YouTube is delivering ads from their own domain, so if you blacklisted that address, the whole YouTube will be blocked. Using an adblock extension like uBlock is the best option.
Also see
Update 2020-10-24
It's not likely that you'll be able to block in-video ads with Pi-hole. For that, you'll need something like uBlock origin for desktop, or vanced for android (Now defunct),
This thread has been closed as there is not much more discussion to be had around the topic.
Update 2018-11-14
User's have had good success here:
I'm updating this top-level post as of 2018-10-16 since a lot of people land here.
Blocking ads on YouTube is hit or miss with Pi-hole. The reason for th…
And
Hey, new to PiHole here and really loving it. One problem though -- there's about a 10ish-second delay at the beginning of every Youtube video, but only in Chrome. I think it has to do with the way Chrome renders pages, but I'm not sure.
When I click on a video and the video page loads up, the actual video portion is black except for the controls (which don't do anything because there's no video to play). Then, about 10 seconds later, a little grey box with a frowning file icon will appear wher…
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