YouTube Advertising Costs
YouTube video ads cost $0.10 to $0.30 per view or per click. Reaching 100,000 viewers costs $10,000 – $30,000. Most companies invest over $10 each day on YouTube ads. On average, YouTube ads cost $5,000 considering shooting costs and advertising. In-stream ads cost $0.10 to $0.30 per view based on audience and goals.
Tips for Your Ad Campaign
- Determine whether to produce your ad in-house or outsource production. In-house production allows you to fully control concept, video, and distribution. Outsourcing may save costs.
- Be realistic about advertising goals before starting a campaign. Set a goal to maximize results while controlling costs.
- Utilize YouTube’s audience size and targeting options for reaching your target audience. Key advantages of YouTube ads include:
- Almost one-third of Internet users visit YouTube.
- Mobile YouTube ads hold better attention than TV ads.
- Most 18-44 year old American Internet users visit YouTube.
- 68% watch YouTube videos before purchases.
YouTube’s Monetization and Payment
- YouTube doesn’t pay a fixed amount for ads. Rates per ad view range from $0.01 to $0.30, averaging about $0.018.
- Two types of ads can show on videos: Cost-Per-Click (CPC) and Cost-Per-Mille (CPM), with payment usually through AdSense.
- Highest-paid YouTubers like Mr.Beast, Jake Paul, and Markiplier earn significantly more than the average YouTuber.
- Multi-channel networks (MCN) operate separately to pay their affiliates.
- Revenue Per Mille (RPM) is what creators earn after YouTube’s cut from CPM.
Understanding Ad Pricing on YouTube
- YouTube follows a cost-per-click and cost-per-view pricing model.
- Set a daily budget, starting at $10 per day, and adjust based on experimentation.
- Engagement with ads determines payment, such as watching a skippable ad for 30 seconds or clicking a Call to Action.
- You’ll find about 2.4 billion active users and about 1 billion monthly viewers on YouTube, making it a powerful advertising platform.
- YouTube allows advertisers to measure ROI and only requires payment when there is engagement with the ad.