YouTube Ads Cost

YouTube Ads Cost: is it worth in 2020?

When we are talking about advertising on YouTube, there is no minimum amount you should spend. So here it is the question of how much you should spend on YouTube ads and how much it will cost your business to launch ads. With 1.7 billion active users monthly all over the world, YouTube becomes the second-largest online platform. If you are looking for a new way to promote your business, YouTube is the place where you should try it.

For YouTube ads, the average cost-per-view is between $0.10-$0.30, and the generated views will be taken into account when calculating the total number of views on YouTube. The average price of reaching out to 100,000 viewers is around $20,000. Most businesses invest $10 per day in their advertising campaign on YouTube. This amount increases as companies learn more about the effectiveness of their campaign. However, these numbers just average and they may depend on content and business. 

Types of YouTube Ads

YouTube offers a variety of ad types. They include:

Display ads – this kind of ads appears to the right of the featured video, above the list of video offers – only on the desktop platform.

Overlay ads – this is semi-transparent overlay ads that appear in the bottom 20% of your video – only on the desktop platform. These can be images or text ads.

Skippable video ads – The most popular type of YouTube ads. These are ads that you see before, during, or after videos that the viewer can skip after 5 seconds.

Non-skippable video ads – These are video ads that viewers must watch before the main video. There is an extended version with 30-second ads, but YouTube is going to abandon them because of their unpopularity. The duration of the video without the possibility of skipping is usually 15-20 seconds.

Bumper ads – these are also videos that cannot be skipped, up to 6 seconds long, which the viewer must watch before watching the main video.

Sponsored cards – these provide video-related content, such as products shown in the main video

What is Affect the YouTube Ad Costs

There are main factors that affect the YouTube ads cost:

  • Ad type
  • Your bid
  • Your bidding selection
  • Target audience

These factors tend to affect the level of advertising on YouTube in different ways. For instance, your bid is more likely to have a more direct impact on your advertising costs on YouTube than your bid choice, as you set the final number for what you’re willing to pay per click or view.

Bidding

The main aspect of the level of your YouTube advertising costs is having to bid on advertising. You are not given any fixed price for advertising on YouTube. You set the daily budget for being willing to pay for ads on YouTube. Most companies spend at least $10 a day on their YouTube advertising campaigns and then raise them when they experiment with different options. You pay only when someone somehow participates in your advertising campaign. They may view your skipped ad for 30 seconds or click on a call-to-action in a display ad. Before setting bidding options, make sure you customize your targeting. 

YouTube changes the bid suggestions as you change your targeting options. In most cases, your bid for the cost-per-view. This means that you are ready to pay up to your bid for each view (from 30 seconds or longer). You will also set the maximum amount that you are willing to pay per day. This ensures that you don’t get any unpleasant surprises if you find that more people are watching your ads than you expected. You will be asked to offer a maximum cost-per-view.

YouTube will provide you with a typical range of bids – of course, they will depend on how much you limit your audience in your targeting. By choosing “Customize Bids Per Format,” you can divide your bids separately for “In-Display” or “In-stream”. If you prepare to use “In-stream” ads, bid more for this strategy than you do for “In-Display.” YouTube provides you a forecast of your forecasted views per day for in-display, in-search, and in-stream. If these figures do not correspond to your intentions, you need to return to your bets and adjust them accordingly. It will show you a predicted average cost-per-view.

Set up a YouTube Ad in the Most Effective Way

Advertising on YouTube can have a powerful effect on helping your audience learn more about you and your business. We have determined the main steps you can take to create more powerful YouTube ads.

1. Choose the right people to run your campaign.

YouTube advertising campaign takes a lot of time and effort. If you want to achieve the best results in your YouTube campaign, you need to make sure that the right people are working on it. You can create and run an advertising campaign by yourself. However, it is more effective to hire a marketing team, that will create and run ads for your business. If you decide to launch your campaign by yourself, you will want to set a budget depending on how you decide to display your ads. 

For example, if you will run ads that are one minute long and pay for someone to watch just 30 seconds, you must determine how much it costs for your business, it may be $1 or $0.50 per click. Some companies prefer to hire a marketing company that will take care of their YouTube advertising campaign. This is a great decision if you do not have much experience in conducting a video marketing campaign or you are too busy with other deals. By choosing a YouTube marketing company, you can expect to pay between $300 and $600 for a website and social media video. Basic video costs about $300, and premium ones up to $600. For whiteboard videos, the price varies from $1,000 to $2,000. These videos are more complex, so they cost more. The price of your video varies depending on its length, the number of words in the script, the number of angles, etc.

2. Set your target audience.

Your target audience is the people who you are trying to reach with your advertising campaign. If you want to launch an effective advertising campaign, you must determine who you are targeting. Here are different ways to target your ideal audience:

  • Demographic groups: Here we are talking about age, gender, income, or parental status.
  • Keywords: Display YouTube ads based on keywords and phrases your YouTube audience is looking for.
  • Interests: Information and topics that your audience is interested in watching YouTube videos.
  • Topics: Target people by the topics they search for on YouTube.
  • Remarketing: Try to reach out to the people who already showed some level of interest in your video content in the past.

All of these options are available for your business. You just need to choose the right one and customize it properly. 

3. Make quality video ads.

To improve the results of YouTube ads, you have to create high-quality content. You want people to watch and interact with it as much as possible. To do that, you should invest in the quality of your video. First of all, you have to create a high-quality video. You don’t want your audience to watch videos that are poorly shot and have low resolution. It is expected that with the development of film technology, you will produce high-quality video ads.

Secondly, you want your YouTube ads to bring value to your audience. If you do not show them the value of choosing your business, your advertising campaign will not work at all. If you are planning to launch YouTube ads, you must plan the content of your ad so that it gives your audience valuable information. Set the goal you’d like to achieve with YouTube ads, and deliver ads that help you communicate your message effectively.

4. Keep your ads short.

People don’t like to watch ads, so if your ad would be so long, you will restrain or discourage them from viewing. It happens quite often with non-skipping videos. If you have a long, unplayable video, people will lose focus and can not watch it. Producing a short and effective video will provide the best results for your campaign. Typically, your video should be 45 seconds or even less. This will give you time to create a high-quality video without playing too long. You need to get your point across really fast. If someone can skip your video within five seconds, you need to make sure that your message is transmitted in these few seconds. It is important to be concise and get to the main point.

5. Create a relevant landing page.

Every time you start an advertising campaign, it is very important that you navigate your audience directly to relevant information. You want to land them to a landing page that expands the information of your ads. Using effective YouTube ads will allow you to direct potential customers to a specific page. It helps them to learn more about your business, products or services. You need to create a specific landing page for your advertising campaign so that you can customize it with the relevant information for your YouTube ad. If someone likes the information that he sees in your ads, he can visit the landing page to get more familiar with your products or services. This is a great way to direct potential customers to your page.

6. Monitor your campaigns.

Finally, you should not worry only about how much your YouTube advertising costs, but how much profit you can get from the cost of advertising on YouTube. If you want to understand the effectiveness of your campaign, you must regularly check its performance. Distributing quality advertising content will help your business continue to grow. When you launch ads on YouTube, you have access to metrics that let you see the performance of your campaign. You can track metrics like views, likes, posts, and subscriptions. You can also see real-time information about your campaign to better understand it. By controlling your campaign, you will achieve the best results for your business. You will have more effective advertising on YouTube, which will give results and help your business grow.

Why You Need to Promote Your Business on YouTube

Even if you know the answer to the question “How much do YouTube ads cost?” and how to organize a cost-effective advertising campaign on this powerful platform, you may still have some doubts about advertising on YouTube. Is it worthy your company money, effort and time? Without any doubts, we are saying yes, it is worth it. YouTube ads offer several advantages that display this statistic:

  • YouTube cover almost one-third of all users of the Internet;
  • Mobile advertising on YouTube are 84% more likely to keep people’s attention than TV;
  • 90% of US Internet users (ages 18 to 44) use YouTube;
  • YouTube helps to 68% users make their purchase decision by watching videos;

Advertising on YouTube provides you instant access to a wide audience.

This audience size gives you the flexibility to reach your target audience using YouTube’s targeting options. Compare with other platforms, advertising there limits your access to valuable members of the audience. The targeting options available through advertising on YouTube also allow users to create relevant ads. This is why YouTube advertising is more effective than traditional advertising media such as television. Moreover, you can use targeting to reach users at the perfect moment, for example, when they are exploring a purchase and one step away from buying it.

It’s also quick and easy to create YouTube ads.

While you can work with a professional agency, you can also shoot ads inside your home using your smartphone. However, for best results, plan your ad. In this way, you can create a professional video ad that catches the attention of your audience.

Let’s Start Your YouTube Ads with Dewzilla

As far as you can see YouTube ads can boost your business to another level if it’s working properly. Dewzilla will help you with the creation of your ads, choosing the most suitable type of advertising campaign, determining the ads budget, optimization, and all other important factors. Our experts know how to use YouTube ads for remarketing and brand awareness. We will help you to deal with your current audience and attract new consumers, by customizing your ads targeting in the right way. We value each dime of our clients, so you don’t need to worry about anything, as we will always be in touch with you.   

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