How Much Does YouTube Advertising Cost?

YouTube has grown to be a popular platform for many people’s shooting process. 68% of YouTube users watch video tutorials and product reviews to gain relevant information before making a purchase. Thus, you should promote your products and advertise on that channel to attract high-quality leads. SEO services can always help you to do that easily.

With over 2.3 billion monthly active users, YouTube is the second largest search engine after Google, its parent company. YouTube Ads help you to access the Google Ads network’s hyper-targeting features. Google stores information regarding YouTube user activities to display more relevant ads to users.

Moreover, YouTube ads tend to be cheaper than Google PPC ads. Now, you may be wondering how much you need to invest in YouTube advertising. Well, there is as such no fixed YouTube advertising cost.

Youtube ads cost

However, an advertiser should not pay more than $2.00 for every 1,000 impressions of its advertisement. YouTube Cost Per View(CPV) ranges from $0.010 to $0.030, i.e., $10 to $30 per 1000 views, which takes an average of $2000.

The real YouTube pricing differs in businesses and campaigns depending on various factors. This post outlines why you should choose YouTube to promote your business, how much YouTube ads cost, the types of YouTube ads, and how to use your budget so you can estimate the price you need to pay for the ads.

Let’s dive in!

Why Use YouTube to Promote Your Business?

Before investing in YouTube ads for brand promotion, you need to know the key reasons for using that platform. Millions of people watch over 1 billion hours of content every day. As a huge number of users spend hours on YouTube, it is undoubtedly one of the best channels for you to promote your products/services.

Here are the key features that make YouTube an ideal video advertising platform:

Massive Reach

YouTube is an extremely popular social media platform and a search engine, which reaches a wide variety of internet users worldwide. You can promote YouTube videos and channels for free to reach a maximum number of target customers. Most of the other advertising platforms don’t have such a huge reach and offer broad diversity.

YouTube is the right platform to deliver your message to a maximum number of target customers.

Influence Purchasing Behavior

YouTube has a significant impact on the customers’ purchasing behavior. According to the reports, 66% of beauty product buyers, 62% of smartphone buyers, and 72% of auto-vehicle buyers revealed that YouTube impacted their purchasing decisions.

One of the best things about YouTube is that it helps customers visualize how products suit their lifestyles. Your content directly influences customers’ buying decisions.

Share Story to Right People at the Right Time

To win over a maximum number of target customers, you need to show the right message to the right people at the right time. When you create enriching content for a target audience, analytics and targeting features help you share stories with the right people at the right time.

Factors to Consider When Determining YouTube Ads Cost

If you ask YouTube advertising experts about the YouTube advertising costs, they will give your different replies.

So, you need to consider the factors below to determine your YouTube ads cost:

Business Goals

Before starting with your YouTube advertising campaign, you should ask yourself about the business goals that you want to achieve.

Some of the common advertising goals are:

  • Build brand awareness
  • Widen customer outreach
  • Boost sales
  • Drive traffic to your website
  • Generate leads
  • Increase conversions
  • Easily discover your products and services with videos

You can also build a campaign without guidance on goals. As this is an advanced setting, campaign customization professionals, like a YouTube video marketing company, can manage it well.

YouTube advertising costs

Your business goals determine the available options for you regarding the top two YouTube ad cost variables, such as advertisement type and bidding strategy.

Budget

You can start with a single-day budget of $10 for local advertising campaigns.  Multiply this budget by the total number of days you want to run the campaign. So, you need to spend at least two weeks gaining traction before making any changes.

You can start your advertising campaign with a certain amount and it will keep on changing depending on the traffic fluctuations, as the total number of views. Thus, your YouTube ad cost can be more/less than your budget on some days.

Targeting Strategies

Strategic targeting helps you to reach the right people. A higher impression volume doesn’t ensure you will achieve your business goals, such as product/service consideration and conversion.

Impressions refer to the total number of times your ad gets displayed. Choose only the demographics, which apply to your target customers as that helps to maximize the YouTube ad cost.

People who match your buyer persona and those who intend to buy your products/services get to see your ads. When customizing targeting options, make sure they fall in any of the three categories below:

  • Audience
    It identifies whom you want to reach
  • Content
    It determines the placement of your ad display
  • Location
    It is assembled by geographic locations (such as US, countries, territories, and custom location)

You can earn a high ROI through your YouTube ads cost per view focusing on adding certain important to your targeting mix. Views are quite a better metric than impressions as they tell you the total number of your ad views.  

Ad Type

You need to know the type of YouTube ad when estimating its cost. Make sure you find which type and price combination of YouTube ads can work the best for your brand promotion.

Bidding Type

You should spend every single penny smartly when investing in YouTube ads. Thus, you should understand how bidding works on that platform. As an advertiser, you should bid for certain keywords.

Google Ads displays your ad to searchers for a specific keyword depending on other targeting features, like location. However, Google displays the ad of the highest bidder if other brands bid for the exact keywords. You can bid on YouTube in many other different ways. You should choose the option, which maximizes the YouTube ad cost.

Here are the primary options:

YouTube Advertising Cost Per View (CPV)

When you choose YouTube CPV, you pay when a person views/interacts with your ads. You get a view when someone watches 30 seconds or the full video ad (when it’s less than 30 seconds) or clicks on a CTA overlay, companion banner, and card.

Cost Per Action (CPA)

CPA refers to the amount of money you make when someone clicks on your YouTube ad and takes the desired action, such as filling out a form and buying a product. The average price of YouTube ads in CPA is $0.10 to $0.30.

Cost Per Thousand Impressions(CPM)

You can fix the maximum amount you want to pay for your ad to get displayed 1000 times on the YouTube platform.

Different Types of YouTube Video Ads and Their Cost

Here are the five types of ad and the YouTube video ads cost for each that you should know:

  1. Video Discovery Ads

    Your video ad’s thumbnail image with text gets displayed to a relevant video, the YouTube mobile homepage, or YouTube search results page.

    YouTube ad pricing: CPV
YouTube Video Ads
  1. Bumper Ads

    Bumper ads last for six seconds. They are non-skippable and are shown before, with, or after other videos.

    YouTube ads pricing: CPM
  2. Outstream Ads

    Out stream ads are less intrusive as they start playing with no sound, and users can mute the videos any time.

    YouTube ads metric cost: CPM
  3. Skippable In-stream Ads

    Skippable in-stream ads are those which roll before, with, or after videos. Viewers get the option to skip the ad after watching for five seconds.

    YouTube ad pricing: CPA, CPM, CPV
  4. Non-skippable In-Stream Video Ads

    Non-skippable in-stream video ads play before, during, or after other videos. They run for 15 seconds and don’t provide people the option of skipping.

    YouTube ads pricing: CPM

How do YouTube Ads work?

Google keeps on upgrading the ways brands connect with people, mainly via mobile devices, where many YouTube views occur. One of the significant upgrades was helping advertisers to reach viewers depending on their Google search history.

You can target internet users depending on what they have searched for recently. If your video closely matches what viewers search for, they tend to watch your full ad or click on it to visit your website. You will have to pay when a user watches your ad.

Like many brands, you can start a YouTube ad campaign with a minimum of $10/day to perform local campaigns. Then, you can modify your budget every day depending on the range of target customers you want to reach.

YouTube Ads Targeting Options

Here are some of the targeting options for YouTube ads:

Interests

Are you aware of your target audience’s interests and habits? If you know, you can choose the audience to whom you want to show your ad content depending on their interests and preferences.

Keywords

Pick relevant search terms to a YouTube video or channel, that your target audience may be interested in. The addition of negative keywords helps you in displaying ads only on relevant videos.

It’s quite less expensive to target keywords on YouTube than Google Ads.

Demographics

People worldwide watch content on YouTube. If you want to target every single viewer, please don’t do that.

You should show your ads only to those people who intend to do business with your brand. Thus, you should shortlist YouTube users depending on demographics, such as gender, age, and income.

In-Market Audience

Google can tell when users look for products similar to those offered by your brand and are willing to buy them. Ensure you target in-market audiences to fans people who tend to buy products from your brand.

Placements

You can select YouTube channels or videos where you want to promote your brand and offerings. For instance, if you sell sports accessories, you can run your advertisement on eSports channels.

Video Remarketing

Video remarketing is a strategy to reach customers who are already in touch with your business. You can decide to display ads to those people who have already watched your ads and videos.

Life Events

Many people undergo huge changes in their lives and they start prioritizing things in which they had no interest before. For instance, motherhood can drastically change the needs and priorities of a person. You can show YouTube ads for baby products only to new mothers.

How to Leverage Your YouTube Ad Budget

As a business owner, entrepreneur, or marketer, you must be knowledgeable by now about how to reply when someone asks you, “How much does it cost to advertise on YouTube?”

By now, you are also aware that YouTube ad costs vary. So, how do you know when you should increase or decrease YouTube ads prices per view? How should you make the most of your YouTube ad cost so you don’t end up wasting money?

Find answers to these questions below:

Acquire Primary Knowledge

When you set up a YouTube ad campaign, you should have some knowledge on how the components are linked, from the objectives to bidding strategies to price and targeting options.  

You need to practice further to implement the most appropriate strategy for every business goal. It works well for those who have less time and money to hire a video ad marketing agency rather than losing money experimenting on YouTube ad campaigns.

Optimize YouTube Ad Campaign

Never think that YouTube ads have nothing to do with your entire SEO efforts. YouTube ad campaign optimization exposes you to risks related to social media video ads.

If your YouTube ad performs poorly, you get the chance to optimize for YouTube cost per view/view rate. Let’s say, you can tweak your ad creative, like editing your title /end credits and adding/removing CTA, to increase the view rate.

Make High-Quality Videos

If you wish for maximum YouTube ads COV results, you must display high-quality video content, which intrigues viewers to watch the full video. This is the time when a YouTube advertising agency offering high-quality video services can be of great help.

The video marketing experts can help you in making professional-looking and enthralling video ads and then launch the ads at the right time.

Hire Experts to Manage Ad Pricing

When you decide to associate with a YouTube video marketing company, you get to consider the opportunity cost. If you run a startup or SME with a less advertising budget and much less marketing expertise, you should think about hiring a proficient team to manage YouTube ad pricing and video making to earn huge profits in the long run.

The Bottom Line

If you are genuinely planning to run a YouTube ad campaign, you tend to think at first about the price you need to pay for it. YouTube advertising is not that expensive and much more effective than PPC marketing. The advertising cost depends on your strategies.

To make things easy, you can always get in touch with a YouTube video marketing company. Besides the costs mentioned above in this post, you may need to pay monthly or upfront fees to create a strong base for YouTube advertising efforts.

As time passes by, your YouTube ad campaigns pay for themselves, while you earn high profits. You only need to find an associate with an excellent track record based on campaign outcomes and customer relationships.

You can always find an agency that offers data-driven and customized YouTube advertising strategies to brands from different industries and niches. The experts follow a unified approach in their digital marketing strategies to make sure everything works perfectly.

With the integration of complementary services, such as social media advertising (including YouTube advertising), social media management, video production, and brand management, they save your money yet boost the ROI.

Ready to Roll?

Learning about how YouTube ads work and costing is just the first step. To get the most out of your video ad campaign, it’s important to hire an expert video marketing agency! Don’t wait…get in touch with us now.

Also Read –

5af32a6e9130ed6c6cb61086362d0f20?s=250&d=mm&r=g

Related Posts

Have you ever thought about how Google Ads decides the...
By Navneet Kaushal 62741 reads
A year after launching the Keyword Planner, Google made the...
By Navneet Kaushal 391 reads
TO TOP