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Advertising intermediate 45-60 minutes

How to Create YouTube Video Ads: A Step-by-Step Guide

Learn how to set up, target, and launch high-converting YouTube video ads to reach more customers across Australia.

Emma 25 January 2026

YouTube is the second largest search engine in the world, and for Australian small businesses, it offers an incredible opportunity to get your brand in front of a highly engaged local audience. Whether you’re a plumber in Brisbane or a boutique in Melbourne, YouTube ads allow you to tell your story visually and only pay when people actually engage with your content.

Prerequisites: What You’ll Need Before Starting

Before we dive into the Google Ads dashboard, ensure you have the following ready:
  • A YouTube Channel: Your video ad must be hosted on a YouTube channel (it can be set to 'Unlisted').
  • The Video Creative: A high-quality video (aim for 15–30 seconds for beginners).
  • A Google Ads Account: Linked to your business email.
  • A Valid Payment Method: Usually a credit card or direct debit linked to your Australian business bank account.
  • Clear Goals: Know if you want website traffic, brand awareness, or leads.

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Step 1: Upload Your Video to YouTube

Before creating the ad, upload your video to your YouTube channel.
  • Screenshot Description: You should see the 'Create' camera icon in the top right of your YouTube Studio dashboard.
  • Pro Tip: If you don’t want the ad to appear on your public channel feed, set the visibility to 'Unlisted'. This allows the ad to run while keeping your main channel page clean.
In your Google Ads account, go to Tools & Settings > Setup > Linked Accounts. Find YouTube and follow the prompts to link your channel. This allows you to see engagement metrics and create remarketing lists based on who has watched your videos.

Step 3: Create a New Campaign

Log into Google Ads. Click the blue + button and select New Campaign.

You will be asked to select a goal. For most local service businesses, 'Leads' or 'Website Traffic' are best. If you want to experiment without system-guided restrictions, select 'Create a campaign without a goal's guidance'.

Step 4: Select the Campaign Type

Choose Video as your campaign type.
  • Screenshot Description: You will see a grid of campaign types like Search, Display, and Video. Click the one with the YouTube icon.

Step 5: Choose Your Video Ad Subtype

For beginners, we recommend 'Efficient Reach' or 'Skippable In-Stream'.
  • Skippable In-Stream ads play before, during, or after other videos. After 5 seconds, the viewer has the option to skip. The best part? You usually only pay if they watch 30 seconds or click on the ad.

Step 6: Define Your Budget and Dates

Set your budget type to 'Daily'. For a local Australian business, starting with $10–$20 per day is a great way to test the waters without overspending.
  • Warning: Avoid 'Campaign Total' budgets unless you have a very specific short-term promotion, as it’s harder to manage daily pacing.

Step 7: Location and Language Targeting

This is where you make your budget work harder. Under 'Locations', don't just select 'Australia'.
  • Click 'Enter another location' and type in specific postcodes or cities (e.g., 'Brisbane' or 'South East Queensland').
  • Set your language to English.

Step 8: Content Exclusions (Inventory Selection)

Under 'Inventory Type', most small businesses should select 'Standard Inventory'. This ensures your ads don't show next to sensitive or inappropriate content that could harm your brand's reputation.

Step 9: Define Your Audience (Who sees the ad?)

This is the most critical step. You can target based on:
  • Demographics: Age, gender, and parental status.
  • Interests (Affinity): People who have a long-term interest in a topic.
  • In-Market: People currently searching for a specific service (e.g., 'Home Improvement' or 'New Cars').

Local Marketing Group Tip: Use 'In-Market' audiences if you want immediate sales, as these people are actively looking to buy right now.

Step 10: Select Your Keywords or Placements

If you want your ad to appear on specific YouTube videos (like a local real estate agent's video or a DIY home repair channel), use the 'Placements' tool. Alternatively, add keywords related to your business so your ad appears near relevant search results.

Step 11: Create the Ad Creative

Paste the URL of the YouTube video you uploaded in Step 1.
  • Final URL: This is where people go when they click (e.g., your landing page).
  • Call-to-Action (CTA): Choose something punchy like 'Book Now', 'Learn More', or 'Get Quote'.
  • Headline: You have 15 characters to grab attention. Make it count!

Step 12: Set Your Bid

Set your maximum CPV (Cost Per View). In the Australian market, a CPV of $0.05 to $0.15 is common. Google will often provide a 'Typical' range on the right side of the screen—aim for the lower end of that range to start.

Step 13: Review and Launch

Review all your settings. Ensure your ABN is correctly linked in your billing profile to ensure you receive proper tax invoices for GST purposes. Click Create Campaign.

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Common Mistakes to Avoid

  • Ignoring the First 5 Seconds: Since viewers can skip after 5 seconds, you must mention your brand and your value proposition immediately.
  • Targeting Too Broadly: Don't target all of Australia if you only service Brisbane. You'll waste money on clicks you can't service.
  • No Clear Call to Action: Tell the viewer exactly what to do next. "Visit our site" is okay, but "Download our price list" is better.
  • Forgetting Mobile Users: Most YouTube views happen on mobile. Ensure your video text is large enough to read on a small screen.

Troubleshooting Common Issues

  • Ad Not Running: Check if your bid is too low. If your max CPV is $0.02, Google might not find any auctions you can win. Try increasing it to $0.10.
  • Low View Rate: If people skip your ad instantly, your intro might be too 'salesy' or irrelevant to the audience. Re-evaluate your targeting.
  • Disapproved Ads: This usually happens due to copyrighted music or restricted content (like alcohol or medical claims). Ensure you have the rights to any music used.

Next Steps

Once your ad has been running for 7 days, check your 'Conversions' column to see if people are actually taking action on your website.

Need help crafting the perfect video strategy or navigating the complexities of Google Ads? Our team at Local Marketing Group specialises in helping Aussie businesses grow through digital advertising. Contact us today for a strategy session.

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