How Much Do YouTube Ads Cost?

YouTube ads’ cost is not definite because it depends on the bidding, focus on the target audience and gain potential users for your business.

YouTube, the video-sharing site, is owned by Google, meaning you can advertise on YouTube using AdWords. Like all kinds of Google AdWords campaigns, prices for placements of YouTube ads involve bidding, making it impossible to definitively say how much it would cost.

You can check using online tools like YouTube Money Calculator Tools and I am sure you will be impressed by the real calculations it does for you for any YouTube Channel out there.

Before we pay attention to YouTube ads to learn how to make money from your YouTube channel from a YouTuber’s point of view, let’s go into detail to see from an advertiser’s point of view—which is a bit different.

All About YouTube Ads: As an Advertiser

The screen of the PC shows the YouTube ads signs in a zoomed magnifier.

When you compare YouTube to Google Ads, it’s clear that the YouTube video ad typically has a lower cost per click or view. The average cost-per-view for YouTube ads is $0.010 – $0.30, and your viewed hours will contribute to the overall number of viewers on a video you have posted. The cost to reach 100,000 viewers is around $2, which may seem expensive for some companies but it’s worth the investment.

Why Would You Advertise on YouTube?

The illustration of a girl getting details about her YouTube Ads.

#1 YouTube is a popular video platform that generates billions of YouTube views each month. People enjoy YouTube on their mobile devices daily. With today’s rise in Smart TV’s popularity, there has been an increase in television sets using YouTube services too.

#2 Just like Google, the YouTube search engine is one of many search engines that people use when they’re looking for something on the internet. So they don’t miss anything from a particular channel, they become YouTube subscribers and everything the channel shares appears on their feed.

#3 YouTube is a popular digital marketing platform for advertisers to promote their products and services, with the help of a Google Ads account.

#4 The problematic part of the budgeting perspective is the price rate for YouTube ads. Still, the YouTube ad format is no different from the other online platforms. The standard rule seems to be your bid strategy, which results in the highest bidder getting accepted.

The Different Types of YouTube Ads

Here are the different types of YouTube Ad video formats you can use:

Skippable In-Stream Ads

There is a skip ad option given YouTube content for users who get bored watching them.

These pre-roll ads are the most common type of YouTube ads, and they can be skipped after 5 seconds. For these ads, advertisers pay when the users watch a minimum of 30 seconds, the entire video, or simply create an Ad impression.

There is a certain amount of luck involved in making money on the internet, but you can at least try to make yourself some by running ads like skippable In-Stream ads.

It will be the exact strategy to lead you into an effective advertising campaign.

Non-Skippable In-Stream Ads

Some youtube ads are not skippable.

These video ads are designed to get watched before you’re allowed to watch the main video.

Note that with non-skippable videos, advertisers pay per impression, at CPM. Non-skippable video ads have a longer version, with 30-second video ads but YouTube is phasing these out because of how unpopular they’ve been among viewers who prefer shorter, non-skippable, 15 – 20 seconds-long video ads instead. These non-skippable ads are designed to be quick, concise, and share with the world what your business does. They’re perfect for when you need a little extra attention and are used more for brand awareness ads.

Display Ads

These YouTube ads appear to the right of the feature video on the YouTube homepage, and display promo ads above the video suggestions list.

YouTube ads are a great way to reach your target audience without directly competing with the videos they love. These display ad campaigns will lead to positive results for any type of business, especially one that operates in an area where there’s high competition like search engine optimization or social media marketing.

If you want your video to be seen by as many people as possible, then promote and advertise it on YouTube. It’s not as expensive as you think; you may only need to pay 3 cents per view.

You can make a video to match the keywords people use in their niche and promote that specific YouTube channel with display ads. This will make your video ads seem like regularly featured content on YouTube.

To be successful, your video needs to meet the needs of those who are looking for it, and then you can promote it with display ads.

Overlay Ads

YouTube has overlay ads for YouTubers to drive traffic to their accounts.

This is an example of a semi-transparent video ad that will appear on the bottom 20% of your video screen once the video has been rendered.

One of the best ways to drive more traffic to your YouTube account or any website is by using overlay advertisements. To be successful, you need to constantly upload engaging and entertaining videos.

You can make overlay image ads that display on everyone’s videos, but if they direct viewers to your YouTube channel, you’ll gain even more value.

Bumper Ads

There is a logo design for bumper ads.

Bumper ad videos are here to make sure you don’t miss anything vital in the main video. They can be about 6 seconds long, so enjoy.

Bumper ads are YouTube advertisements used by businesses that generally deliver a short but memorable message to the target audience. They are short so they need to get straight to the point.

The beauty of bumper ads is that they can’t give the entire story in a limited time of 6 seconds, but serve as a complement to larger video campaigns on new product launches and events.

The payment method for bumper ads is by impressions which are charged by CPM (a thousand impressions). The payment is made every time your ad gets 1000 impressions.

Sponsored Cards

These are video content applicable to the video posted, such as products promoted in it.

What Is TrueView Ads?

The YouTube video ads are called TrueView video ads. They’re split into In-stream and Discovery Ads, but you can just call them “video advertisements.” TrueView Video discovery ads are the perfect way to get your video in front of people who haven’t yet seen it. In other words, TrueView discovery ads help your brand get discovered on YouTube. The display or overlay ad options can effectively reach potential fans on the YouTube homepage with high-quality video campaigns.

You can charge more for TrueView in-stream ads that are watched for 30 seconds or longer. You should also get paid more if your video thumbnail gets clicked because it’s an initial indication of interest from somebody who wants to learn more about your offer. There’s more! The YouTube TrueView In-Stream ad has a companion banner ad that’s shown right above the suggested videos list. To this moment, the most popular TrueView ads are the skippable video ad. Even though non-skippable ads sound profitable to advertisers, users don’t find them worth it.

Creating YouTube Ads (bit by bit)

There is a logo of Google ads and the very first step of creating a video campaign.

Well, now that you have learned about the key types of ads and when each of them is used; it’s time for a little how-to!

1- Create the video ad

When you decide to set up a video ad, first think about the objective or goal of your campaign. What is your purpose?

-Introduce people from all over the world to your product or service

-Send to potential customers

-Generate new leads

-Connect with new viewers

To create the perfect video ad, you must know what your objective will be. If a brand awareness campaign falls into this category, then an explainer style would work best for giving info about products or services offered by companies such as yours and how they solve problems with their solutions.

2- Show off your video ad to the world with a simple upload on your YouTube channel

Sign into your YouTube account and upload a video ad.

After your video has been uploaded, optimize it for organic YouTube search. This, people can find and watch the ad after launching a campaign but also by searching on Google directly.

Included in this will be the optimization of video titles, and tags or using the right thumbnails and banners. You can use Thumbnail downloader tools to guarantee your success.

3- Sign up or Sıgn into your advertising account with Google.

Create your advertisements via the Google Ads dashboard you already had. This is related to Instagram and Facebook when you need to use Facebook Ads Manager for it to be effective.

Google is a great way to ads for your business. It’s easy and simple! Just create an account with Gmail workspace, then you can start running Google Ads right away by clicking “Start now.”

4-Begin with a new campaign

Google Ads makes it easy to start a new ad by immediately creating one with the pre-set options. You can first select “Get more views and engagement” on YouTube.

Or click the blue plus icon under “All Campaigns,” if you have an existing Google Ads account.

5- Optimization of Your YouTube Ad Campaign

This is an image to describe a youtube optimization campaign with some icons.

You should not be too concerned about the cost of your YouTube Ads but rather, with the quantity of return they can generate for the money you spent on YouTube advertising. What this means is that it’s vital to monitor campaigns and adapt them at appropriate intervals to optimize their performance.

The secret to optimizing your YouTube advertising is understanding what the numbers are showing you. The most crucial stats include View Rate and Click-Through Rate, which show whether or not people find ads compelling enough for them to take action, which ultimately leads to increased conversions!

You could also work with influencers who are relevant to your product, letting them create relevant content that highlights what you offer.

Sometimes you may not have been getting enough exposure because other companies bid higher than you for the best advertising positions. You could try bidding even higher, and then observe how your YouTube ad performs with a larger audience size before deciding whether to increase it some more or stick with what’s working currently.

The amount you spend on YouTube advertising is crucial to your ROI and bottom line. If you’re skimping on investing then be prepared for lower-than-expected results.

The first step of any successful YouTube campaign is deciding on your aim. You may choose to have aim for sales, website traffic, or leads depending on what you need most at the moment.

That’s a lot of options!

It all depends on what you want to achieve with your video ad. If it is conversions, then drive them by using an influencer or outstream campaign type and set a custom call-to-action button message that will make people take the next step in completing their purchase process.

Tick continue to set up your budget. There are three different types of bidding that you can use to set your prices:

  • CPV, or cost per view can be a great way to make sure your ads are being seen. When someone watches an ad for 30 seconds you will get paid.
  • CPM is the cost per 1,000 impressions. This means that you will be charged only when 1000 times your ad has been viewed.
  • CPA ads are great for marketing because you only pay when people react and act with YouTube likes and clicks in your ad.

Next up is the cost—How much do you want to spend? You may decide on a budget for your campaign so your ad continues until that amount has been exhausted, or decide on an everyday maximum and run continuously.

Yellow dressed lady is caring a big laptop to find out the true demographics of the Youtubers.

Now the step you need to focus on is targeting. Here you can choose the viewers of your ads:

  • Networks are the different ad spaces on Google. In-stream videos, search results, and out-streams are all placed through networks.
  • Choose the languages that will best suit your needs.
  • Choose the geographical locations where you want your ad to be viewed.
  • Exclusions keep your ad running with videos that might not be suitable for it.
  • In addition to choosing which devices your ads can be displayed on.

Targeting can go even deeper by creating ad groups. Choose the audience interest and demographics that best fit your needs.

6-Publish and track your YouTube Ads

Launching your campaign is just the beginning of an entire process. You must log into Google Ads every day to ensure you aren’t wasting money and targeting too many people or places with no interest in what you’re selling.

These are the four metrics you need to focus on. They include: Audience, View rate, Total views, Conversions, and Impressions.

What Is the Difference Between Google Ads and YouTube Video Ads?

The main difference and most important one is that YouTube ads are cheaper than traditional Google Search advertising. It only costs a couple of cents to show your video while you can spend upwards of $40 for just one click from an established PPC campaign with Google ads. Comparatively, with our last YouTube campaign, we had great results. We were able to reach 2 million people with our ads and 33% of them interacted which is way more than what we got from traditional PPC campaigns on Google. When we advertise with Google Ads, we advertise on websites with Google Ads partnerships. For YouTube Ads, we only advertise on YouTube videos.

YouTube Advertising Bidding

Two men are calculating youtube bidding.

YouTube campaign costs depend on the ad placement. There is no fixed price and it differs for all the ad types. What works best is to set an everyday budget that covers your basic YouTube advertising cost.

Generally, businesses use a minimum of $10 for YouTube advertising campaigns and they would only increase it when they have tried most other options and failed. You pay only when there is engagement with your ad, for instance when YouTubers watch your skippable ads for 30 secs or click on a Call to Action on the display ad.

Also, be sure you have the right target audience before you select the bidding options. YouTube may give you bidding suggestions and change the flow of your target.

It’s important to set the maximum amount you can pay so that you don’t get any unpleasant surprises as a result of exceeding this amount.

To maximize your returns on ad spend, you must customize the bids per format. For example, if In-Display ads are more valuable than In-Stream ads or clouds then decrease their pricing accordingly by clicking “Customize Bids Per Format” under the settings tab where there will be two options available: “In-Display ads” and ‘In-Stream ads”

YouTube offers an estimated number of views for In-Search, Display, and Streaming. When these numbers do not match what you want or expect them to be, it’s time to repeat the bidding process until they do.

This number is an indicator of what CPV can be.

Would You Like to Take Your Business or Personal Brand Into The Future?

Then, YouTube advertising is for YOU.

When advertisers place ads on YouTube, they often pass over the question of whether or not their company is ready to advertise. If a brand doesn’t have a comprehension of what’s needed for success with advertising campaigns and social media platforms in general, then it may turn out wasting money. The money may look appreciable,t reaching its objectives – -which could result from launching costly, “irreversible mistakes.”

Brand Lift is the positive impact that YouTube ads can have on your campaign spending. However, most emerging brands should not consider a video advertising budget without conversion goals in mind.

TrueView for Action campaigns have three marked measurements of YouTube advertising readiness. We’re all keen on ensuring our campaign is successful, so we’ll use a baseball analogy to illustrate each level’s potential effectiveness as an investment toward that end goal.

Ready to take your business into the future? Let’s explore how you can use YouTube as an advertising platform.

You may be wondering if and when it is time for you to start marketing with video content, but many things need consideration.

Available, Ready for Action

Brands can create successful campaigns with most of these features already implemented — they just need video content before launching their marketing efforts.

Your Products/Brands have an engaging story to tell. The benefits of your product or brand make it compelling, and that’s what will separate you from the competition in today’s digital world.

The On-Deck level of personal inventory is made up of the following elements:

  • The market is excited about your products and services. Ready with access to funds for testing or positive cash flow.
  • Knowing which type of campaign will yield the best results is crucial for your business.
  • Knowing your numbers, where you can cut costs without sacrificing the quality of service. The more information that’s available to make an informed decision the better.
  • Willingness to invest in yourself and help guide others through the process.
  • Having a successful track record of converting leads.
  • The client arrives at “purchase now” through content, emails, or social media ads. You understand clearly the journey of your customer. What are they looking for specifically to achieve that goal – conversion rates along this path could be improved upon with some tailored strategies.
  • Demonstrations and visuals are great ways to show how your service or product can help customers.
  • Your brand has social proof and a lot of positive reviews from happy customers who’ve had great experiences with you.
  • Warranty guarantees provide added peace of mind when you buy a new product.

Start to Play

You’re warmed up in the On-Deck circle and you’re at bat. At this level, you are ready to test YouTube ads. You may not have a home run video, but you will not get further if your bat isn’t swinging.

  • ●        The seven YouTube ad formats we have implemented for other brands are a winning strategy that can help your company succeed too.●        You may have a wealth of user-generated content, influencer videos, and existing video testimonials. To make the most out of these assets, we recommend that you edit them into finished products which are perfect for testing.●        With rigid video content, At-Bat’s landing page could still use some work.●        Expand your videos to be more engaging and effective. You may create a 15-second or 30-second video that has been successful on Instagram/Facebook, but for it to test properly as well with YouTube, you’ll need an extended length of time between 35 – 60 seconds which will allow the viewer’s attention to stay engaged longer.”

Score a Home Run

You have established yourself as an expert in your field with well-researched content and a team to back you up. Now it is time for a YouTube ad.

  • Home Run brands have a wealth of video content that can be repurposed for testing new designs. This includes influencer videos, testimonials, and more; just with some editing magic.
  • Brands that want to stand out on YouTube need a team of seasoned professionals for their advertising needs.
  • Home Run brands will have a rigid technical setup for discussion tracking along with the ability to enact more complex techniques such as upsells and cross-sells.
  • Brands at this point are looking to invest in fresh, engaging content regularly as long as they can realize an investment.

Consider Some Other Important Areas:

As you may already know, some potential roadblocks and hazards could impede the ability to launch your YouTube campaigns. However, with a little bit of planning these issues can be avoided or at least delayed until they become more serious problems involved in this process.

The challenge faced was having too many plugins, landing pages, or software in play. This confused our users and limited how quickly the company could grow. This was because multiple sources were giving them conflicting messages about what to do next on their journey toward becoming successful entrepreneurs with all these new resources available online today. The good news is that most businesses don’t have this problem since they focus primarily on just one tool at once which helps cut down significantly on complexity when upgrading platforms during future updates.

Conversion Tracking: It is fascinating to see how many potential clients are coming. Consistently you may notice that you can find no conversion data, broken tracker ship systems, and multiple actions being tracked for each campaign under the same customer’s name.

Some of the tags on this website will be required for cleanup before launch. Additionally, not only does the client lack access to Google Tag Manager but also don’t know who does have it installed for them.

Author
Daisy Hoda profile picture
Daisy Hoda [email protected]

Daisy Hoda, is a freelance copywriter with experience in the Social Media world and a perfectionist when it comes to Youtube SEO services.