How much do YouTube ads cost? Average campaign costs and more (2023)

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Since 2005, YouTube has been the video platform of choice for topics ranging from baby and cat videos to product tutorials and movies.

YouTube is now the second most used search engine behind Google, and it's easy to see why. Just think of the typical day you spend online. You'll probably spend at least 30 minutes watching a few game highlights, watching a short news clip, or studying a quick how-to video.

If you want to talk about traffic volume, YouTube has it. YouTube users watch more than1 billion hours of videosper day. From an advertiser's perspective, this is a potential gold mine.

Have you thought about YouTube advertising?

How much do YouTube ads cost? Average campaign costs and more (1)

Why advertise on YouTube?

For advertisers who have relied on Google ads but are unhappy with rising ad costs and low conversions, YouTube is a great alternative.

YouTube not only has tons of daily active users, but also has affordable advertising costs for many different types of ads. You can also think of these ads as suchGoogle advertising on Youtubecontrolling these ads from the same Google account.

In 2020, 60% of marketers said yes.increase your marketing budget for YouTube, thanks to the solid growth of the platform.

Users in most (if not all) niches will eventually gravitate towards YouTube to engage with video content that educates and informs them. The most popular user demographic is 35 and under, but not by much. 73% of Americans between the ages of 36 and 45 also use YouTube.
Even more interesting in terms of user demographics, only 16.4% of traffic comes from the Americas. 9.2% of YouTube viewers are in India and 4.8% of viewers are from Japan. This article shows the global reach of YouTube and how it can bereasonable marketing opportunitythrough many countries.

Advertisers can target any demographic on YouTube by quickly placing ads on popular channels and videos in different niches. However, your ad placements will be much more effective if you determine which channels your customers are likely to follow.

Let's say you have a brand of golf clothing. YouTube has millions of hours of golf-related content and several major influencers ranging from 100,000 to millions of subscribers. If you were to advertise on your channels, you would be exposing your brand to a sizeable audience.

YouTube ads are within the reach of most on a low to medium campaign. The average cost per view is around 10 to 30 cents, and anyone who sees your video ad counts toward the video's YouTube audience. The average cost to reach 100,000 viewers is around $2,000, which is a steal compared to most Google ad campaigns.

How much do YouTube ads cost? Average campaign costs and more (2)
(Video) YouTube Advertising Cost (What Do Average YouTube Ads Cost?)

Additionally, the way viewers consume YouTube content has helped publishers get more value from their ad spend. For example, smart TVs have allowed more households to record YouTube videos without having to turn on a computer. As a result, video publishers that have high-quality videos with good production value can have a bigger impact on these larger screens.

How do YouTube ads work?

YouTube Ad Types

YouTube offers advertisers multiple options depending on how they want to reach potential audiences. That's whysolid Google ad platformis compatible with YouTube, it has become a trending place for advertisers from all industries.

Let's break down the basics of these ad options and see which ones work best for your next campaign.

It's also important to note that your YouTube promo videos must be hosted on your account. So if you don't have a YouTube account yet, it's time to create one. Once created, you need to connect it to your Google Ads account.

Each video ad you create, regardless of type, requires a title of up to 25 characters and a two-line description of up to 35 characters.

The platform gives you up to four thumbnail options, but you also have the option to create a custom thumbnail.

Skippable in-stream ads

The most common type of YouTube ad is the skippable in-stream option. These ads can appear before, during or after a video and can be skipped by a viewer after 5 seconds. Skippable in-stream ads can be up to 6 minutes long.

How much do YouTube ads cost? Average campaign costs and more (3)

The key to engaging your audience with skippable in-stream ads is to immediately make the content as engaging as possible. You have to excite and surprise the viewers in 5 seconds. It is not an easy task.

The most successful skippable in-stream ad campaigns are the ones that offer a wild proclamation at the beginning, not something false or inappropriate, but a message that entices users to stick with the video ad and learn more about the product.

Skippable in-stream ads are probably the best option when your brand or product offering is relatively unknown.

Non-skippable in-stream ads

Non-skippable ads play before, during, or after another video. Viewers don't have the option to skip your ad, and these videos can be anywhere from six to 15 seconds long.

How much do YouTube ads cost? Average campaign costs and more (4)
(Video) YouTube Advertising: What's the Cost?

The advantage here is clear: people stay with you, whether they want to or not. You cannot simply unsubscribe from your ad. You are required to view it in its entirety. Because of this, advertising costs are higher.

Non-skippable in-stream ads are ideal for larger brands that are willing to spend more to generate additional brand and product exposure.

These video ads are more similar to the commercials you would see on television.

Video discovery ads

How much do YouTube ads cost? Average campaign costs and more (5)These ads appear as thumbnails alongside other videos on YouTube. They may appear at the top of the YouTube search results page, in the suggested videos area, or on the home page area of ​​your YouTube mobile app.

When you set the viewability settings for your Discovery video ad, set the video to public or unlisted. This can be changed in the privacy settings.

If your video was designed 100% for viewing and not for organic views on your channel, you may not want to keep it listed.

bumper ads

Bumper ads appear just before the main video begins. A YouTube bumper ad is a non-skippable six-second video best used for brand awareness campaigns.

How much do YouTube ads cost? Average campaign costs and more (6)

The main advantage of YouTube bumper ads is that they are cheap, since Google charges them at a price per thousand impressions. And since there's a countdown timer that lets viewers know how long the ad will last, they're much more likely to stick around to watch it.

As with all YouTube ad options, the price of bumper ads varies. On average, advertisers spend between $1 and $4 per thousand views.

outbound ads

Outstream ads appear outside of YouTube. These are mobile-only ads that appear on partner sites and apps and automatically play silently when they appear on the screen. Users can usually turn on the sound with a simple tap and scroll or dismiss when an ad appears.

How much do YouTube ads cost? Average campaign costs and more (7)

You may be thinking, "Why would I want my YouTube ads to appear outside of YouTube?" First, this technology provides anative ad experiencehe tends to do better with viewers. As long as you can display your video ads without interrupting a user's normal viewing experience, they're much more likely to respond positively.

Second, since outstream ads start off muted, they won't irritate the user and cause them to bounce off the site right away. It is 100% user choice to hear and see the ad or not.

(Video) Google Ads Budgeting For Chiropractors - How Much On Average Does It Cost To Advertise On Google?

Finally, outstream ads lend themselves to the mobile-first nature of how we use technology today, as they appear within app content.

header ads

Masthead ads dot the top of the YouTube home page and occupy some of the most coveted real estate in the world.

Since this is valuable territory, headline ads command a high price tag of $300,000-$400,000. Probably out of the marketing budgets of most small and medium-sized businesses.

How much do YouTube ads cost? Average campaign costs and more (8)

Like outstream ads, these videos initially play without sound. Users have the option to unmute or click a call-to-action button that transfers them to the site. For more information, you should contact the Google sales team.

video orientation

The effectiveness of video ads lies in the targeting. YouTube makes things easy by offering advertisers robust audience targeting options.Fine tune your campaigns.

Key audience targeting methods include:

Targeting demographic groups: Choice of age, gender, parental status or family income of your target group.

interest targeting: Find people who have interests related to your brand or niche. You can choose from several available audience categories to reach people with relevant interests.

  • affinity segments- Find people who have an affinity for your niche or related products.
  • Custom affinity segments– Go further by targeting audiences that are most relevant to your brand. With custom affinity segments, you can target audiences interested in a subset of your niche. For example, instead of targeting "women's clothing," you would target "women's sportswear."
  • life events: Life milestones can also be targeted. This is especially great if you're offering a product or service related to moving (graduating from college), getting married, or having a baby.
  • Market segments– Select from in-market audiences to find customers who are currently searching for your products and considering purchasing a product or service like the ones you offer.
  • Custom Segments:Reach viewers as they make their buying decisions. This information is collected based on the keywords that the target audience has recently searched on

your data segments- Target viewers of your past videos, video ads, and the entire YouTube channel. You can show ads to people who have previously interacted with your mobile app or website.

Customer Match- Use your own data online and offline to connect with customers on the Google and YouTube platforms.

Similar segments– If you want to replicate your top performing audiences, lookalike segments are your ticket to success. You can match audiences that are the same as your existing viewers.

What determines the cost of YouTube ads?

Understand how much YouTube ads cost so you know how your money should be spent. With an average cost per view of 10 to 30 cents and an average daily budget of $10, YouTube ads are within the reach of most types of businesses.

Most advertisers pay each time someone views their ad. However, you can set a maximum amount you're willing to spend on views so you don't overspend on your campaign.

(Video) How Much YouTube Pays You For 1,000 Views In 2023

If doing numbers isn't your thing, it might be a good idea to do it.Hire an experienced advertising teamwhich can help you adjust your budget accordingly.

Producing a high-quality video also helps reduce advertising costs. If your ad gets a high CTR, you will end up saving money.

Another pro tip is to improve your landing page. A/B testing your website's landing page ensures it's optimized for the highest conversions from your video ads, improving campaign quality and reducing ad spend.

When your ad is shown depends mainly on your targeting and budget settings. YouTube finds the sweet spot between placing your ad on the most relevant video and meeting your budget constraints. Of course, as with all other ad platforms, you have the best chance of placing an ad when you're willing to increase your budget. But like we said before, YouTube typically has a lower cost of entry than other ad platforms, so you probably don't have to spend a lot of money on a specific campaign.

How much does it cost to advertise on YouTube?

If you're a small business owner and think YouTube costs advertisingstilltoo high to be entertaining, beware of the ROI factor.

When YouTube ads are designed to engage the user at the right time, whether they're in the awareness or consideration phase of their customer journey, advertisers will benefit from more positive overall ROI.

Small business owners running YouTube ads for the first time will find that there are clear differences between ads that target cold audiences and warm audiences. The best way to see what types of campaigns are most effective is with A/B testing.

Goals and optimization of YouTube campaigns

The success of your ad campaigns depends on setting the right goals. For example, do you want your video ad to increase awareness of your brand? Or do you intend to showcase a specific product or process?

Setting goals early on in a new campaign will help you better understand your KPIs and accurately measure the progress of your ads.

YouTube ads are not a set-and-forget adventure; They require constant testing and retesting to get the most out of your investment.

If all of this seems overwhelming, it's perfectly normal. That is why it is useful for most small and medium business owners to outsource their YouTube promotional activities to a talented and experienced marketing agency.

Indigital blue laser, we are years oldExperience in tracking successful ad campaignsdifferent scales. We work within your YouTube advertising plans and provide dedicated customer support when you need it most. Plus, we can show you how to master the platform and get more leads on your website than ever before.

Ready to master video ads?Contact Ustoday to launch your YouTube ad campaign now!


How much does an average ad campaign cost? ›

How Much Does Digital Marketing Cost?
Digital Marketing ChannelAverage Monthly Price
SEO Agency$2,000 – $6,000
Content Marketing$3,900 – $12,000
Social Media Campaign$4,000 – $7,000
PPC Campaign$6,250 – $10,000
2 more rows
Feb 16, 2023

How much should I spend on paid ads? ›

Advertising Spend

If you want to maintain current revenue amounts, then 5% to 10% of sales allocated toward advertising may suffice. If you want rapid growth, then you may need to push that number higher, possibly to 20% or more depending on the industry and type of business you operate.

How are ad campaign fees calculated? ›

The ads cost calculation is very easy, simply take all the ad spend of all your advertising platforms and campaigns (from Facebook advertising to Google Ads, or billboards.) and add them up. The advertising costs calculation: Online advertising costs + offline advertising costs = Total advertising costs.

What is a good cost per 1000 impressions? ›

What is a good cost per thousand? It all depends on your industry, advertising budget, and CPM pricing model, but the average online advertising cost per thousand impressions an advertiser pays would be around $3-$10. if you pay less than $3 for one thousand impressions, you probably have a pretty good CPM.

How much does it cost to make a 1 minute ad? ›

TV ad prices for daytime programming range from $500 to $4 per second of airtime; primetime programs can run from $1,000 to $10,000; network commercial rates can be as high as $25,000 per 30 seconds for sports events like the Super Bowl.

What is a reasonable budget for Google ads? ›

If you're a beginner, try an average daily budget of US$10 to US$50. Check your account daily after applying a new budget to see how your campaigns have performed. You can set a shared budget with the amount you're willing to spend across multiple campaigns for the same client.

What is a reasonable marketing budget? ›

In the simplest terms, your marketing budget should be a percentage of your revenue. A common rule of thumb is that B2B companies should spend between 2 and 5% of their revenue on marketing. For B2C companies, the proportion is often higher—between 5 and 10%.

Is paying for ads worth it? ›

If you've been using every free marketing platform available and still not seeing quality results, it may be time to invest in paid advertising. Online paid advertising will generate valuable traffic to your website, create brand awareness, increase leads, and make sales.

How much does it cost to make a good ad? ›

The average cost per click for most verticals is $2-$4, while more competitive industries like lawyers, insurance, and loans can cost $50 per click!
PlatformAverage CPCAverage CPM
Google Search Ads$2.32$38.40
Google Display Ads$0.67$3.12
Facebook Ads$1.35$8.60
4 more rows
Mar 26, 2021

What is a CPM of 7 mean? ›

What Is Cost Per Thousand (CPM)? Cost per thousand (CPM), also called cost per mille, is a marketing term used to denote the price of 1,000 advertisement impressions on one web page. If a website publisher charges $2.00 CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad.

How do you calculate campaign spending? ›

Calculating ROAS is simple. You divide the revenue attributed to your ad campaign by the cost of that campaign. For example, if you spend $1,000 on ads, and your revenue is $2,000, you calculate ROAS by dividing $2,000 by $1,000. This gives you a ratio of 2:1 or 200%.

What percentage is ad spending? ›

Percentage of ad spend: 15-30%

When considering a proposal that uses this pricing model, the main thing you're going to want to ask is what's included: Will the agency be updating ad copy?

How much is 1 million TikTok views worth? ›

TikTok committed $300 million for this program, which would then be paid out to eligible creators depending on the number of views they get. So for instance, considering the payment amount highlighted above, you could earn about $20-$50 for a million views. And the more views you get, the better you'll earn."

What is the 7 times 7 rule? ›

The Marketing Rule of 7 states that a prospect needs to “hear” the advertiser's message at least 7 times before they'll take action to buy that product or service. It's a marketing maxim developed by the movie industry in the 1930s.

Should I pay for impressions or clicks? ›

Generally speaking, PPM ads tend to be a bit less expensive than the ads handled by a pay per click management team. However, it's important to remember that investing in expert PPC management can result in more conversions than a pay-per-impression ad can.


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