How Much Do YouTube Ads Cost? [Guide Updated 2022] – Diagram (2023)

In this blog, you will understand how much YouTube ads cost and the factors associated with the cost of YouTube ads.

YouTube is the second most popular search engine in the world. There are around 2.4 billion active YouTube users and around 1 billion monthly viewers. It's no secret that YouTube is an amazing advertising platform. The vast amount of data available to advertisers and their ability to put a measurable ROI on their ad spend.

YouTubeAds can deliver great results, but many creators and startups have limited marketing budgets. They are reluctant to spend money on a video and run ads because they think it will be too expensive.

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The mediaCost of YouTube Adsper view (CPV) on YouTube is $0.010 to $0.030 depending on ad format, location and industry. If you have a video that has 1000 views, you will pay around $10-$30 for those views.

It can cost around $2,000 to reach 100,000 viewers on average. That's not much if your ad reaches your target audience.

But there is more to explore.

In this guide, we'll cover how muchCost of YouTube Adsdepending on various factors such as video ad formats.

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table of contents

The cost of YouTube adsvaries by location and type of ad. These are some of the factors that affect its price:

  • Audience targeting: Let's say you want to target an exact audience (for example, people who live in San Francisco). So you'll pay more than if you're going to reach a wide audience (all US)
  • Video length – The longer your video is, the more expensive it will be because advertisers have to pay for more screen time. Shorter videos usually cost less than longer ones.
  • Ad Placement: Ads that run before or during videos generally cost more than ads at the bottom of clips or on the right side of a video's description section.
  • Video quality: High-quality videos often attract higher bids from advertisers because they offer better production value and are more likely to grab viewers' attention.
  • Channel niche: Your channel niche will affect yourCost of YouTube Ads. If you're promoting a niche with low competition and high traffic, you'll get cheaper clicks than if you're promoting a highly competitive niche with low traffic.

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youtube ad formats

As mentioned above, many factors affect the cost ofYouTube advertising and the cost of YouTube ads. One of the main factors is the type of ad you are running. There are three main types: TrueView In-Stream, TrueView In-Search, and TrueView Pre-Scroll. These names may seem 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.

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You might be wondering how you get charged for a TrueView ad. In general, YouTube only charges if someone watches at least 30 seconds of your ad (unless it's shorter). YouTube charges you if someone clicks on your video discovery ad. in your ad thumbnail. Skippable video ads are the most popular choice among advertisers as users are more likely to pay attention to them before clicking the skip button. Users find these ads less annoying because they are skippable rather than non-skippable.

YouTube ad formats include:

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show ads

Image ads are banner ads that appear over or alongside YouTube videos. They are typically used to promote products or services directly related to the content people are viewing.

You can create a video and combine it with popular phrases that people in your niche regularly search for. You can promote this video through a display ad. By doing this, your ads will appear as relevant to search engines as other featured videos on YouTube.

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overlay ads

You can create overlay display ads that appear over other people's videos. These ads can be beneficial because they can drive people to your channel if they click on the ad. Additionally, image overlays or text ads can appear in the bottom 20% of a video, which can help grab people's attention.

Skippable video ads

Skippable video ads, sometimes called "skippable pre-roll" or "skippable in-stream", are commercials that you can skip after 5 seconds. The skippable video ad will appear before the content that viewers want to watch. They can skip the ad if they are not interested or watch until the end if they want more information about the advertised product.

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bumper ads

Bumper ads are short videos that appear before or in the middle of a YouTube video. Bumper ads are a great way to quickly and easily promote your channel, product or service.

You pay for bumper ads based on the number of impressions they receive.Cost of YouTube Adsper thousand impressions, or CPM, which is what you'll pay for every 1,000 views of your ad.

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Tips for creating better YouTube video ads

While creating a YouTube ad may seem easy, there are many factors that go into creating a successful video ad campaign. If you want your ads to get clicks, conversions, and leads, you need to make sure they're optimized for your target audience.

Here are some tips for creating better YouTube video ads:

  1. Use relevant keywords in your title and description.
  1. Include an image in your ad text.
  1. Make sure your thumbnail matches what people see when they click on it.
  1. Write clear, direct headlines with strong call-to-actions.
  1. Make sure you target the right audience.
  1. Make sure you use high quality videos for your video ads.

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Offers

Cost of YouTube Adsrelies on a bidding system for ad placement, similar to how most other online advertising platforms work. You will need to set a daily budget for your YouTube ad campaign.

You can set your budget as low as $10, depending on your initial experience and what you're willing to spend. You only pay when someone interacts with your ad, which counts as viewing a 30-second skippable ad or clicking a call-to-action in a display ad.

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Before setting up your bidding options, make sure you've done your targeting. YouTube offer suggestions change as you change your targeting. Typically, you bid by CPV (cost per view). This means you are willing to pay your bid amount for each view (30 seconds or more).

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FAQs

How much do ads cost? ›

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!
...
ONLINE ADVERTISING IS COSTS IN 2021.
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 good CPM price? ›

What is a good CPM? A good cost per mille depends on multiple factors, such as the type of ad networks you use (Google ads, display ads, search ads, Facebook ads, etc) Google search ads average CPM is $38.40, while the google display network ads have an average CPM of $3.12.

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 the cheapest way of advertising? ›

However, some cheap advertising methods that can be effective include online advertising (such as through social media platforms), print advertising (such as in newspapers or flyers), and word-of-mouth marketing.

How much do ads pay per 1000 views? ›

How much does AdSense pay per 1000 views? Roughly $0.2 – $2.5 per 1,000 views. Although it depends on many factors including the content of your site, location of your users, time on site and device breakdown. Use our AdSense revenue calculator above to find out how much you could earn with your website.

What is average cost per click? ›

Average cost-per-click (avg. CPC) is calculated by dividing the total cost of your clicks by the total number of clicks. Your average CPC is based on your actual cost-per-click (actual CPC), which is the actual amount you're charged for a click on your ad.

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."

Which country has lowest CPM? ›

Among the countries/territories presented in the dataset, Facebook's highest advertising cost-per-mille (CPM) was in the United States, valued at 35 U.S. dollars in the third quarter of 2021. For comparison, the lowest CPM, one U.S. dollar, was recorded in Pakistan.

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.

What are the 2 most popular ad sizes? ›

According to Google, the best performing display ad sizes are: 300 x 250 – Medium Rectangle. 336 x 280 – Large Rectangle.

Which social media has the cheapest ads? ›

Which social media is cheapest to advertise on? Actually, out of the four social media platforms, Twitter has the lowest cost per click at $0.38, and Facebook isn't far behind at $0.97.

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