9 minute reading
You probably already know that YouTube is the second largest search engine after Google.
In 2019, the video streaming platform had approximately1.68 billion usersand 2 billion unique monthly users.
These statistics alone make YouTube a desirable advertising platform for any business looking to increase their visibility.
Advertising on YouTube emerged over a decade ago, and video ad formats have undergone many transformations.
If you are wondering about the cost of YouTube ads and advertising opportunities on this platform, then you are at the right place.
Moving forward, we'll take a look at the cost of YouTube advertising, what video ads entail, and most importantly, how you can successfully use them to promote your business.
Why you should consider advertising on YouTube
Before you decide if you want to advertise on YouTube, ask yourself if you can invest increating high quality videos.
You can record an actual video or use a platform like Creatopia to create your own YouTube ad.
You can also combine your YouTube advertising strategy with the creation of your company's YouTube channel. the secret iscreate a personalized and dynamic channelthis is attractive to the audience you want to attract and convert.
Here are three reasons why YouTube advertising is worth a try:
One of the main reasons why you should consider advertising on YouTube is the massive reach of the platform.
Your potential customers probably watch YouTube videos every day, so why not target them through a YouTube ad?
Maxim Roslyakov, Senior Vice President of Marketing forSEMrush, reinforces this idea by saying that:
“Any YouTube ad is content itself, and as such, these ads can have different purposes. YouTube ads are a perfect match when it comes to increasing brand awareness, given its large audience, and reaching potential customers who might be willing to buy products and services.”
2. Advanced segmentation
Another good reason is the fact that you have access to advanced guidance. This means you won't spend money targeting people who aren't interested in what you offer.
You can target users based on gender, age, location, and of course more advanced targeting based on topics, keywords, and online behavior.
What's more, is that you can usefind my audienceto learn more about the audiences you can reach on YouTube.
Another benefit is that you can target individual channels and creators, which is not an option on other major platforms like Instagram or Facebook.
We recommend prioritizing your targeting optimization to increase the success of your campaign.
3. Follow up
Even if you're new to video advertising, YouTube makes it easy for anyone to track and measure the effectiveness of their campaigns.
Real-time statistics will help you discover if your video ads are performing as expected.
Last but not least, don't forgetcheck out these guidelinesabouthow to create a youtube ad.
Now, let's see how much it costs to advertise on YouTube.
How much do YouTube ads cost?
There is no fixed amount when it comes to the cost of YouTube advertising.
The cost of YouTube ads varies based on the length, complexity, number of camera angles, and words in the video script.
Another variable for cost is the video ad format you choose, so you'll need to consider your budget and needs before making that decision.
On average, YouTube ads cost around $5,000, taking into account the video recording process and advertising on the platform itself.
YouTubeTrueview Adso In-stream ads will cost between $0.10 and $0.30 per view, depending on your target audience and marketing goals.
YouTube Discovery Announcementsor YouTube display ads will cost around $0.30 per click.
YouTube Bumper AdsThey're charged on a CPM basis, which means you only pay each time your ad gets 1,000 impressions. Typically, this type of YouTube ad costs between $1 and $4 per thousand views.
header adsget the most reach in the shortest amount of time, so be prepared to shell out big bucks. Considering your video footage and the cost of advertising on YouTube, $5,000 should be the minimum budget if you need a more complex campaign like this.
What most advertisers do is allow a minimum of $10 per day for a campaign and then increase that amount once they find what works best for them.
An average advertising cost per view on YouTube is between $0.010 and $0.030. So the total value per 100,000 will be around $2,000.
6 Video Ad Formats You Can Create for YouTube
There are several types of video ads that you can use to promote your business on YouTube.
The good thing about most of them is that you won't have to pay anything unless people show interest and interact with your ad.
We will review them all as each offers different benefits.
1. Skippable in-stream ads (previously called TrueView ads)
These are the classic ads that have appeared at the beginning of every video since YouTube started offering video advertising.
These used to be known as TrueView ads, but that name has changed as you now have the option to control how long your video is billed for.
This particular ad format can play at the beginning, middle, or end of a video. The allowed ad length must be between 12 seconds and three minutes.
However, the most popular ones last around 30 seconds. As mentioned above, you will only be charged if someone interacts with or views your ad for 30 seconds.
If it's shorter, they'll have to watch it in full.
Since this video ad format allows the user to move forward after five seconds, your video should get people to take action in just a few seconds.
As shown in the example above, even though the video is 1:28 min long, users can skip it after just five seconds.
The advertisement also clearly presents what is being advertised.
There is also the option to get more information about the offer on the official website. This means that all the important information is there, and even if users choose not to interact with it, they still know what the ad is about and can decide to search for it later.
2. Non-skippable in-stream ads
These ads can also be shown at the beginning, middle, and end of a video, but unlike the previous format, they cannot be skipped and the user must watch the entire video.
They can only be 15 seconds or less, so your message needs to be clear and concise, as well as compelling.
You don't want the viewer to be frustrated by having to watch a tacky, irritating ad for 15 seconds before they get to the video they want.
Maxim Roslyakov, Senior Vice President of Marketing at SEMrush, added that:
“This is a brilliant way to connect with your audience during those 15 seconds that the YouTube user can't turn off the ad. By forcing users to watch your ad from start to finish, with no option to skip, you are putting your brand on the radar. It is a way to be remembered and, at the same time, a smart way to convey the key message of your brand”.
This Vimeo example is very well done.
It's already a well-known video platform, so there's no need to go into too much detail. The advertisement is mainly used to increase brand awareness.
3. Video Discovery Ads (formerly called Image Ads)
This type of ad will not appear before or during a YouTube video, but will appear as a suggestion in search results or as related videos in the right sidebar.
It can also appear on YouTube's mobile home page. In this case, you will be charged each time someone plays the video, regardless of the length of the video you are watching.
These types of video ads are great for demonstrating how a particular product works or what it has to offer, like the example below.
Following the user's search for “how to make bread”, the first suggestion is an advertising video for bakery equipment, more precisely, a shelf oven for the production of bread and sweets.
The ads will always be relevant to the user, since they depend on the exact keywords that were used when formulating their search.
4. Bumper ads
Bumper ads are non-skippable video ads that, unlike in-stream ads, only last six seconds or even less. As expected, you will be charged each time they appear.
They are also more suitable for companies looking to increase brand awareness. As they are very brief, the information should be minimal and clear.
However, the benefit is that you will have the attention of your target audience for six seconds. Therefore, users are likely to gain some insight into your business from viewing the entire ad.
This type of format is also more compatible than others, since the user does not have to wait for the "skip" button to access the video. Instead, they just have to be patient for six seconds and the YouTube video will play automatically.
5. External advertisements
Outstream ads are perfect when you want to expand your campaign to mobile devices as well. They are typically seen on websites and apps that have a partnership with Google and not on YouTube pages.
For mobile web placements, this type of ad typically appears in banners, portraits, or full screen.
The special thing about them is that they start playing automatically with the sound turned off, and viewers can tap on the video to activate it.
For this type of ad, you'll only be charged when the user views two seconds or more of the video ad. So again, only really interested users will increase the cost.
6. Header Ads
This is a more expensive ad format and can only be used through a reservation with a Google sales representative.
It's perfect for when you want to reach a large audience and your goal is to increase your brand awareness in a short amount of time.
These ads sit at the top of the YouTube feed and play automatically with the sound off for 30 seconds or more.
These ads can be in widescreen or 16:9 format and include information directly from your channel in the right side panel.
However, these types of YouTube ads cost more than the others, since they are based on cost per day or cost per thousand impressions.
You can get a quote after talking to Google's advertising team.
Defining the goals of your YouTube ads
Before you start spending money on YouTube advertising, it's essential to know what you want to get out of it.
Do you want to get noticed, generate more interest in your brand or increase conversions?
if your goal isincrease ad awareness and recall, you'll need to work to create a video ad that will grab the attention of potential customers and retain the interest of existing customers.
For this, you can use in-stream ads that help you reach your audience in seconds and are also profitable. Another option would be bumper ads that help you share your message with potential customers in just six seconds. Outstream video ads and header ads are also suitable ad options for this objective.
The goal of increasing consideration and interestit's more complex, since your goal is to influence potential customers at times when they're most receptive to suggestions.
The best ad formats for this specific objective would be In-Stream and Discovery Ads. Both help deliver your message successfully. The first type of ad can help you make an impact, and the second video ad format will only be seen by an interested audience.
Sedriving actionis your main goal,then skippable in-stream ads for action might be your best bet.
Although it is a skippable format, you decide how long your ad will last and you have the option to optimize it to reach your target audience.
Although YouTube is a great platform to promote your business, you shouldn't rely on it alone.
Clearly define your strategy and goals before you even decide what type of video ad format to choose.
Most importantly, craft your message so that it's attention-grabbing, informative, and believable—especially when you only have seconds to pique someone's interest.
Then find what works for you, optimize along the way, and measure your results.
Have you ever thought about advertising on YouTube? I want to know what your conclusions were and if you have any additional advice.
How much do ads cost? ›
ONLINE ADVERTISING IS COSTS IN 2021.
|Platform||Average CPC||Average CPM|
|Google Search Ads||$2.32||$38.40|
|Google Display Ads||$0.67||$3.12|
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.
On average, small businesses spend $2500 to $12,000 monthly advertising online. While most small businesses pay $10,000 on online advertising yearly, more than 37% spend less than this amount annually.How much do you spend on ads? ›
The U.S. Small Business Administration recommends spending 7 to 8 percent of your gross revenue on marketing [source]. There is also a general rule of thumb that you should aim at spending between 2-5% of your sales revenue on marketing.How do I calculate my ad budget? ›
Determining how much to spend on advertising
The general rule: your marketing budget should be seven to eight percent of your annual sales revenue. Of that, about 15-20% of that budget should go toward advertising costs.
To summarize, the average cost of TV commercial production ranges from about $1,200 per minute to somewhere north of $100,000. Typical commercials in the markets our studio serves are generally in the neighborhood of $1,500 to $20,000 for most projects.What makes an ad expensive? ›
TV ads are often expensive because of finite supply and high demand. By contrast, search engine optimization (SEO) is often less expensive because there are unlimited opportunities for development; that said, even SEO can be pricey under the right conditions.