Wants to know how much does YouTube advertising cost?
YouTube is arguably the most popular platform for online video consumption. That’s why YouTube advertising has become attractive for anyone looking to reach a vast and diverse audience.
However, the cost of YouTube advertising can vary depending on several factors. This article explores how much YouTube advertising costs with a breakdown of tips on optimizing the expenses.
Factors Affecting YouTube Advertising Costs
01. Ad Format
YouTube offers various types of ads, each with its cost structure. The main ad formats are –
- TrueView Ads (Skippable Ads): These are the most common that can be skipped after 5 seconds. Such ads are priced based on cost-per-view (CPV). Advertisers only pay when viewers watch at least 30 seconds or interact with it.
- TrueView Discovery Ads: These are display ads on YouTube search results and related videos. Such ads are priced on a cost-per-click (CPC) basis. It means advertisers will pay when a user clicks on the ad to watch the video.
- Bumper Ads: These are short but non-skippable ads that last for about 6 seconds or so. Such ads are priced based on cost-per-thousand impressions (CPM). Therefore, advertisers will pay for every 1,000 times their ad is shown.
- Non-Skippable In-Stream Ads: These ads play before or during a video and cannot be skipped. Such ads are also priced on a CPM basis (for most cases).
- Overlay Ads: These banner ads appear at the bottom of the video. They’re usually priced on a cost-per-click (CPC) or even CPM basis.
02. Target Audience
The cost of YouTube advertising can vary depending on the targeting options. YouTube offers several ways to target specific audiences, including –
- Demographics: The more you can specify your target, the higher the cost. It’s because you’re narrowing your pool of potential viewers.
- Geographics: The cost can also differ based on location. Ads targeted to specific regions or countries might cost more or less based on competition.
- Interests and Behaviors: Targeting audiences based on browsing or interests will alter the costs. For example, users interested in tech may cost more.
- Device Type: You can even target users based on their devices. Device targeting can influence ad costs, as some platforms may be more competitive.
03. Bidding Strategy
Your chosen bidding strategy is another determinant of your cost on YouTube ad campaigns. Standard bidding options include –
- CPV (Cost Per View): You pay only when someone watches your video ad for a particular duration (about 30 seconds). The same goes for customer interaction (clicks). It’s primarily applicable to TrueView ads.
- CPC (Cost Per Click): You pay each time a user clicks on your advertisement. This one is primarily used for TrueView Discovery ads.
- CPM (Cost Per Thousand Impressions): You pay for every 1,000 times your ad is shown. It’s typically used for bumper ads as well as non-skippable in-stream ads.
- Target CPA (Cost Per Acquisition): You can set a target cost per conversion (sale, sign-up, etc.). Google automatically optimizes your bidding to help you achieve the target CPA.
04. Ad Length
The length of your ad can also impact its cost. Longer ads (especially non-skippable in-stream ads) tend to cost more. Shorter ads, such as bumper ads (6 seconds), are often less expensive.
05. Ad Placement
You can even choose where your ad appears, influencing the cost. For instance,
- YouTube Search Results: Ads placed in search results are costlier since they appear in obvious spots.
- Suggested Videos: Ads placed in the “up next” section or as suggested videos can also command a higher price.
- Video Partners on the Display Network: Ads shown on other video sites that partner with Google (sites or apps) may cost less.
Estimated YouTube Advertising Costs
- Cost Per View (CPV): The average CPV for YouTube ads ranges from $0.10 to $0.30. However, costs can go lower or higher based on the competition and targeting options.
- Cost Per Thousand Impressions (CPM): CPM for YouTube ads ranges from $2 to $10 on average. Highly competitive markets can see CPMs higher than $10, while niche markets may have lower rates.
- Cost Per Click (CPC): The CPC mostly ranges between $0.10 and $1.00. More competitive industries are likely to drive the price higher.
- Minimum Campaign Budgets: For YouTube campaigns, Google Ads requires a minimum daily budget (from $1 to $5 per day) for TrueView campaigns. However, the amount is higher for display campaigns.
Wrapping Up
YouTube advertising features reasonably flexible pricing that can be tailored to different budgets. You should leverage the ad formats, bidding strategies, and targeting options. That’s how successful ones have enjoyed buzzed campaigns to suit their specific needs. A balanced YouTube expense can help you achieve your marketing objectives from small businesses to large enterprises.
