentage of visitors who take a desired action after clicking. It tests if your landing page delivers on your ad’s promise.
- Cost-Per-Acquisition (CPA): The cost to get one conversion. Factoring in VTCs often makes the CPA for display campaigns look much more attractive.
- Viewable CPM: The cost for 1,000 impressions that were actually seen. This is essential for measuring brand awareness campaigns.
- View-through Conversion Value: Assigns a dollar amount to indirect conversions, helping you calculate true ROI.
Using Performance Planner for Forecasting and Optimization
After your YouTube display ads have run for a week or more, Google’s Performance Planner can help you make smarter budget decisions. It analyzes your historical data to forecast future performance.
The tool allows you to simulate budget scenarios, showing the forecasted impact on clicks, conversions, and costs. This helps answer questions like, “If we get an extra $2,000 next month, where should we spend it for maximum impact?”
Performance Planner excels at forecasting conversions at various spending levels, which helps set realistic expectations with franchise owners. It also identifies growth opportunities by revealing where increasing bids or budgets could generate more conversions at your target CPA. You can access this tool in your Google Ads account through the Performance Planner. For franchise businesses, it’s an invaluable resource for making data-driven decisions.
Frequently Asked Questions about YouTube Display Ads
Running YouTube display ads for the first time can bring up a lot of questions, especially for multi-location franchises. Here are the answers to the most common concerns.
Do YouTube display ads show on mobile?
No, standard YouTube display ads are a desktop-only format. They appear to the right of the feature video or below the player on desktop computers. Since over 70% of YouTube watch time is on mobile, this is a critical factor to remember.
However, this doesn’t mean you can’t reach mobile users with visual ads. Overlay ads can appear on videos on mobile, and Google’s Demand Gen campaigns can place display-like ads in YouTube’s mobile feeds. Think of YouTube display ads as one tool in a larger, multi-device strategy.
Can I run display ads without having a video ad?
Yes, absolutely. This is a major advantage of YouTube display ads. You can run a standard Google Display campaign, use placement targeting to focus specifically on YouTube, and reach viewers without creating any video content.
This makes display ads a perfect entry point for franchises that are not yet ready to invest in video production. You can leverage existing image creatives from other campaigns and start advertising on YouTube’s massive platform right away.
Why are my display ads not showing on the specific video I targeted?
This is a common and frustrating issue. If your YouTube display ads aren’t appearing on a specific video you’ve targeted, there are a few likely reasons:
- The video may not be monetized. The channel owner may not have enabled ads, or the content might not meet YouTube’s advertiser-friendly guidelines.
- Your targeting is too restrictive. If you’ve layered demographic or audience targeting on top of your placement, your ad will only show if a viewer matches all criteria.
- Competition and bidding. Other advertisers may be outbidding you for that specific placement.
To investigate, check your “Where ads showed” report in Google Ads. This report will show you exactly where your ads actually appeared and help you diagnose any targeting issues.
From Clicks to Conversions: Maximize Your YouTube Ad Spend
We’ve covered how YouTube display ads are strategic tools that can significantly amplify your franchise’s marketing. These desktop-only ads are not a consolation prize; they are a precise and cost-effective way to reach a highly engaged audience.
While 70% of YouTube viewing is mobile, the remaining 30% on desktop are often actively researching and ready to act. For franchises, YouTube display ads solve the challenge of maintaining brand consistency across locations while controlling costs. The ability to target specific content that aligns with your brand creates genuine connections with potential customers.
The real magic is often found in view-through conversions. A customer might see your ad, not click, but remember your brand and make a purchase later. This brand-building impact is a key benefit of display advertising.
YouTube display ads work best as part of a holistic strategy, complementing your video campaigns and reinforcing your message. My final piece of advice is to never stop testing. Experiment with different creatives, calls-to-action, and targeting combinations to open up your campaign’s full potential.
At Latitude Park, we’ve seen how the right YouTube display ads strategy can transform a franchise’s digital presence. We understand the unique challenges of multi-location businesses and are passionate about helping you succeed.
Ready to turn your display ad strategy into a conversion-driving machine? Get expert help with your Google and YouTube Ads strategy.
