AI can answer questions. AI can summarize articles. AI can't replicate the experience of watching a video.
That's why video advertising — particularly YouTube — is becoming more strategically important in the AI search era.
Why Video Matters More Now
AI Overviews answer text queries. Someone searches "how to choose running shoes," AI gives them bullet points. No click needed.
AI can't replace video experiences. Product demos. Testimonials. Tutorials. Brand storytelling. These require watching, not reading.
When text-based search loses clicks, video captures attention in ways AI responses can't replicate.
The Numbers:
- • YouTube has 2.5+ billion active users
- • 70% of people have purchased after seeing a YouTube ad
- • YouTube Shorts gets 70 billion daily views
- • YouTube ad revenue: $36 billion in 2024 (up 15% YoY)
- • Video remarketing audiences engage at higher rates than display
Where Video Fits Your Strategy
Top of Funnel: Awareness
YouTube excels at reaching people before they search. When they do search later, they've already seen your brand.
Use cases: Brand introduction, category education, thought leadership
Format: Skippable in-stream ads, YouTube Shorts ads
Goal: Impressions, view rate, brand lift
Mid-Funnel: Consideration
Video builds trust that text can't. Seeing real people, real products, real results creates connection.
Use cases: Product demos (show, don't tell), customer testimonials (social proof), comparison content
Format: In-feed video ads, non-skippable ads
Goal: Video completion rate, engagement, website visits
Bottom of Funnel: Conversion
Retarget people who engaged with your video content. They're warmer than cold prospects.
Use cases: Specific product offers, limited-time promotions, direct response with clear CTAs
Format: Video remarketing, shoppable video ads
Goal: Conversions, ROAS
Video Remarketing: Your Secret Weapon
With fewer site visits to build remarketing pools, video engagement becomes an alternative data source.
Build audiences from:
- Watched any video from your channel
- Watched 25%, 50%, 75%, or completed specific videos
- Subscribed to your channel
- Liked or commented on videos
These audiences don't require website visits. YouTube tracks engagement natively.
Then retarget with:
- Search ads (RLSA for video viewers)
- Display ads
- More video ads (sequential storytelling)
- Demand Gen campaigns
YouTube Shorts: The New Opportunity
Short-form video (up to 60 seconds) is exploding. YouTube Shorts now monetizes at parity with long-form content.
Why it matters:
- • Lower production barrier (phone-quality works)
- • Cheaper CPMs than long-form
- • Reaches mobile-first audiences
- • Tests creative concepts quickly
Use for:
- Quick tips and tricks
- Product highlights
- Behind-the-scenes content
- Repurposed content from other platforms
Creative That Works in 2025
The 5-Second Rule
Skippable ads let viewers skip after 5 seconds. Your first 5 seconds determine everything.
What works:
- • Lead with the hook (problem or intrigue)
- • Show your product immediately
- • Use motion and visual interest
- • Put your brand early (in case they skip)
What doesn't work:
- • Slow build-ups
- • Text-heavy intros
- • Generic stock footage
- • Saving the point for the end
Mobile-First Format
88% of YouTube traffic is mobile. Create for phones:
- Vertical or square formats for Shorts
- Large text (readable on small screens)
- Clear visuals without fine detail
- Captions (many watch without sound)
The Bottom Line
Text-based search is getting squeezed by AI responses. Video is differentiated — AI can answer questions, but it can't show you a product demo or tell a brand story.
YouTube isn't a backup channel. In the AI search era, it's strategic infrastructure for building audiences and brand that feed your entire funnel.
This week: Audit your video presence. Do you have YouTube ads running? Are you building video engagement audiences for remarketing? If not, you're missing a channel that's becoming more valuable as text search gets harder. Consider 10-15% of budget for video awareness/consideration.
