How much does it cost to advertise on Youtube? by Best Digital Marketing Agency, Absolute Digital
Updated: Oct 20, 2020
Every minute, about 500 hours of video content is being uploaded onto Youtube. Competition is fierce out there for brands and creators. But this is good news for a potential Youtube Advertiser because it means that there is an increasingly strong demand for Youtube Videos, and therefore there will be more slots of Video Advertising on Youtube!
Source: pew research
Youtube and Facebook continue to be the top choice of viewers in 2020 and the numbers will only go up from here. As a business owner, you'd ideally want your ads to appear in front of where your potential customers are spending most of their time at. For Youtube, that's an average of 11m and 24s per day. On top of that, there are 1.5 million active Youtube users per month! That's 1.5 million potential customers for a Youtube Advertiser!
Quick Answer: The average cost for advertising on Youtube in 2020 is around $0.10 to $0.30 per view. This means every time someone views your ad or engages with your ad, Youtube will charge you for it.
Youtube Advertising, when done right, is the ideal platform for businesses to market their products or services simply because you are able to narrow down the user's profile by choosing which videos to show your ads on. For example, if you're selling new sneakers, you should place your ads on Youtube videos such as "Hypebeast Sneakers 2020" or "How to protect my shoes" videos. This almost guarantees that the viewer is interested in sneakers and therefore is your target audience. So when you place your ads in these videos, there is a higher chance that the viewer will be interested in your brand's products.
Types of Youtube Ads
There are basically 2 main types of Youtube ads. Youtube Search Feed Ads and In-Stream Video Ads and here's what you need to know about these types of Youtube Ads...
Youtube Search Feed Ads
Youtube Feed Ads appear on the top of Youtube's search results page and are often linked to your keywords. Similar to how Google SEO and Google SEM work, you target your audience by choosing the most relevant keywords searched and Youtube's algorithm will show your ads depending in the relevancy of the user's searched keywords.
In-Stream Video Ads
Usually about 6 Seconds, Youtube's In-Stream Video Ads are at the beginning of a video, in the middle, or at the end of the video. Video placements will be chosen by the content creator themselves, choosing where they want to place the ad slots. The 6 seconds videos are non-skippable whereas if your ads are longer than 6 seconds, you may choose to give users the option to skip (cheaper) or to watch the full length of the video (more costly).
Costs to Advertise on Youtube
Typically, the cost to advertise on Youtube is about $0.010 – $0.030 Cost-Per-View or (CPV), and the views that you generate will count towards your overall YouTube viewer count. The average cost of reaching 100,000 viewers is around $2,000.
The key to budgeting on your YouTube Ads costs is the need to bid on ad placement.
You are not given any set price for advertising on YouTube and set a comfortable daily budget for your YouTube ads.
Most businesses budget at least $10 per day for their YouTube advertising campaigns and then increase their budget once they have optimised their online sales funnel.
Youtube only charges you when a viewer engages with your ad.
Some examples of engaging with your ads could be watching your skippable ad until the end, or when they click on a Call to Action(e.g. link to your website) on a display ad. Make sure that your target audience is right before you set your bidding options.
In most cases, you will bid by CPV. This means that you are willing to pay up to your bid figure for each view (of 30 seconds or longer). You can also set a maximum amount that you are willing to pay for your ads per day to ensure that you stick to your budget in case more people watch your ads than you expected.
If you'd like to find out more about how your business can advertise on Youtube or any other Social Media Marketing platforms, you can reach out to a reliable digital marketing agency like Absolute Digital at +65 8892 1290 or drop us an email at email@example.com. Alternatively, you may read our other articles on digital marketing here on our blog.