The short answer
Yes, one tier up, and the video has to live on YouTube first
Yes, video ads sit one tier up from Starter, and they run alongside your display placements rather than replacing them. Your listing keeps showing up on the news and sport sites you're already used to, and video gets added on top. The one hard requirement is where the file lives: it has to be hosted on YouTube before Hugo can turn it into an ad. Videographers usually hand over a link hosted somewhere else, so that's the first thing to check before you buy up a tier.
Which package includes video ads
Video ads aren't part of the entry-level Starter listingpackage. Starter runs display only, the kind of placements that show your listing on the news and sport sites people are already reading. Video shows up one tier above that, and when it does, it doesn't replace anything, it adds to it. Your listing keeps running as display everywhere it already was, and video gets layered on top of that same package. If you bought Starter and assumed video simply wasn't offered at all, that's the part to unlearn: it's there, just one step up in Showcase.
Where your video actually has to live
YouTube hosting is the one hard requirement, and it's the part that trips up most agents, not the cost of moving up a tier. Hugo builds a video ad off a YouTube link, so before anything can run, the file needs to exist on YouTube. The problem is that the link a videographer hands over after a shoot is very often hosted somewhere else entirely, and that link can't be turned into an ad as-is. The fix is simple: take the file and put it on your own YouTube channel. If you don't have one, make one. It's a short setup job, not a project, and once it's done it unlocks every video ad you run after this one, not just the current listing.
The video-only option if you don't want to move up a tier
Ask for it, since it isn't listed as a standard option. An agent who wants video but doesn't want to step up from Starter can ask to have the Starter package built as video only instead of display. That trades away the display placements on news and sport sites and puts the whole budget into YouTube video instead. It's worth asking about if video matters more to you than the display spread, but it is a trade, not an add-on: you get video in place of display, not both, unless you move up to the tier that includes both.
Does the Starter listing package include video ads?
No, Starter is display only. Video ads open up at the next tier, Showcase, and they run in addition to the display placements Starter already gives you, not instead of them. An agent who bought Starter and loved it hasn't hit a ceiling, just a different tier.
Does a listing video have to be hosted on YouTube to run as an ad?
Yes, YouTube hosting is the requirement, full stop. Hugo builds video ads off a YouTube link, so the video needs to live there before anything else can happen. A videographer's handoff link is often hosted on a different service, which is the single most common reason agents think video isn't available to them when it actually is. Put the file on YouTube first.
What if I don't have a YouTube channel for my listings?
Make one, it takes a few minutes. A Compass agent doesn't need a channel with history or subscribers, just a place to host the file so it has a YouTube link. Once that link exists, it unlocks every video ad after this one too, not just the current listing.