You might not know it, but the advertising cost for YouTube Ads averages at $200 for every 1,000 views. And that's just one of the many impressive YouTube statistics!
Although that’s just a rough average based on various niches and industries, it should still give you a good idea of how much people are willing to pay for YouTube advertising.
With over 72 hours of video being uploaded to YouTube every 60seconds, YouTube is incredibly vast and bring in hundreds ofmillions of users every single day. No matter what niche you’re in, there’s agood chance people are posting videos about it on YouTube.
If you want to engage with your audience and showcase your products and services, then YouTube advertising is often an untapped source. While your competitors focus on Google Ads and display ads, YouTube is usually open for the taking.
But how much do you need to advertise on YouTube? And what affects the YouTube advertising cost?
In this article, we’ll be covering all the essential aspects of how much YouTube Ads cost and what you should budget.
To get things started, why should you be advertising with YouTube video ads in the first place?
Why Advertise On YouTube
The first YouTube video was uploaded on April23rd 2005, and since then, YouTube has exploded as the number one place to hostvideo content. Nowadays more than one billions hours of YouTube videos arewatched every day and for some demographics, it’s become more popular thanwatching TV.
With YouTube influencers gathering tens of millions of views every month, YouTube advertising platform is now a valid marketing channel for many big brands.
By running ads on YouTube videos that yourtarget audience watch, it can be an excellent way to get your brand in front ofthe right viewers. And with excellent data analysis tools available for YouTubevideos, advertisers can be even more confident they are spending their money onthe right videos.
But how can you be sure people will watch yourYouTube ads? Well, unlike TV, users can’t skip them. (Unless they are usingAdBlock but then you won’t be charged). In recent years YouTube has actuallytoned up the aggression on their ads, making it so users must watch around 5seconds before they can skip them.
Of course, if you create the right ad and pick the right YouTube channel, most users won’t want to skip your bumper ad as it will be so relevant to them! This ability to target viewers with such precision is just another reason why YouTube advertising is growing in popularity.
How Much Does YouTube AdvertisingCost?
If you want a simple answer to how much YouTube ads cost, then you’re going to be disappointed.
With so many different factors to consider, it can vary greatly depending on the video ad type, location, niche, and length of the ad. Not to mention that with seasonal changes, economic changes and increasing competition, the costs can change quite quickly.
Current statistics show that the average YouTube ad spend can be anything from $0.05 to $0.30 per view. That’s anywhere from $50 to $300 per every one thousand views.
The type of ad that you run also plays animportant part in the overall cost, which we’ll be covering later. But withseveral different ad types out there, each one has aunique pricing structure compared to the rest.
If you’re just starting a YouTube video adcampaign for the first time, then you should be looking to spend severaldollars a day at least. As your campaign grows, you’ll be able to increase yourexpenditure, but when you first start, you’ll want to make sure you can getsales.
There’s no point investing thousands ofdollars in YouTube advertising only to find out your targeting or ads arewrong.
YouTube Ads Cost Factors
Just like display and search ads, YouTube ads have various different cost factors. This means that businesses advertising in the tech industry will most likely have a completely different cost than someone advertising in real estate.
But what’s the difference between paying 5cents for a view and 30 cents for a view? Here’s what you need to know aboutYouTube ad costs.
Location Targeting
As with any advertising network, the locationof the target audience plays a huge role in how much you pay. Countries areoften split up into different tiers depending on how valuable and profitabletheir traffic is for advertisers.
It’s no secret that users in America have moremoney to spend than people in less developed countries. Hence why ad networksoften charge more for American traffic over other countries.
The simple reason is that with a limitedamount of supply, advertisers are continually bidding against each other forthose available views. And often, over the year this demand can peak and troughwith the biggest spending happening at Christmas.
How much does YouTube advertising cost? Wellfor starters it depends on the location you are targeting. Views from moredeveloped countries always cost more than views from lesser developedcountries.
Audience Targeting
In order for an ad campaign to be worth the money and successful, advertisers need to be able to target specific audiences in YouTube advertising. Just like with location targeting, the audience you are trying to reach can also be a big YouTube ad cost factor.
Targeting an audience in the entertainmentindustry is most likely going to be cheaper than targeting users in the financeindustry. The reason goes back to supply and demand.
Businesses in the finance industry are likelyto be advertising mortgages and loans that have huge payouts for them. If theymake several hundred dollars per sale, then they can afford to spend more onadvertising to get that sale. Combine this with several companies all biddingfor the same audience, and it’s easy to see why targeting viewers in thefinance industry costs more.
Ad Type
If you thought YouTube only had one ad type, then you’re wrong. It might be hard to distinguish the difference between them, but actually there are several between the main YouTube ad formats.
The main differences between them are if theyare skippable or not.
Skippable video ads are shown for five seconds before the viewer can choose to skip it. Advertisers are charged on a cost per view bidding system when a viewer watches 30 seconds or the full duration of your YouTube ad. This means that if they skip it and don’t watch 30 seconds, you won’t be charged. Typically these types of ads cost less as fewer people sit through and watch skippable ads.
Non-skippable video ads are video ads that are up to 15 seconds long and are not skippable. As you can imagine, with no ability to skip this YouTube ad, this means they cost more per view.
If your entire YouTube advertising campaign ismade from non-skippable ads, then you can expect to pay more than someone who’srunning only skippable ads.
Get The Most Out Of Your YouTubeAd Campaigns
As you can see by now, the cost of advertisingon YouTube can vary greatly depending on a number of factors. If you want toget the most of your YouTube ads, then planning ahead and scaling your campaignis vital.
Every YouTube ad campaign should start out with a small daily budget to ensure that your targeting options are working correctly. The last thing you want is to spend thousands of dollars only to find out you have a problem.
You may also find that your targeting options in YouTube advertising aren’t as well defined as you thought they would be, and your ads are showing up on the wrong videos.
If you are new to YouTube advertising and have never run a YouTube ad campaign before, then starting small and slow is your best chance of success.
Since advertising on YouTube can get expensive very fast, you want the foundations to be working before you even consider scaling your campaign. This might mean adjusting your targeting, ad types, or even YouTube ads themselves before you start to see traction.
A final note about advertising on YouTube isto give it enough time. If you really think it could be a good advertisingchannel for you, then you need to commit to it. Running a campaign for a fewdays and stopping it is not enough time. If you want to get the most out ofyour campaign, you need to run and tweak it consistently for several weeks at aminimum.
Hopefully, this article has given you an ideaof how much YouTube advertising costs. It might not be the exact answer youwere hoping for, but you should be able to appreciate how estimating YouTubeads costs is no easy task.
