How Much Does YouTube Advertising Cost?

kashif ali

  • Apr 04, 2022

YouTube Advertising cost depends on a few factors, including audience targeting, campaign objective, and watch time. On average, though, YouTube advertising costs are $0.10 to $0.30/view or action, with an average daily budget of $10. So, this means every time someone views your ad or engages with your Ad like by clicking on a call-to-action, you pay around $0.10 to $0.30.

Do you know that more than 2 billion logged-in users visit YouTube monthly?

The massive audience on YouTube is making advertising on the platform a go-to strategy for many businesses today. If you are thinking of advertising on YouTube though, you probably have that one BIG question in mind – how much does it cost?
Normally, the YouTube Ad costs of a business are $0.10 to $0.30 per action or view, with an average daily budget of $10. Per action or view means when someone engages with your Ad by clicking on it or simply views it – you will be paying $0.10 to $0.30.
This YouTube advertising rate is only an average, though, so your company may pay more or less.

To get more general information about Social Media Marketing and advertising costs, you can explore our website or call us at 0300-800-2094 for speaking to a strategist.

Social Media Marketing

Are You Ready To Learn More About The Cost Of Advertising On YouTube?

Keep reading! This blog on the pricing of YouTube Ads covers the value of advertising on the platform, the factors determining Ad costs, and how creating them makes the most out of a business’s budget.

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How Does YouTube Ad Pricing Work?

YouTube follows a cost-per-click and cost-per-view pricing model, which is similar to its parent company, Google. The pricing model means that the rates of YouTube Advertising are dependent on the actions of users.

For example, if someone watches your complete Ad or clicks on it, you will be charged for their actions. Whether you pay for the clicks or views depends on the type of Ad you choose to create. So, the real question is – how much do YouTube Ads cost when someone watches them or clicks on an Ad? Find that out in the next section.

If you need help getting started with your Ad campaign, contact us online TODAY!

YouTube Ad Pricing

How Much Does Advertising On YouTube Cost?

When advertising on YouTube, there is no limit to the amount that you have to spend. This leads to two questions – how much should be spent on a YouTube Ad and how much is the cost of advertising on YouTube?
The amount spent on an Ads campaign depends on the daily budget a business sets for it. Mostly, businesses invest $10 or more a day to run an Ads campaign on YouTube. The amount increases as they start knowing about the performance of their campaigns and get the hack of advertising.
Running video Ads on YouTube can cost anywhere between $0.10 to $0.30 per view or click.
In most cases, as a business, you will be paying on a cost-per-view scale. In simpler words, this means that whenever someone views an Ad you are running, you will be the one paying for the view. Hence, setting a maximum amount you want to spend on videos is important because it ensures that you are not overspending the campaign budget.
Though the cost mentioned above is not standard every time, it is a typical rate that businesses have to pay when they invest in YouTube Marketing Services. Moreover, the prices of YouTube Ads vary depending on the quality of videos, campaign goals, and the target audience.

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What Determines Your YouTube Ad Costs?

There are a few factors that determine how much a YouTube Ad will cost, including:

  • Ad Type
  • Bid
  • Bidding Selection
  • Targeting Options

Generally, the above-mentioned factors influence the rate of YouTube Marketing and advertising in different ways. For example, your bid will likely have more of a direct impact on your YouTube ad costs than your bid selection because you’re setting a definitive number for what you are ready to pay for a view of click willingly.

YouTube Marketing Services

Learn more about YouTube Pricing Factors, like ad type, below!

How Different Types Of YouTube Ads Influence Advertising Cost?

The format of a video influences the cost of a YouTube Advertising campaign. Generally, you will have to pay more for increased Ad exposure and big advertising space. Here are the different kinds of YouTube Ad formats that a business can use:

  • Display Ads: These are the advertisements that appear on the right of the feature video in the list of suggestions.
  • Overlay Ads: Semi-transparent advertisements that overlay videos. They appear in the lower 20% portion of a video and give the viewers an option to “X” them out after they pop up.
  • Skippable or TrueView InStream Ads: Such kinds of Ads appear during, before, and after the video content. They take up entire of the video box but there is a countdown timer that generates a skip button that allows skipping the Ad. It typically appears after the Ad has played for five seconds.
  • NonSkippable Ads: Viewers have to watch these video Ads before viewing the actual content. However, they are short and typically last only for a few seconds.
  • Long & Non-Skippable Ads: These kinds of Ads have to be played till the end, cannot be skipped, and last up to 30 seconds or longer.
  • Bumper Ads: Lasting up to 6 seconds in duration, these Ads have to be watched before the viewers can see the video content. They get straight to the point and spread the message quickly.
  • Sponsored Cards: They display information relevant to the videos. Businesses can run Ads for featuring products that are about to show up in the video content. Therefore, giving the audience a teaser of the product for some seconds, which engages them for longer.

YouTube Video Marketing.

All these different formats of YouTube Ads influence the advertising cost. Some of them even have different options for payment because of the actions taken by the target audiences. In some cases, you might even have to pay them for seeing your video and in another case, you will only have to pay after they watch the Ad for 30 seconds.

Moreover, the type of audience you are targeting also influences the pricing of YouTube Video Marketing. For example, if your target audience is the same as that of your competitor, you will surely end up having to pay more because the competition for the Ad spot is high.
However, the sigh of relief is that you will never pay more than the maximum bid. Depending on who gets the BEST spot, you might have to pay 1% more than the competitor, but it never goes above the maximum bid.
For example, if your maximum bid is $1 and the competitor bids for $0.65 per click. Expect that you are not going to pay more than $0.66 per click in any case and it will be in your maximum bid of $1.

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How Can You Set Up YouTube Ads That Make The Most Out Of Your Budget?

YouTube advertising has a powerful impact when it comes to helping the target audience learn more about your business. Here are the steps that you can take for creating a powerful YouTube Ad and optimizing the cost of advertising.

1. Choose Who Runs Campaigns

Video advertising campaigns take effort and time. So, if you want to drive the BEST results out of your YouTube Social Media presence and advertising campaigns, ensure that the right people are working on it. You can opt for creating and running the Ads in-house. If you have marketers on board, ask them to create and run the Ads.
However, if you choose to run the campaigns in-house, the budget will be based on how you choose to run the Ads. For example, if you plan to run 1-minute long Ads and pay for the audience to watch 30 seconds of your Ads, determine how much is it worth to your business. It might be worth $0.50 per click or $1 per click for your business, but You are the one who has to decide.
Some businesses opt to get YouTube Marketing Services in Pakistan that we provide at Xcentric Services. This is the safest option as we have professionals on board who handle the campaigns like a pro. And, the option is also great for those who do not have the experience to run video marketing campaigns or are simply too busy running the business.

Are you ready to get on board with Xcentric because all of this sounds convincing? Contact us at 0300-800-2094 or drop a query at connect@xcentricservices.com TODAY, speak to a strategist, and get your advertising plan.

When you hire us, expect to pay some dollars but also wait till you see those sales coming in like crazy. Though overall, the cost of Ads depends on the length of videos, camera angles, words in the script, and more.

2. Set The Target Audience

The target audience is who you want to reach out to with the advertising campaign. If we say it straightly, to make your campaigns work effectively, you need to know who you are targeting. There are many ways you can target the ideal audience – here are some:

  • Interests – information and topics that your audience is interested to watch through the videos on YouTube.
  • Topics – targeting people based on the specific topics that they are looking for while they Search YouTube.
  • Remarketing – marketing people based on the interactions that they have taken in the past on your video content.
  • Demographic Groups – include attributes like gender, parental status, income, or age.
  • Keywords – showing Ads on YouTube based on the phrases and keywords the audience searches.

These are all the available options for your business based on the goals and your budget. However, if targeting the right audience is sounding like a tricky task to you, get our YouTube Promotion Services. Our marketing team will segment your target audience and target every Ad precisely.

YouTube Social Media

3. Make High-Quality Video Ads

For seeing the best results with your YouTube Ads, creating high-quality content is important. You want the audience to watch the Ads you place and engage with them and to make that happen, you need to invest in the quality of your videos.
Firstly, you need to produce high-quality videos because no one would want to see a video that is low-resolution and filmed poorly. With the continuous advancements in film technology, expecting high-quality Ads is natural.
Moreover, YouTube Ads should also provide value to the target audience. So, if you do not show value to the audience in choosing your business, there will be no impact on them. Hence, when running a YouTube Ad campaign, plan the content of the Ads for ensuring that they provide the target audience with useful information. Set goals you are looking forward to achieving with advertising on YouTube and place Ads that help pass your message effectively.

4. Keep Ads Short

Ads that are too long daunt people or drive them away. Mostly, this happens with video Ads that are non-skippable. If you have non-skippable videos that are long, people may lose focus and not watch them.
Creating effective and short videos drives better campaign results. So, as a rule of thumb, the videos you create should be of 45 seconds or less. The cherry on top? Following the rule will also get you time for creating high-quality videos without them getting too long.
The catch for advertising on YouTube successfully is delivering the message or point across quickly. If the videos can be skipped within 5 seconds, ensure that the message is delivered within those few seconds. All in all, a YouTube Marketing Strategy needs to be precise and should deliver the message clearly.
YouTube Marketing Strategy

5. Create Related Landing Pages

Whenever you run a YouTube Advertising campaign, directing the audience to relevant information is important. Connect them with landing pages that expand the information given in your Ads. Using this effective way of advertising allows directing leads to specific pages and eventually converting them into SALES.
Overall, creating related landing pages and directing the target audience there helps them learn more about the services, products, and business. So, create specific landing pages for each of your campaigns and customize them with information relevant to the YouTube Ad. They are a great way for directing relevant leads to a page or website.

6. Monitor The Campaigns

To understand the effectiveness of your campaigns, you need to monitor their performance. After all, pushing out high-quality Ads content will not only get you views but also help your business grow.
When running an Ad on YouTube, you get access to metrics that enable seeing how a campaign is performing on the platform. From likes to views, shares, and subscriptions – the metrics will let you monitor it all.
Moreover, to understand the campaigns better, advertisers can also see real-time insights. Overall, monitoring a campaign allows for producing better results for a business as you can tweak it when the results are not satisfactory by just looking at the metrics.

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 Why Advertise Your Business On YouTube?

Even though you now know the answer to how much advertising on YouTube costs as well as how to set up an effective campaign on the platform, doubts can be there. Is it worth your time, money, and effort? YES!
Advertising your business on YouTube has several benefits, which these statistics prove:

  • YouTube reaches almost 1/3rd of the internet
  • Mobile Ads placed on YouTube are 84% more likely to hold user attention
  • 90% of internet users around the world between the ages of 18 to 44 use YouTube
  • 68% of the users on YouTube watch informational videos when making purchase decisions

When a business advertises on YouTube, they get instant access to a massive target audience. The audience size makes it easy for them to reach the target audience via the targeting options provided by the platform. Comparatively, advertising on small platforms limits access to valuable members of the target audience.
The targeting options on YouTube allow the creation of relevant Ads for the users, which is why they are known for performing better than traditional advertising ways – like TV. Even more, you can also use its targeting options for reaching out to users at the perfect time, when they are researching for making a purchase.
While creating a YouTube Ad is easy and fast, you can still partner with a Digital Marketing Agency like Xcentric Services to achieve the BEST results out of Ads campaigns.

Digital Marketing Agency

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    Ready To Earn Better ROI From Your YouTube Advertising Campaign?

    YouTube is an excellent platform to be on for expanding the reach of your business. With its advertising options, you can garner more leads. At Xcentric Services, we know how to create YouTube Advertising Campaigns that help your business grow.
    In the past five years, we’ve driven over $2.8 billion in sales for our clients through our various Digital Marketing Services. We know the art of creating customized online marketing campaigns that deliver meaningful results for a business.

    If you’re ready to start advertising on YouTube and making the most of your YouTube advertising costscontact us online at connect@xcentricservices.com or call us today at 0300-800-2094 to speak with a strategist.








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