Under the monetization tab of your uploaded video, you will see that there are a few different ads that can be displayed on your page. These ads behave differently, and you may have a preference for which type of ads you want to select. I personally like to have both overlay in-video ads and true-view in stream ads selected, although my opinion has been evolving over time. First lets talk about what the different ad types are:
Overlay in-video ads: These are the little banner ads that pop on the screen about 10 seconds into a youtube video that you x-out so that you can see the whole screen. Why might you like them? Advertisers will pay good money if someone clicks on one of these ads while watching your video, and this type of ad seems to be less annoying to viewers than the other ad types. The downside of this ad type is that people don't click on them very often.
True View in-stream ads: These are the little commercials that pop up before a video plays. Usually, they have an option to "skip ad" after a few seconds. If a person chooses to simply let the ad play, it counts as if they had clicked on the ad. You get paid for this. The "click through rate" or ratio of people clicking on True View ads is much higher than banner ads; usually about 5 times higher. However, while you will get more "clicks" from this type of ad, the clicks are worth less than banner ad clicks.
If you select both types of ads for your video, Google will decide which ad type will be more likely to yield revenue from each individual that views your video. They track viewers and decide whether they are more likely to be influenced by in stream ads or banner ads. This is why I personally like to have both ad types selected.
If you have a really short video (some of mine are 6 seconds) there starts to be some issues with the ads. Banner ads usually pop up after 6 seconds, so a viewer won't be exposed to the ad unless they rewatch your video (most people don't do this while surfing). Further, I haven't every seen True View ads used on my short videos. It may be that part of google's decision engine takes video length into account, or it may be just a coincidence. In any case, I highly recommend making your videos longer so that you don't have any problems. If it is a short clip, consider using windows movie maker to add a replay of your video (maybe slow motion?) to your clip so that it is longer.
True steam ads are only if the video is longer than 30 seconds and you can have more than 1 if it is more than ten mins long
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