Many customers now use YouTube as a crucial component of their purchasing experience. 68 percent of YouTube visitors search the site for useful information before making a purchase decision, from product reviews and lessons to shopping haul and unboxing videos. There has never been a better time for brands and companies to promote their goods and services and gather channel leads with high-intent.
Due to the following key factors, using YouTube paid promotion into your digital strategy can maximise investment returns:
- YouTube, the parent corporation of Google, is the second-largest search engine with 2 billion monthly active users.
- Because YouTube Ads is a part of the Google Ads network, you can use its hyper-targeting tools. Additionally, Google feeds YouTube data on user activity so that users can see more pertinent adverts. For instance, if someone searched for “healthy quarantine meals” and then went to YouTube to watch a movie, they might see adverts for such products there.
- YouTube pay-per-click (PPC) ads are typically less expensive than Google PPC ads.
All of this is fantastic, but you might be curious about the price of YouTube advertising. Although there is no set price for YouTube commercials, the following are some broad averages:
- The cost per view (CPV) on YouTube may be between $0.010 and $0.030. It costs on average $2,000 to reach 100,000 views, or $10 to $30 per 1,000 views.
The cost-per-thousand-impressions (CPM) of $2 is a good middle.
Actual YouTube pricing would vary depending on a number of things from business to business and even campaign to campaign. We’ll look into the elements influencing YouTube ad price in this article. Don’t miss a beat because the information provided here will assist you in determining how to maximise your advertising budget. Our main concern:
- How Much Do YouTube Ads Cost: 5 Things To Take Into Account
- 5 Ad Types You Should Be Aware Of, Along With How Much Each YouTube Video Ad Costs
- Maximizing Your YouTube Advertising Budget
- Setting Up Your Video Ads To Run
The Cost Of YouTube Ads: Five Things To Take Into Account
If you ask five YouTube advertising experts how much it costs to promote on YouTube, you might get five different replies. This is so because various factors determine the final rate for YouTube advertising. Let’s examine the five elements that determine YouTube ad costs:
1. Your Objective
How much do YouTube advertisements cost? is the question that needs answering. What specific business goal do you hope to achieve with this campaign, you must first inquire? Choose one of the predefined alternatives from Google Ads to respond:
- Increase sales
- Produce leads and sales conversions
- Drive visitors to your website
- Promote the discovery of goods or services – excellent with video!
- Increase awareness and reach
The option to “Create a campaign without a goal’s guidance” is also available, but this is an advanced setting that is best handled by campaign modification specialists, such a YouTube video marketing agency.
Why spend the effort doing this right? Your objective will define the alternatives you have in relation to the two major cost factors for YouTube ads: ad type and bidding technique.
2. You’re Budget
For local initiatives, a daily budget of $10 is a decent place to start. Divide this sum by the number of days you want your campaign to run. Before making any adjustments, experts advise giving it at least two weeks to acquire traction.
Let’s assume that you are a beginner and that you would like to start with the most basic YouTube ads cost. How much is current YouTube advertising cost?
$10 multiplied by 14 days (two weeks) equals $140.
The overall budget for your campaign in this example is $140. Keep in mind that this sum will be distributed equally over the course of your campaign to allow for variations in traffic (e.g., how many views your ad is getting). Therefore, the cost of YouTube advertisements may occasionally exceed or fall short of your budget, but it will gradually average out. Additionally, you will only be charged $140 at the conclusion of your campaign, even if your total views or impressions exceed what your budget permits.
3. Useful Targeting Techniques
We are now entering the fun phase. Going too wide or too narrow will prevent you from reaching the correct audience, which is why strategic targeting is important. Take a look at the possibilities for demographic targeting in the picture below.
A higher impression volume (e.g., 1.5 billion impressions) is obtained when all boxes are checked, but this does not imply that your business goal—whether it be more product or service consideration or conversion—will be achieved. Impressions are the total number of times that your advertisement is shown. Furthermore, don’t you believe that setting a goal of 1.5 billion impressions for a local campaign is overly ambitious?
To maximise the cost of YouTube ads, choose just the demographics that apply to your potential clients, as shown in the image. People that suit your buyer persona, or those most likely to purchase your product or service, will see your adverts. When designing your targeting choices, which can be divided into one of three groups, keep this in mind.
- Grouped geographically by location
United States, all nations and territories, and a specific location
- Audience – Determines your target audience.
demographics, particular demographics (such as information on a person’s level of education and if they are homeowners), interests, and video retargeting
- Content: Controls where your advertisement will display.
Placement (you can select which YouTube channels, subjects, keywords, and devices will display your advertisement on)
If you concentrate on incorporating a few essential elements in your targeting mix, you can maximise the effectiveness of your YouTube advertisements cost per view. Additionally, because views show you how many times your advertisement has been watched, they are a much better indicator than impressions.
4. What Type of Ad Is Right?
When asked “How much does it cost to promote on YouTube,” this is one of the most important things to take into account. In the section below titled “5 Ad Types You Should Know and the YouTube Video Ads Cost for Each,” you may learn which form and price of YouTube advertisements are most effective for promoting your brand.
5. Choosing The Right Bidding Type
Every dollar you spend on YouTube advertisements matters. You must therefore comprehend how the platform’s bidding process operates. The advertiser typically sets bids for particular keywords. Google Ads will show your ad to a searcher for a specific keyword after taking other targeting factors, such as location, into account. Google will, however, show the advertisement of the highest bidder if multiple businesses are bidding for the same keyword.
On YouTube, there are various ways to bid. The tricky part is deciding on one that optimises the price of YouTube promotion. Basics are as follows:
- YouTube Cost per View (CPV) Advertising: With YouTube cost per view, you only pay when someone sees or engages with your advertisements. When a viewer views your video ad for 30 seconds or more (if it is longer than 30 seconds), or clicks on a call-to-action (CTA) overlay, card, or companion banner, that action is counted as a view (Source: Google, 2021).
- Cost per Thousand Impressions (CPM): You can specify the greatest price you’re ready to pay to have your ad displayed on the platform 1,000 times.
- Cost per Activity (CPA): This is the fee you pay when a person clicks on your advertisement and completes a desired action, such making a purchase or completing a form. Similar to CPV, YouTube ad prices range from $0.10 to $0.30 on average.
Five Ad Types You Should Be Aware Of, Along With How Much Each YouTube Video Ad Costs
1. Ads you may skip in-stream
These are the commercials that play prior to, during, or following other videos. Viewers have the opportunity to skip the advertisement after five seconds.
Pricing for YouTube ads: CPA, CPM, and CPV
2. In-Stream Video Ads That Cannot Be Skippable
These advertisements also appear before, during, or after other videos, however they only last for 15 seconds without giving viewers the chance to avoid them.
Pricing for YouTube ads: CPM