YouTube is one of the platforms where advertising is most effective.
With no less than 2 million active users per month, the sales opportunities are very high for advertisers.
Statistics say that 90% of users discover branded products on YouTube.
And taking into account that it is one of the main search engines and Google, people usually look for tutorials, comparisons, and reviews on YouTube before making a purchase decision.
Advertising on YouTube has become quite a viable option.
But how much does an ad on youtube cost? What is the standard price?
We will see it throughout the article.
Price of advertising on YouTube
The first thing you should know is that the price varies according to various factors when it comes to advertising on YouTube.
These are:
- The type of ad.
- The size and quality of the audiences you are targeting and whether they align with your campaign’s objective.
- The budget amount you are willing to bid.
- The competition.
And it is that no matter how well you define your target audience and your ads have a very careful design and copy if you do not invest enough. If you stay below the average, you will not show your ads because your competition will go in front.
The number of advertisers you compete with and the dates you launch your advertising on YouTube campaign type are also influenced by the number of advertisers you compete with.
For example, the price of your ads on YouTube will not be the same in May as it is in November, with Black Friday.
Knowing when your competition usually invests in advertising has a lot to do with the business model and what you sell.
And if you do it at the same time as them, the demand increases, and the cost of the campaigns will be much higher.
So, we conclude that we cannot define the advertising price on YouTube concretely.
It depends.
However, there are some approximate figures, and I will comment on them throughout the post so that you can get an idea.
Formats and price of ads on YouTube
As I told you that the ad format also influences the price of advertising on YouTube; let’s see the types of ads that you can use in your campaigns:
Non-skippable in-stream ads
This type of ad is a short video (about 15 seconds or less) that users cannot skip.
It can appear before the organic video starts, during, or after.
And how much does a non-skippable in-stream ad cost?
Well, YouTube will charge you based on impressions (CPM).
That is the number of people to whom the ad appears.
Skippable in-stream ads
A format similar to the previous one can skip only this one.
Specifically, once played 5 seconds, you can afford to use ads of longer duration.
Youtube will charge you when the user has seen 30 seconds of the video or the entire video (if it lasts less than 30s).
Or if the user clicks the button or CTA and interacts with the video.
It depends on what happened before.
TrueView Video discovery
This type of ad appears according to the user’s searches.
It is similar to how the Google Ads account works since it activates and displays ads based on keywords, and they appear in the first positions of YouTube results before organic content.
Although they can also appear on the home page and Google partner websites.
It is an ad made up of a thumbnail image and a description of up to 3 lines of text, along with the call to action button.
What is the price of this Youtube ad?
The platform charges advertisers based on clicks on the thumbnail to play the video.
Out-stream ads
These ads only appear on mobile devices, on Google partner websites, also called the Display Network.
That means that they are not shown on the YouTube platform itself.
They can be from banners, in-feed ads, and full-screen ads.
And they play automatically with the sound off.
YouTube charges for this ad format based on impressions, so advertisers will pay for every thousand users who watch the video for 2 seconds or more.
Advertising bumpers
Bumpers are very short YouTube videos that can be played from any device, cannot be skipped, and have a maximum duration of 6 seconds.
They are always played before watching a video on YouTube and are sometimes combined with the skippable ads in a single video.
That is, two advertisements appear in a row in a different format.
YouTube determines the price based on impressions or views.
YouTube Masthead Ads
Masthead ads are banner ads that appear as the cover at the top of the page on YouTube and are displayed on any device.
Big brands usually use this format since its price is much higher than the rest.
The company in question occupies the entire front page of the home page on Youtube, and no other advertiser appears, so it is a privileged position.
The cost of these types of ads is determined based on impressions every 24 hours.
How much does an ad cost on youtube?
Now that you know the options to advertise on YouTube and what factors influence the price of advertising, let’s talk about numbers.
As you have seen, YouTube usually charges for your campaigns following some main metrics, although there are some more:
- cost per click
- Cost per video view
- Cost per impression (times displayed)
A system is very similar to the rest of advertising on YouTube platforms such as Facebook and Instagram Ads or Google Ads.
What does this mean?
The price of the ads will depend 100% on how the audiences you are targeting act.
If someone sees your ad in its entirety or clicks on the button that leads to your website or app (it directly depends on the campaign objective you choose – reach, web traffic, or sales, among others), you will pay for that action. Of course, they are charged per thousand in the case of impressions.
So, once you know this, how much does advertising on YouTube cost?
The average price is usually around $0.10 (between €0.05 and €0.10) and $0.30 (between €0.20 and €0.25) per view or click. It places the daily budget at about 10 dollars or euros, the minimum recommended for each advertising campaign.
You can choose to determine the budget day by day or define how much you want to invest in total for your campaign.
However, it is always recommended to use daily bids, as you will be able to optimize your ads better and have more control of what you spend.
Tips to optimize the cost of an ad on YouTube
1 – Have the channel optimized before advertising (profile image, cover with personalized design, created labels, brand description, links to social networks)
2 – Upload the videos you will use in your previous ads on the platform.
You can do it publicly and visible to users at the organic level or hidden, but never privately.
3 – Link your YouTube channel with Google Ads to be able to manage your campaigns from Google AdWords.
4 – Use short videos and, if it is of a longer duration that can be skipped, try to get users’ attention in a creative way for the first 5 seconds so that they stay to see the rest of the ad.
In those first 5 seconds, use the main keywords of what you sell and mention the brand in some way to create a memory in the user.
5 – It may seem obvious, but use quality videos: no pixelated ads or a crappy recording.
6 – Use storytelling to entertain the user, telling stories that you can naturally link to what you sell and with which they can empathize. The idea is to arouse emotions.
7 – Includes a clear, simple, and direct call to action, with which the user quickly knows what to do and how.
8 – Make sure the landing pages or landing pages you link to in your ads are optimized. Good loading speed, everything works correctly, and a copy worked to maximize conversions. It will result in a good user experience, or you will be paying for clicks that do not convert when arriving at the website.
9 – Define your target audience very well. The first thing is to be clear about who you want to impact your ads and which profile of people is more likely to buy from you.
Even if you choose a specific audience, you will show your ads to those people within that audience who are more likely to act according to the objective of your campaign (watch the full video, go to the website, and purchase YouTube).
In your YouTube ads, you can segment based on demographic data, interests, themes, search engine keywords, or remarketing to audiences belonging to your database (subscribers, website and social media visitors, customers)
10 – Don’t stop analyzing metrics and measuring your campaigns to optimize them.
It is important to see what is working and what is not to maximize performance and reduce costs.
Is it clear to you how much it costs to advertise on YouTube?
I hope I have helped you with this post to understand how the price of advertising on YouTube works and how much an ad can cost you.
Still, please stay with the idea that it depends on many factors, and you can’t lock in a fixed price.
Because YouTube, like other advertising on YouTube platforms, learns from experience.
And the more you invest, the more information it will collect to distribute your budget on subsequent occasions better.
Also, everything is based on strategy.
You can already invest thousands of euros in your campaigns, but if you don’t design a good sales funnel in your advertising strategy, you will be impacting with blind ads and getting very few results.
Companies and brands are so demanding digital professionals such as digital traffickers to manage their advertising campaigns.
These not only create the ads and configure the campaigns but also design the strategy to be followed to impact the right people with ads in the right way.
Have you already created your first advertising campaign on YouTube, or are you excited now that you know its prices?
Conclusion
So advertising on YouTube, We hope you enjoyed this blog post about how much it costs to promote an ad on YouTube.
YouTube ads are a great way to promote your business online.
To make these ads successful, you have to have a strong plan. As soon as you decide what type of ad you want to run, you can get a quote from YouTube and get started on promoting your ad like a pro! If you have any questions, please don’t hesitate to reach out to us at ___.
Thank you for reading, we would love to hear from you!