YouTube Advertising Cost: How to Run Ads on Any Budget (2023)

You don't need a big budget for yourYouTube advertising. The important consideration should be the quality of your content. Your video must be of high quality and relevant to yourTarget audience.

With your good video in hand, you can conveniently advertise on this platform without breaking your bank because there is no fixed cost for advertising on YouTube.

Typically, the cost of advertising on YouTube is determined through an auction. This means that as an advertiser, you will have to compete with other advertisers to get your ads to appear in your target market.

In other words, how much you end up paying as YouTube ad cost depends a lot on how many other advertisers are willing to pay that particular amount, or how much the highest bidder is willing to pay is what will determine your YouTube ad cost. Youtube. .

However, you can allocate a budget for your YouTube ad campaign, so you never have to spend more than your budget. Also, you can start with a small budget to see how effective a YouTube ad campaign is for your business.

When you are thinking of advertising inYouTube, the best advice I'll give you is to contact a media buyer or ad agency to get started.

Either of these two can help you create an effective ad campaign and determine the right budget for you, keeping in mind the following determining factors: your budget, average cost, cost per lead, cost per view, andCPMIt will depend on your advertising goals on YouTube and the target audience of your campaign.

#1.your budget: the total amount you will spend directly depends on the budget you set. You'll set a daily budget and predict how much you'll spend on ads over the course of a month. You can set your ad to show on YouTube with a budget of just $1 per day.

#2.YouTube Average Cost Per View (CPV):YouTube ads have an average cost per view of $0.05-$0.30, and the views you get from here count towards your overall YouTube viewer count.

#3.Average YouTube CPM- YouTube Advertising CPM is the total amount you pay for 1,000 impressions of your YouTube ad.

youtube advertising formats

When you enable video monetization, you'll find several types of ads that may appear during or alongside your videos, including:

#1. Skippable Video Ads

These ad types allow viewers to skip video ads after 5 seconds of playback. They are the most common types of YouTube ads and are found on platforms like mobile, desktop, and game consoles.

You only pay for skippable videos that viewers watch for 30 seconds or more (that is, if your video isn't shorter than 30 seconds). The benefit of this is that you don't have to worry about paying people who skipped your video ASAP.

This keeps your ad costs down, but of course, you won't make any profit unless people see your ad, click, and buy your product.

#two. Non-skippable video ads

These types of ads are placed to be viewed before a video begins. These 15-20 second ads force viewers to wait 15-20 seconds before finally seeing the main content.

It makes ads unloved and unpopular and may be removed soon.

When you use these types of video ads, you are charged on a CPM basis.

#3. bumper ads

These ads are scheduled to play for 6 uninterrupted seconds before a video can be viewed. Ad bumpers are enabled when skippable or non-skippable ads are enabled.

Like non-skippable ads, you pay for bumper ad impressions. They are charged by CPM (cost per thousand impressions). As a result, you pay for a bumper ad every time your ad gets 1,000 impressions.

#4. overlay ads

Image or text overlay ads that can appear in the bottom 20% of a video. They are increasingly popular foronline merchantsto generate leads, brand awareness and sales.

They can only be viewed on computers.

Overlay ads offer advertisers a great way to drive traffic to their YouTube channel or website. For this to work on your YouTube channel, you must first saturate and fill it with engaging and entertaining videos.

In addition, you would also like to create a fascinating welcome video to encourage people to stick around the moment they clicked on your channel.

#5. display ads

These ads appear to the right of the main video, above the list of video suggestions. Display ads are a worthwhile investment for a business. They produce widespread and targeted exposure across the web and are only displayed on the desktop platform.

If you can correctly guess thekeywordsin your niche that people are always searching for, you can create a matching video to go along with the keywords. By doing this, your ads will appear just as relevant to search engines as other featured videos on YouTube.

Display ads are less popular with advertisers because they don't overwhelm the main videos that users are watching. However, these ads can still generate positive returns for your ad campaign.

With this type of ad, you can pay as little as 3 cents per view when you promote a video here.

#6.sponsored cards

These types of ads pull content that is relevant to the video, such as the products featured in the main video. These cards act as teasers to whet the viewer's appetite to continue with the video.

#two. Defining your target audience for your YouTube ads

Defining your audience helps regulate the cost of your YouTube advertising, but at the same time, it ensures that you get enough clicks from the people your ad is targeting to make your campaign journey worthwhile.

The more targeting options, the narrower your target will be. We recommend two or three targeting options for a target group.

Consider thinking in terms of keywords. What terms is your target audience likely to use when searching for products on yournichesin youtube?

The more attention you pay to this, the less avoidable expense you'll have from users who watch your videos but don't take any steps in the sales funnel.

On another level, if you're selling products aimed at middle-aged men, avoid targeting the video search terms most used by teens.

You can also view other target demographics. If you sell your products in only one country, avoid worldwide advertising. Also, you may want to limit your ad to countries where the majority of people speak English.

All of these measures, when closely monitored, can drastically reduce YouTube advertising costs.

#3. Creating your YouTube video

Companies often discover during video creation that they account for the largest proportion of YouTube's advertising cost. This, of course, depends on the level of finesse and professionalism that goes into making the video.

However, on average people spend anywhere from a few dollars to millions, so it honestly depends on what you want to achieve and how much support you have to achieve it.

Keep in mind, however, that if your video is of low quality, people will skip it long before it hits the twelfth. A low-quality video doesn't tell your brand story or, at best, presents it in a poor style.

While some companies can safely get away with a $5000 home video. Others will look miserable unless they invest $100,000 in the video creation process, employing professional actors, equipment and production values.

Keep in mind that YouTube is not the same as traditional television, where a viewer can't skip the ads no matter how much they don't enjoy them. Therefore, your YouTube advertising videos should be eye-catching and colorful.

The more inventive you are with your video ad, the less reason viewers will have to use skip buttons when they find your ad.feliz.

#4. Offers

The key to leveling the cost of YouTube advertising is the need to bid for ad placement. When using YouTube, prices are not dictated to you, you choose for yourself how much you want to commit to your campaign. You don't get any fixed price and you take it from there.

By specifying for yourself a daily budget in an amount that you are comfortable with. At first, most businesses settle for at least $10 a day for their YouTube ad campaigns, and only when they dominate the ground do they increase the bids to higher bids.

Most advertisers tend to bid based on CPV (cost per view). This means that you are willing to pay up to your bid amount for each view.

You can also set a maximum amount that you are willing to pay per day. This ensures that you don't find yourself in a shock pool if more people see your ads than you expected, thereby maximizing your bid limit.

To control the cost of your advertising on YouTube, you'll be asked to set a maximum cost-per-view bid. YouTube will provide a typical offer category; this will depend on how much you have limited your audience in your targeting.

YouTube CPM: what is it?

CPM, or cost per thousand, shows how much advertisers pay content creators for every 1,000 views. For example, if you get 200,000 views and have a CPM of $10.50, your total revenue per video will be $2,100.

That's your ROI, right? Hell no, YouTubers can't pocket everything, otherwise how would the search engine get paid? So, to compensate itself, YouTube takes a whopping 45% cut, which is an insane cut, you'll say, leaving your actual return at $1,155.

oops! Sorry I forgot to let you know Uncle Sam (US Government) gets a bite out of these bounces too.

So, to surprise you even more, if you didn't know this before, know now that not all views are monetized, so you may not get paid for every eye on your YouTube ad. It is clear? Let me clarify.

Some views you count are repeat views (someone who saw your ad and saw it again). And again, others don't count because viewers haven't watched for at least 30 seconds.

To calculate the actual cost of CPM, I recommend using acpm calculator. It allows you to enter your cost to find out how many impressions you'll get, or enter how many impressions you want and find out how much it will cost you.

Conclusion

If you're looking for ways to help your business reach new users and expose them to your brand, YouTube is the answer to your search. This social business platform will help you connect with people who are looking for a business like yours.

This material has comprehensively covered all the determinants of YouTube advertising costs, so if you're ready to start getting more valuable leads with your advertising campaign and optimizing your YouTube advertising cost.

It's up to you to decide how much your YouTube advertising should cost. Deciding your budget and maximum bids will allow you to spend the exact amount you want.

The key is determining how bids should be priced to achieve the desired goals for your campaign. Once it's in place, you're ready to go.