In this blog, you’ll understand how much YouTube ads cost and the factors associated with the cost of YouTube ads.
YouTube is the world’s second most popular search engine. There are about 2.4 billion active users of YouTube and about 1 billion monthly viewers. It’s no secret that YouTube is an amazing advertising platform. The sheer amount of data available for advertisers and their ability to put a measurable ROI on their ad spend.
YouTube ads can deliver great results, but many creators and startups have a limited marketing budget. They are reluctant to spend money on a video and run ads because they think it will be too expensive.
Related Blog: How to use YouTube hashtags to increase your views
The average YouTube ad cost per view (CPV) on YouTube is $0.010–$0.030, depending on the ad format, placement, and industry. If you have a video with 1000 views, you’ll pay around $10-$30 for those views.
It can cost around $2,000 to reach 100,000 viewers on average. This is not too much if your ad reaches your target audience.
But there is more to explore.
In this guide, we’ll cover how much YouTube ads cost based on several factors, such as video ad formats.
Factors affecting the cost of YouTube ads
The cost of YouTube ads varies depending on the location and type of ad. Here are some of the factors that affect your price:
- Audience targeting: Let’s say you want to target an exact audience (for example, people who live in San Francisco). Then, you’ll pay more than if you’re going to reach a broad audience (all people in the U.S.)
- Video length: The lengthier your video is, the more expensive it will be—because advertisers have to pay for more time on screen. Shorter videos generally cost less than longer ones.
- Ad placement: Ads that run before or during videos usually cost more than ads at the bottom of clips or on the right side of a video’s description section.
- Video quality: Higher-quality videos usually attract higher bids from advertisers because they offer better production value and are more likely to get viewers’ attention.
- Channel niche: Your channel’s niche will affect your YouTube ad cost. If you are promoting a niche with low competition and high traffic, you will get cheaper clicks than if you were promoting a highly competitive niche with low traffic volume.
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YouTube ad formats
As mentioned earlier, a lot of factors affect the cost of YouTube advertising and the YouTube ads cost. One of the key factors is the type of ad you’re running. There are three main types: TrueView In-Stream, TrueView In-Search, and TrueView in pre-rolls. These names may sound difficult. That’s why YouTube has simplified the names now.
TrueView In-stream ads are video ads that play before or during a video on YouTube. There are 2 main types – skippable and non-skippable in-stream ads. These video discovery ads help people find and watch your videos.
You might be wondering how you get charged for a TrueView ad. In general, YouTube charges you only if someone watches at least 30 seconds of your ad (unless it is shorter). YouTube charges you if someone clicks on your video discovery ad. on your ad thumbnail. Skippable video ads are the most popular choice among advertisers since users are most likely to pay attention to them before pressing the skip button. Users find these ads less annoying because they are skippable, unlike the unskippable ones.
YouTube ad formats include:
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Display ads
Display ads are banner ads that run on top of YouTube videos or next to them. They’re typically used to promote products or services directly related to the content people watch.
You could create a video and match it to popular phrases that people in your niche regularly search for. You can then promote that video through a display ad. By doing that, your ads will appear as relevant to the searchers as other feature videos on YouTube.
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Overlay ads
You can create overlay image ads that appear on top of other people’s videos. These ads can be beneficial because they can lead people to your channel if they click on the ad. Additionally, overlay images or text ads can appear on the lower 20% portion of a video, which can help attract people’s attention.
Skippable video ads
Skippable video ads sometimes called “skippable pre-roll” or “skippable in-stream,” are commercials you can skip after 5 seconds. The skippable video ad will show up before the content viewers want to see. They can skip the ad if it doesn’t interest them or watch it until the end if they want more information about the advertised product.
Bumper ads
Bumper ads are short-form videos that appear before or in the middle of a YouTube video. Bumper ads are a great way to promote your channel, product, or service quickly and easily.
You pay for bumper ads based on the number of impressions that they get. YouTube ads cost per thousand impressions, or CPM, which is how much you will pay for every 1,000 views of your ad.
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Tips for creating better video ads on YouTube
While it might seem like creating a YouTube ad is easy, many factors go into making a successful video ad campaign. If you want your ads to get clicks, conversions, and leads, then you need to make sure that they’re optimized for your target audience.
Here are some tips for creating better video ads on YouTube:
- Use relevant keywords in your title and description.
- Include an image in your ad copy.
- Make sure your thumbnail matches what people see when they click on it.
- Write clear and direct titles with strong calls to action.
- Make sure you’re targeting the right audience.
- Make sure you use high-quality videos for your video ads.
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Bidding
YouTube ad cost is based on a bidding system for ad placement, similar to how most other online advertising platforms work. You’ll need to set a daily budget for your YouTube ad campaign.
You can set the budget anywhere from $10 and upwards, depending on your initial experimentation and what you’re prepared to spend. You only pay when somebody engages with your ad, which counts as watching a skippable ad for 30 seconds or clicking on a call-to-action on a display ad.
Before setting your bidding options, make sure you do your targeting. YouTube’s bidding suggestions change as you alter your targeting. Generally, you bid by CPV (cost per view). This means you’re willing to pay up to your bid figure for each view (of 30 seconds or more).
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