Advertising on YouTube is becoming increasingly popular due to its large potential in engaging existing and new target audiences via highly interactive video advertisements. However, YouTube is criticised for providing mostly lower value user-generated content. This leads to major concerns among marketers regarding how resources can be allocated most efficiently across channels and how effective YouTube is as an advertising channel. The purpose of this study is to evaluate existing literature exploring the effectiveness of YouTube advertising. This research contributes to academic literature by compiling a set of measures to assess advertising effectiveness and identifying factors affecting it in the context of online video advertising. In order to identify relevant criteria and frameworks for evaluating advertising effectiveness in the context of YouTube video advertising, the characteristics of social media and online video advertising were analysed and the theoretical foundations of online advertising were established.