Are you wondering how to use YouTube ads to grow your channel without wasting money? You're not alone. Most creators burn through their budget with zero results because they don't understand the strategic approach needed for YouTube advertising success.

I'm Brad Smith, owner of Automation Links, and I've been doing marketing for the last 10 years, working with over 2,500 brands. Today I'm going to break down exactly how we took a channel from basically just a few hundred subscribers to thousands of subscribers using a proven YouTube ad strategy.

Can YouTube ads actually help grow my channel or are they a waste of money?

Yes, YouTube ads absolutely work when done correctly. Here's proof: I have a client in the financial space who spends about $1,700 a month on YouTube ads. Just last month he got seven new leads and customers from this and he's getting a 9x ROAS (return on ad spend).

But here's the key - most people set up YouTube ads completely wrong. A lot of people set up an ad and just say "click on my thing and buy." No one likes you, no one trusts you yet. You got to build a relationship, you got to get the follower, you got to get the subscriber for YouTube. Then when they're ready to buy, they'll purchase from you.

What's the best YouTube advertising strategy for getting more subscribers?

The best strategy is what I call the three-funnel system that focuses on building relationships through frequency:

The 50/30/20 Budget Allocation Strategy

Top of Funnel (50% of budget): Focus on video views

• Gets more of your ideal audience to watch your video
• Gets more people to subscribe
• Gets them on your pixel for retargeting

Middle of Funnel (30% of budget): Focus on subscriptions and engagement

• Get people to comment
• Get people to click on links
• Get people to subscribe

Bottom of Funnel (20% of budget): Focus on drive conversions

• This is where you can actually say "click the thing, go get the thing"

How much should I spend on YouTube ads to grow my channel effectively?

Based on my client case study, $1,700 per month is a good starting point for serious channel growth. Here's what that budget generated:

• 280 subscribers per month
• 20,000 video views (more important than subscriber count)
• 7 new leads/customers
• 9x return on ad spend

Remember, 20,000 video views is more important than the subscriber count. Even if somebody doesn't subscribe to your YouTube video, they're in your pixel and they're going to start seeing your retargeting. Out of 20,000 people, you can retarget them with your 30% budget and 20% budget allocation.

How long does it take to see results from YouTube advertising campaigns?

You need to wait at least three months to see the full compounding effect. Here's the timeline:

Three-Month Growth Projections

Month 1:

• Show videos to 200,000 people
• Get 1,400 clicks
• Get potentially 4 leads or sales
• About 280 subscribers
• $1,700 ad spend

Month 2:

• Everyone from month one sees you again
• Double your clicks
• Get a few more subscribers
• Get more leads because now they've seen you 2-3 times

Month 3 (Where the magic happens):

• Everyone from month one trusts you or they don't like you yet
• If they trust you and they're ready to buy, they're going to start buying
• You're going to double your conversions

The key insight: Everyone from month one will start buying in month three. That's why frequency matters so much.

What's the difference between YouTube ads for views vs ads for subscribers?

This comes back to the three-funnel approach:

Video Views Campaigns (Top of Funnel - 50% budget):

• Primary goal: Get people to watch your content
• Gets them into your pixel for retargeting
• Builds initial awareness and interest

Subscription Campaigns (Middle of Funnel - 30% budget):

• Primary goal: Turn viewers into subscribers
• Focus on engagement and relationship building
• Gets people commenting and interacting

Conversion Campaigns (Bottom of Funnel - 20% budget):

• Primary goal: Turn subscribers into customers
• Only use after building trust through the other funnels
• Direct call-to-action for your product/service

Should I use skippable ads or in-feed ads to promote my YouTube channel?

Always use in-feed ads only. Here's why:

Turn off skippable in-stream ads and short ads - you only want to be in-feed ads. In-feed ads are the ones that are going to be recommended and helpful, showing on the side when somebody watches someone else's video.

We don't want to be the one that says "hey, you have to watch my video before you watch your favorite streamer." We want to show it on the side as a recommended video where they can click and sign up or they can watch. That's really the key.

What's the best way to target audiences for YouTube channel growth ads?

Target your competitors' audiences strategically:

1. Show your video to anyone that watches your competitors' videos
2. Target anyone that's been to your competitors' websites
3. Target anyone that has searched for your topic

For example, if somebody's looking for fitness and nutrition tips, you want to go to other fitness and nutrition YouTube channels and show your ad to them. You want to go to Google and say, "if anyone searched for this in the past or in the future, show my video to them."

Use ChatGPT for keyword research: Ask "what are all the keywords people are typing into Google or YouTube to find this?" Then add those keywords to your targeting.

How do I set up YouTube ads that build relationships instead of just getting clicks?

The secret is frequency and helpful content:

The 24-Touch Frequency Rule

You got to show your ad 24 times on three different channels before somebody's ready to buy. Back in the day it was seven times, now it's 24 times.

Here's how to achieve this:

• Show them at least 8 different organic posts or ads on each platform
• Follow up with emails by building relationships
• They need to see you 21 times over those three months
• Show your videos 8 times on YouTube
• Reach 75% of those people if you set this up right

Content Strategy for Relationship Building

Your YouTube video can't be all sales - they have to be helpful, organic content. This should be your normal YouTube videos - educational, helpful, teachable content.

What makes content helpful:

• Educational content
• Teaching someone something
• Being the professor, being the educator
• Helping solve real problems

In return, they're going to learn from you and get into your ecosystem, into your pixel, and you can start retargeting them with more strategic videos.

What budget allocation works best for YouTube ads - how much for each campaign type?

Use the 50/30/20 rule I mentioned earlier:

50% Top of Funnel (Video Views):

• Focus: Get ideal audience to watch videos
• Goal: Build awareness and pixel audience
• Campaign type: Video views

30% Middle of Funnel (Engagement):

• Focus: Subscriptions and engagement
• Goal: Build relationships and trust
• Campaign type: Subscriptions and engagement

20% Bottom of Funnel (Conversions):

• Focus: Drive actual sales/leads
• Goal: Convert warm audience to customers
• Campaign type: Drive conversions

Step-by-Step YouTube Ads Setup (Technical Implementation)

Before You Start:

1. Create educational YouTube content - at least one helpful video per week
2. Set up Google Ads account and connect your YouTube channel
3. Connect Google Tag Manager and make sure Google Analytics is set up
4. Sync everything with your website so you can start retargeting

Campaign Setup Process:

Step 1: In Google Ads, click "create campaign" → "create a campaign without guidance"

Step 2: Choose "video campaign" that shows on YouTube and other networks

Step 3: Select campaign type based on funnel:

• Top of funnel: "Video views"
• Middle of funnel: "Subscriptions and engagement"
• Bottom of funnel: "Drive conversions"

Step 4: Critical setting - Turn off skippable in-stream ads and short ads. Only use in-feed ads.

Step 5: Set daily budget based on your 50/30/20 allocation

Step 6: Target location and language settings

Advanced Targeting Setup:

Audience Building Strategy:

• Target anyone who watches competitors' videos
• Target visitors to competitors' websites
• Target people who searched for your keywords
• Use ChatGPT to find all relevant keywords

URL Setup Secret:

Don't send people to your website yet - they don't like you or trust you. Instead:

1. Go to your YouTube channel and copy the link
2. Google "YouTube subscribe link generator"
3. Paste your channel link
4. Generate the subscribe link
5. Use this as your final URL

This forces people to subscribe when they click your ad - increasing your subscriber rate significantly.

Ad Copy and Creative:

Don't use ChatGPT for generic copy. Instead, use professional copywriting software or give the tool your video transcription to write perfectly matched ad copy.

Content Requirements:

• Use your existing educational YouTube videos
• Focus on helpful, teaching content
• No pure sales pitches in top/middle funnel
• Educational value that builds trust

Advanced Retargeting Strategy

Build a compounding effect system:

1. Collect everyone that visits your website, watches your YouTube videos, and engages with your content
2. Cross-platform retargeting: Take everyone from Meta, TikTok, Google, Twitter, or LinkedIn and add them to your Google Pixel
3. Multi-touch sequences: Show them different content across multiple touchpoints
4. Email integration: Follow up with email sequences that build relationships

The result: Anyone that came from any platform becomes part of your YouTube retargeting audience, creating a compounding growth effect.

Measuring Success and Optimization

Key Metrics to Track:

• Video views (more important than subscribers initially)
• Subscriber growth rate
• Cost per subscriber
• Return on ad spend (ROAS)
• Lead generation from ads

Success Timeline Expectations:

• Month 1: Foundation building, initial subscribers
• Month 2: Increased engagement from repeat exposure
• Month 3: Conversion acceleration as trust builds

Cost Benchmarks:

• $0.01 to $0.04 cost per view
• 280 subscribers per $1,700 spend
• 9x ROAS achievable with proper setup

Common Mistakes That Waste Money

1. Sending ad traffic directly to sales pages - they don't trust you yet
2. Using only skippable pre-roll ads - these interrupt and annoy
3. Not having a retargeting strategy - missing the compounding effect
4. Impatient with timeline - giving up before month 3
5. Wrong budget allocation - spending too much on bottom funnel too early
6. Poor content strategy - making sales videos instead of helpful content

Tools and Resources Mentioned

Required Setup:

• Google Ads account
• YouTube channel connection
• Google Tag Manager
• Google Analytics
• Website pixel integration

Helpful Tools:

• YouTube subscribe link generator
• Professional copywriting software (not ChatGPT)
• ChatGPT for keyword research
• Video transcription tools for ad copy
  

Conclusion: Why This Strategy Works

YouTube ads work for channel growth when you focus on building relationships through frequency rather than immediate conversions. The key insights:

1. Patience pays off - Month 3 is where conversions accelerate
2. Frequency matters - 24 touchpoints across 3 months builds trust
3. Education beats sales - Helpful content creates loyal subscribers
4. Retargeting multiplies results - Cross-platform pixel building compounds growth
5. Budget allocation is critical - 50/30/20 rule prevents waste

Remember: You're not just buying subscribers, you're building an audience that trusts you enough to become customers. That's the difference between YouTube ads that waste money and YouTube ads that grow profitable businesses.

The system works for any business - the key is following the three-month compounding strategy and focusing on relationship building over immediate sales.