Commonly there are two steps:
Download a video from YouTube
It's very easy. There are many methods for you to choose from,
and the easiest way is to use this website:
http://all2convert.com/download-video-youtube.html
You can take any video formats you want from YouTube.
Then embed the YouTube video to your PowerPoint.
With Acoolsoft PPT2YouTube, You only need to import your PowerPoint files and click start. A wonderful YouTube video clip will be created with animations, transitions, and audio tracks retained.
Embed YouTube video into PowerPoint
Tips:
Always put the movie in the same folder as your PowerPoint presentation. If you later move the PowerPoint presentation to another computer, copy the movie too. Keeping your movie in the same folder as your presentation ensures the link will still work. However, you should always test the movie on a new machine just to be certain. Re-insert the movie, if necessary.
Click Insert and Movie and then browse your target folder to import the downloaded video.

Click Movie from File

Now choose the video which you want to embed into your PowerPoint

Notice: The movie files that can be embeded into PowerPoint must be asf, avi, mpeg, or wmv. So make sure you have taken the right video format during the first step.

2. Click the video you want to use and then click OK.
Recommend choosing Automatically even if you want the movie to play when clicked – I'll talk about how to set this part too. (If you choose When Clicked you have to click the black box to start the movie. Because I don’t like to show the black box on the slide, I do this a little differently.
4. Right-click the movie object (the small rectangle) and on the shortcut menu, click Edit Movie Object.

Test this now to see how it works by starting the slide show. (On the Slide Show menu, click View Show.) Advance to the slide with the movie, (best if you have the title of the movie on it). Within a couple of seconds, the movie starts to play full screen. When the movie finishes, you return to the same slide (but no unsightly box appears). Click to advance to your next slide.

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