YouTube is the number one video streaming platform with over 30 million daily users, ranking it among the top 5 social media platforms used by marketers for advertisements. Advertising on YouTube helps to create brand awareness and at the same time grow your audience by drawing traffic to your brand. However, there are marketers who want to advertise their brand but are considering the costs of YouTube advertisements. In this article we shall see How much do YouTube adverts cost?
YouTube advertisements cost between $0.03 – $0.30 per view, and on average for 100,000 views it costs $2000. The YouTube views are counted when users watch 30 seconds of your video and if the video is less than 30 seconds, views are counted when the video is watched till the end. There is, however, more to the way YouTube advertisements cost. This article has everything you need to know about the cost of YouTube ads. Scroll down the paragraphs below for further details.
What factors affect the cost of YouTube advertisements?
The exact cost of sponsoring or running advertisements on YouTube is determined by some factors, which include;
• Bidding
• Targeting
• Ads format
• Bidding.
How much YouTube advertisements cost is influenced by the number of other people who are bidding for the same advertisement placement since YouTube placements work through the bidding system.
How to set bids for advert placements?
Since the amount you’ll spend on YouTube adverts depends on how much your bid for each advert placement, how then do you bid?
YouTubers are charged if a viewer watches the advertisements for more than 30 seconds for a 1-minute video or if the viewer interacts with the advert by clicking on the link whichever happens first. Also, if the video is less than 30 seconds and the viewer watches everything, it counts as a view. Based on the YouTube adverts, YouTubers bid on a cost-per-thousand or cost-per-view.
Some YouTube advert formats are such that you can opt for, pay-per-click, either the viewers watch the video or otherwise it doesn’t count. You only get to pay for the viewers who clicked the advert. To set up your adverts, you’re advised to set a bid that is in line with your budget. YouTube displays a variety of bids that will range in cost depending on your targeting.
Targeting
Targeting is simply reaching out to the right kind of audience with your advertisements. YouTube can target your ideal audience in the right location at the right time. The cost of advertisements on YouTube depends on the audience you’re targeting. Some audiences are more expensive to target than others. There’s the need to target your audience according to your budget.
There is a wide range of targeting methods that you can use to reach your target audience or niche based on what they’re interested in, their location in the world, their choice of content, and their age grade. By placing YouTube adverts with the right audience, your advertisements have been programmed to be viewed by those who are interested and might show interest.
Ads Format
YouTube has different ads formats which are priced differently, the ad format depends on your brand type and your target audience. Ads formats are a great way to strike the balance between the act of budgeting and marketing. Check out some of the different Ad formats;
Bumper Ads
These ads are 6 seconds long and cannot be skipped by viewers and their bidding is based on cost-per-thousand. These ads usually have Call-To-Action (CTA) links such that after explaining the ads, the viewers would want to click on the link which leads them to your brand website page. This ad costs more since the ads cannot be skipped.
Non-Skippable Video Ads
According to its name, it is non-skippable and usually lasts between 15-20 seconds. It is placed before, during, or at the end of the video to ensure that the viewers watch and interact with the ads before watching their video. These ads cost so much because each time people watch the ads either they interact with them or otherwise, you get to pay.
Display Ads
These ads are displayed at the top right of YouTube videos, also called desktop-only ads. You pay for each click or the cost-per-thousand impression. These types of ads are very budget-friendly and less expensive.
TrueView in-stream video Ads
These ads show ups for just 5 seconds before, during, or after a YouTube video. After 5 seconds, the viewer can either skip it or not. You only pay for these ads when it is clicked or watched for 30 seconds or more before it is counted as a view.
Final Thoughts
How YouTube pays for adverts depends mainly on the bidding, targeting, and the ads format. Advertisers are advised to choose a bid and their target audience based on their budget and to choose the right type of ad format that the viewers and audience can relate with.
Frequently Asked Questions
Does the quality score affect the cost of YouTube advertisements?
The higher the quality score, the lesser the charge for running ads. The more the viewers who interact and engage with your advertisement, the more relevant your advertisements are to your target audience which in turn increases your quality score.
How do I optimize my YouTube video campaign?
It is simply by adjusting and focusing on your metrics, your click-through rate, and viewer rate. This rate tells so much about how an audience interacts with your campaign on your channel.
