How to Advertise on YouTube in the UK: A Small Business Guide
- 3 days ago
- 5 min read
Updated: 2 days ago
TL;DR: YouTube reaches around 94% of UK adults, and roughly 55 million people are targetable with ads. You advertise through Google Ads using Video campaigns (skippable, non-skippable, bumper and Shorts ads) or AI-driven Demand Gen campaigns, paying per view or per thousand impressions. UK costs typically run about 1p–30p per view, and a small business can start meaningfully from just £5–£10 a day.
Why YouTube is worth it for UK small businesses
Reach is the headline. Ofcom's Online Nation 2025 report found that 94% of UK adults use YouTube, and Google's own advertising data puts the UK audience you can reach with ads at roughly 55.5 million people. Very few channels get you in front of that many potential customers.
It is also no longer a phone-only platform. YouTube is now the UK's second most-watched video service, taking around 15% of all in-home video viewing (behind only the BBC), and viewing on the living-room TV set has roughly doubled since 2022. That means a well-made ad can land on the big screen, not just a small one.
The commercial appeal for a small business is simple: unlike organic posting, you only pay when someone actually watches or engages, and you can target tightly by location, age, interests and even the exact things people are searching for.
The ad formats you can run
Skippable in-stream ads play before, during or after a video and can be skipped after 5 seconds. You usually pay only when someone watches 30 seconds (or the whole ad if it's shorter) or clicks — making this the everyday workhorse format.
Non-skippable in-stream ads run up to 15 seconds and guarantee a full view; they're priced per thousand impressions (CPM). Bumper ads are 6-second, non-skippable clips, also sold on CPM — ideal for a punchy reminder.
In-feed video ads appear in search results, on the home feed and next to related videos; people choose to click, so they suit consideration. YouTube Shorts ads are vertical (9:16) clips shown between Shorts and are often cheaper. Masthead ads take over the homepage but need reserved, six-figure budgets — not one for small businesses.
Video campaigns vs Demand Gen
There are two main routes inside Google Ads. Video campaigns run on YouTube and give you control over formats and placements — pick an objective like brand awareness and reach, or video views, and you're set for top-of-funnel work.
Demand Gen campaigns replaced the old Discovery campaigns (rolled out from 2023 and fully migrated by 2024). They're AI-driven and run across YouTube's in-feed and Shorts surfaces plus Google's Discover feed and Gmail, with lookalike audiences to find new customers. They're built for clicks and conversions.
Rule of thumb: start with a Video 'reach' or 'views' campaign when you're building awareness, and move to Demand Gen once you have conversion tracking in place and want measurable leads or sales.
What it actually costs
Costs vary by format, targeting and competition, but UK benchmarks are reassuringly low. Cost-per-view typically sits between about £0.01 and £0.30, while CPM for bumper and non-skippable formats runs around £2–£10. For context, global skippable in-stream ads average roughly 2–6 cents per view with an average view rate near 32%.
You choose how you pay: CPV (per view), target CPM (per thousand impressions), or a conversion goal such as target CPA or maximise conversions. As a starting point, a local business can get useful results from £5–£10 a day, while national brands tend to spend £50–£100+ a day. Whatever you set, leave the campaign about a week to 'learn' before you judge it.
A simple 6-step setup
1. Create a Google Ads account and link your YouTube channel, then upload your video to YouTube (it can be public or unlisted).
2. Choose your goal — awareness and reach for a new brand, or sales and leads once conversion tracking is live.
3. Pick a campaign type — Video for control over formats and placements, Demand Gen for AI-optimised conversions.
4. Set your targeting — location (the whole UK or just your area), age, interests, custom segments (people searching your keywords) and remarketing to past website visitors or channel viewers.
5. Set budget and bid — start at £5–£10 a day, choose CPV or target CPM, and give it around a week to optimise.
6. Add your creative — hook viewers in the first 5 seconds (before the skip button appears), show your brand early, design for sound-off with captions, and finish with one clear call to action and link.
A quick word on the rules
YouTube ads in the UK fall under the ASA and CAP Code: they must be legal, decent, honest and truthful, must not mislead, and must be clearly identifiable as advertising. Age-restricted categories — alcohol, gambling and HFSS (high fat, salt and sugar) food and drink — carry extra targeting and content restrictions, so check the rules before you promote them.
Quick FAQ
How much do YouTube ads cost in the UK?
Typically around 1p–30p per view (CPV), or roughly £2–£10 per thousand impressions (CPM) for bumper and non-skippable formats. There's no fixed minimum — a small business can run a meaningful test from £5–£10 a day.
Do I need my own YouTube channel to advertise?
Yes. You host the ad video on a YouTube channel (public or unlisted) and link that channel to your Google Ads account. You don't need a large subscriber base to run ads.
What's the difference between a Video campaign and Demand Gen?
Video campaigns run on YouTube and give you control over formats and placements — ideal for awareness. Demand Gen is AI-driven, spans YouTube feeds and Shorts plus Discover and Gmail, and is built for clicks and conversions once tracking is set up.
How long should a YouTube ad be?
For skippable in-stream, 15–30 seconds usually works best; bumpers are 6 seconds and non-skippable up to 15. Whatever the length, land your hook and brand in the first five seconds.
Most small businesses assume YouTube is only for big brands with TV budgets. It isn't. With tight targeting and a simple 15-second video, £10 a day can put you in front of the exact customers you want — on the one screen where they're actually paying attention. — Daniel Nikolla, Founder of Merx Marketing
The takeaway: YouTube isn't just for big-budget brands. With pay-per-view pricing and precise targeting, even a £5–£10 daily budget can reach UK customers on both mobile and the living-room TV.
Have you tried advertising on YouTube yet — and if not, what's holding you back: the video, the budget, or knowing where to start?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
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