Even though you know the answer to the question, “How much does it cost to advertise on YouTube?”, you may have doubts about advertising on YouTube. Advertising on YouTube offers several advantages, which these statistics demonstrate: YouTube reaches almost one-third of the Internet.
YouTube Ad Cost Factors
In this blog, you’ll understand how much YouTube ads cost and the factors associated with the cost of YouTube ads. YouTube is the world’s second most popular search engine. There are about 2.4 billion active users of YouTube and about 1 billion monthly viewers.
YouTube ads can deliver great results, but many creators and startups have a limited marketing budget. They are reluctant to spend money on a video and run ads because they think it will be too expensive. Related Blog: How to use YouTube hashtags to increase your views.
How much your YouTube advertising costs will also be dependent upon how much you’re willing to bid for a specific ad placement. This is because YouTube ads are based on a bidding scheme. Before you select your bidding options, ensure you’ve already set up your targeting, since this will further determine your YouTube ad cost.
Often, you’ll be bidding on cost-per-view (CPV) or cost-per-1,000 impressions (CPM). This means you’ll only pay if someone views your ad for more than 30 seconds or interacts with it, depending on what occurs first.
Influencer Marketing Hub estimates that YouTube ads can cost anything between $0.10-$0.30 per view, with a $2,000 average cost to reach 100,000 viewers.
A view is counted when a viewer watches 30 seconds of your video or interacts with it by clicking on it. If your video is shorter than 30 seconds, a view is counted if a viewer watches the entire video. The exact cost for running a YouTube ad campaign is influenced by these factors: Targeting, Bidding, Ad formats.
Budgeting Your YouTube Ad Campaign
On average, it costs businesses $10-$50 per day to run a YouTube advertising campaign. The cost per view (CPV) can range between $0.10-$0.30, depending on the industry and target keywords. To reach 100,000 viewers, it would typically cost around $2,000 on average.
On average, 1,000 YouTube ads will cost between $5 and $20. The exact price will depend on the budget you set, your location targeting, and the audience you’re targeting.
Now that you understand some YouTube advertising cost benchmarks, let’s talk about some ways you can keep your costs low while maximizing your results:
- Be realistic about your YouTube advertising goals.
In our "How much money do you need to run YouTube ads in 2022" vlog shown below, we mentioned you can get started with a minimum budget of $2.5k USD (if you are considering YouTube Advertising in the US market).
YouTube’s ad placements work like most of Google’s ad products: through a bidding system. With some ad formats, you can pay-per-click (PPC). It doesn’t matter how many people see your ad. You only pay for the people who actually click on it.
Unlike Google Ads, where you can leverage a more traditional Cost per Click model to predict your budgets, the three types of bidding strategies on YouTube Ads are Cost per Thousand Impressions (CPM), Cost per View (CPV), and Maximize Conversions. With CPV bidding, a view counts when a user watches 30 seconds of your video, the full video if it’s less than 30 seconds, or interacts with the ad itself.