Setting Up Your First Campaign
Google removed Video Action Campaigns in April 2025, auto-upgrading everything to Demand Gen. For new campaigns: select "Create a campaign without guidance," choose "Demand Gen," and set "YouTube engagements" as your goal. Before running ads, upload your video as Public, link your Google Ads account to your YouTube channel, and have at least 5–10 videos live on your channel.
Ad Formats: In-Stream vs. In-Feed
Skippable in-stream ads play before other videos and drive 3.2× more views per dollar. They cost as little as $0.001–$0.01 per view for music. In-feed ads (formerly discovery ads) appear in search results and alongside related videos — they cost more ($0.04–$0.06 per view) but deliver higher engagement including comments, likes, and subscribers.
The recommended split for musicians: 70% in-stream / 30% in-feed. Avoid non-skippable ads — they cost $0.10–$0.30 per view, which is 10–100× more expensive.
Budget Allocation
| Budget | Daily Spend | Duration | Strategy | Expected Results |
|---|---|---|---|---|
| $20–$50 | $3–$7/day | 7–10 days | 100% one country, skippable in-stream only | ~670–5,000 views |
| $50–$100 | $5–$10/day | 10–14 days | 70/30 in-stream/in-feed, test 2 ad variations | ~1,700–10,000+ views |
| $100–$250 | $7–$15/day | 14–21 days | Add in-feed, expand targeting, test 3+ variations | ~3,500–25,000+ views |
Never increase your daily budget more than 50% at once — sudden jumps confuse the algorithm's learning phase.
Targeting Strategy
Create Custom Segments using genre search terms, similar artist names, and related website URLs. Start with 50–100 placement URLs of competitor artist channels and related music YouTube channels. Go to YouTube Analytics → Audience → "Videos your audience also watches" for targeting ideas.
Disable "Optimized Targeting" — one practitioner found it lowered cost per subscriber from $0.45 to $0.31. Always enable age and gender specifications and exclude family content to avoid wasted impressions.
Measuring ROI
Track these metrics: cost per subscriber (benchmark: $0.31–$0.45 in Tier 1 markets like US/UK), earned actions (free organic views triggered by ads), and streaming platform correlation. Compare your YouTube ad dates with Spotify and Apple Music streaming spikes — this cross-platform lift is where the real ROI shows up.
Key Takeaway
Start with $20-$50 on skippable in-stream ads targeting fans of similar artists. Expect $0.001-$0.01 per view. Disable Optimized Targeting, use Custom Segments with competitor channel URLs, and measure success through cost per subscriber ($0.31-$0.45 target) plus streaming platform spikes.
Recommended Analytics Tools for Ad Campaigns
vidIQ tracks organic vs. paid view ratios so you know which ads actually convert to subscribers. Social Blade (free) monitors your growth curve during and after ad campaigns to measure real impact.
See our full tools review for complete feature breakdowns.