YouTube Ad Cost: EVERYTHING you need to know | LinkDoctor™ (2023)

Congratulations on your first step into YouTube advertising! The fact that you're reading this article means you're curious to know how much your YouTube ads will cost. Being curious is always the first step.

There are many factors that contribute to the overall cost of your YouTube ads. We'll discuss them below to give you a fuller understanding of how YouTube charges.

However, if you want a quick estimate of overhead costs, we can look at how much companies typically spend on this. The cost of YouTube ads is in the order of magnitude$0.10 - $0.30 per view on average. The total number of YouTube viewers depends on how many total views you get.

Let's delve into the details below.

How much do YouTube ads cost?

Long story short, the cost of your YouTube ads depends on many factors. These factors include:

  • target market
  • display type
  • highest bid
  • Long Videos

If you are aiming to get 100,000 viewers, it will cost around2.000 $.

This is a rough estimate based on typical practices for companies that advertise on YouTube. It's also important to note that these costs only cover actual advertising on the platform. The cost of creating the ad itself is not included.

However, these are general estimates. To get a better idea of ​​the cost of YouTube ads, you first need to understand the factors that contribute to it. This will give you a more realistic cost estimate tailored to your needs.

Types of YouTube Ads

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As mentioned earlier, this affects the cost of your ads. A good rule of thumb is that the more space your ad takes up in a video, the more expensive it will be.

It's important to understand the different types of ads, as each has its own benefits. You need to know how each one works to get a better idea of ​​which one best suits your needs.

1. Show Ads

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This display is located in the upper right corner of the screen. These are the ads that appear above your suggested videos.

Display advertising can be effective on other platforms. However, it is important to remember that this type of ad is not placed over the video that the user is watching on YouTube. Because of this, some advertisers are reluctant to use this ad.

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On the positive side, this type of ad can goAs low as 3 cents per call.

2. Overlay Ads

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These are the ads you see at the bottom of the screen when watching a video. They are semi-transparent so as not to distract users too much.

These ads can appear on any video. But again, targeting the right market is still the best route. After all, the end goal is to encourage people to click on it and find out more about you.

3. Skippable video ads

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These ads were formerly known as TrueView ads. We are all familiar with these types of ads as they appear at the beginning of a video. They can also be placed in the middle or at the end of a video.

The defining feature of this advertisement, as the name suggests, is that users are given the option to ignore it. These videos can be between 12 seconds and 3 minutes long. However, the most popular length is around 30 minutes.

Users can skip the video after 5 seconds. If you're worried that 5 seconds is too short, the display also shows important information about that. In case users want to skip it but are a little interested, they can look for it later.

4. Non-skippable video ads

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They are similar to skippable video ads in that they also appear at the beginning, middle or end of a video.

The main difference between the two is that this type of ad does not give the user the option of ignoring it. The length of this video is also limited to just 15 seconds.

Therefore, your ad should be sweet, short, concise and memorable. You only have 15 seconds to engage your viewers.

5. Bumper Ads

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This is also a non-skippable type of ad. But unlike the previous one, this one only plays for 6 seconds or even less. Because of this, users must wait until the full 6 seconds are up before watching again.

Due to its brevity, this type of ad is best for increasing brand awareness. Your message needs to be short and concise as you don't have a lot of time to explain.

6. Sponsored Maps

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They display user information relevant to your ads. It may contain the product or service you are promoting. This gives your audience a glimpse of what you have to offer, encouraging them to engage with you more.

7. Header Ads

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This requires you to contact a Google sales representative to make a reservation. They can also help you get an estimate of your total YouTube ad costs.

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It's a prime place to place an ad as they will show up on a YouTube feed. Due to the abundance of people likely to see the ad, this type of ad tends to be a bit pricey.

These ads are great for increasing brand awareness. They are automatically played when users view the YouTube feed, but are muted so as not to be distracting.

highest bid

YouTube ads use a cost-per-view (CPV) bidding type. This means you pay for video views or how people interact with your ad. This is an important part of determining the cost of your YouTube ads, so let's discuss it in detail.

A view depends on the view type. Take skippable ads, for example. The user must watch the first 30 seconds of your ad for it to count as 1 view.

To set your CPV, you need to determine the maximum amount you're willing to pay per view. This is your maximum CPV, or simply referred to as your maximum CPV.

Your maximum CPV differs from your actual CPV. This is the final amount you will pay after the bidding process is complete. This way, Google makes sure you only pay for what you need.

Let's look at an example to better understand how bidding works and how it affects the cost of your YouTube ads.

For example, your maximum CPV is 20 cents. A competitor is offering 15 cents. As your maximum CPV is higher, you are the winning bidder. Google only charges 16 cents because the next bid is only 15 cents. The 16 cents you pay is the actual COGS.

Why advertise not YouTube?

1. Get far and far

YouTube is considered the second largest search engine and also the second most visited site, just behind Google. This is due to the ease of use of YouTube and because most people prefer to record information through video clips.

YouTube processes more than3 billion searchesone month. The platform is so massive that it's bigger than Bing, Yahoo, Ask, and AOL combined. In addition to almost 1 in 2 Internet users being on YouTube, there are also 1 billion unique visitors every month.

The market present on this platform is huge. You can use it to reach even the most remote corners of the world. It would be a wasted opportunity if you didn't maximize advertising on YouTube.

2. Easily track ad metrics

When you invest time, money, and effort into a project, you want to know how it went. With advertising on YouTube, you can know exactly how your ads are performing.

Here are the key metrics to measure your ad campaigns.

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  • Views
  • view rate
  • cliques
  • click through rate
  • Commitments
  • commitment index
  • unique viewers
  • Video played at 25% / 50% / 75% / 100%

Did your last ad not do so well? Let's see what we can improve. Was this ad a success? What good have we done so that we can continue? Knowing how you perform on these metrics can help you make informed decisions.

4. Advanced Segmentation

YouTube allows you to specify the target market where you want your ads to appear. This ensures that the right people see your ad.

This is more cost-effective compared to traditional advertising where you only show your commercials to people. You can be confident that your budget will only be spent on advertising in your target market. No money is wasted showing your ads to people who are unlikely to engage with them.

You can target users who see your ads based on the following criteria:

  • To alter
  • Location
  • Gender
  • Keywords used
  • online behavior

You can even use Find My Audience to better understand your market. When you're ready to expand your reach, you can also use this to find a relevant audience. Find My Audience helps you make informed decisions about how to maximize your target market and the bids you set for your ads.

Improvement of Youtube campaigns

Here we list some methods that you should use to improve the success rates of your YouTube campaigns. They are very specific to video campaigns and should be handled accordingly.

Analyze your campaign

Before trying to improve a campaign, first analyze its past growth. The metrics used to track YouTube ad spend for video campaigns are not set in stone. However, you can use metrics like Click Through Rate (CTR), Cost Per View (CPV) and the like to measure your efficiency.

Analyze cost per view

CPV gives you an idea of ​​how competitive your niche is. If you find yourself paying far above your expectations, it's a clear indication that the competition in your niche is getting fiercer. You can track your CPV to understand where to invest. If your CPV goes down, chances are your competition will go down too. You can invest a little more to get your ad to the top.

Make your ads more creative

Realigning your ads with your campaign goals is an effective way to make them more relevant to your audience. YouTube is a platform where content is regularly consumed. When optimizing content, make sure you keep your target audience in mind. This is a crucial factor in determining your YouTube ad costs.

Use advanced campaign settings

Using advanced campaign controls is an effective way to improve your campaign. You can schedule your ads to run on specific days or weeks so your visitors can get used to your marketing methods.

You can also optimize your ads based on your target audience's language and region. Google checks the user's region setting and serves relevant ads.

Advertising on YouTube can be a big bold move for your business.

They open up new opportunities for a larger market to see what you can offer them. You can also broaden your target market by doing this as you can control who sees your ads. You can also scale your advertising plans to a global level.

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The important thing is that you get started, and learning about it is a great place to start.

Granted, calculating the cost of your YouTube ads can be a long process, but the benefits are well worth it. There's a lot to consider when it comes to finding the right kind of advertising. Thankfully, YouTube makes it easy to determine which strategies work and which don't.

Frequently Asked Questions (FAQ)

What's the difference between winning bids and header ads?

Maximum bids are a kind of cost per view. Maximum bidding requires you to pay for ad views or user interactions, but masthead helps you show brand or product ads in a native ad format.

What are the different ads on YouTube?

The various ads on YouTube are display ads, skippable video ads, bumper ads, sponsored cards, etc.

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Why is advertising needed on YouTube?

YouTube is the best choice for advertising because it helps to reach the ads everywhere because people prefer information through video clips. YouTube also helps you track your ads using metrics like views, clicks, CTR, engagement, and more.

Wrap up

Take a moment to understand how YouTube ads work and what contributes to the cost of your YouTube ads. It will benefit you in the long run if you have a good basic understanding of how it works. From here you can try out your ads.

Good luck on your YouTube promotional journey!

Relatives reads:

How important are YouTube backlinks for SEO?

Top 8 SEO Techniques for Lead Generation

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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.

Is paying for ads worth it? ›

Online paid advertising will generate valuable traffic to your website, create brand awareness, increase leads, and make sales.

Is ads worth the money? ›

The short answer is: Yes, advertising is worth it!

If you run an ad in the paper that costs $500 but only 1 new person called you and they only spent $200 on your products or services, that's ineffective advertising that consumed more cash than it generated for your business –that serves nobody well!

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."

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!
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


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