The encoding scheme that YouTubeDrive uses is brain-dead simple: pack three bits into each pixel of a sequence of 64x36 images (I only use RGB values 0 and 255, nothing in between), and then blow up these images by a factor of 20 to make a 1280x720 video. These 20x20 colored squares are big enough to reliably survive YouTube's compression algorithm (or at least they were in 2016 -- the algorithms have probably changed since). You really do need something around that size, because I discovered that YouTube's video compression would sometimes flip the average color of a 10x10 square from 0 to 255, or vice versa.
Looking back now as a grad student, I realize that there are much cleverer approaches to this problem: a better encoding scheme (discrete Fourier/cosine/wavelet transforms) would let me pack bits in the frequency domain instead of the spatial domain, reducing the probability of bit-flip errors, and a good error-correcting code (Hamming, Reed-Solomon, etc.) would let me tolerate a few bit-flips here and there. In classic academic fashion, I'll leave it as an exercise to the reader to implement these extensions :)