AN ULTIMATE YOUTUBE ADS COST GUIDE FOR 2021
Thinking of advertising on YouTube in 2021 and not sure if it’s worth it or not? The good news is that there is no minimum for your spending on YouTube Ads. So, the amount you spend on YouTube depends on your budget. The tough question is “what is the right amount you should invest in your YouTube advertising campaign?” “How much will it cost your business to launch ads?”
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.
Most businesses tend to invest a minimum of $10 per day in their YouTube advertising campaign. Businesses are willing to increase their investment as they see its effectiveness. However, these are just average numbers and the exact ones may vary based on content and business.
Before moving forward with the answers to these questions, you need to have a good understanding of some definitions and different YouTube advertising options.
This article provides you an ultimate guide for analyzing YouTube advertising costs and effectiveness, including the available features and cost structure, ad types, and some FAQs.
- What Affects YouTube Advertising Cost
- Why you need to promote your business on YouTube
- 6 Steps to the Most Effective YouTube Ad Set-Up
- YouTube Advertising Costs FAQ
- Is YouTube advertising effective?
- Can you advertise on YouTube for free?
- What is the average cost per view on YouTube?
- What is an average CPM on YouTube?
- What is CPC on YouTube?
- What is the daily budget for YouTube ads?
- How much does a 1-minute animation cost?
- How long should a YouTube video ad be?
- Is paying for YouTube ads worth it?
- Why are ads appearing on my YouTube videos?
- How do YouTubers get paid from ads?
- Why should you choose Dewzilla YouTube Ads Services?
What Affects YouTube Advertising Cost
youtube Ad formats
YouTube offers a range of ad formats for you to opt for. They include five main categories and some subcategories as follows:
2. Skippable in-stream video ads
3. Non-skippable in-stream video ads
4. Discovery ads
5. Non-video ads
True view ad
This type of ad is a win-win for both you as the advertiser and the viewer as the audience. They are made based on Google’s promise to charge only if somebody watches your video. TrueView ads give the option to the viewer whether to watch or not.
In True View ads, viewers will only watch videos they are interested in or curious about.
There are two types of YouTube TrueView Ads: TrueView in-stream ads and TrueView video discovery ads
TrueView in-stream ads
These are the ads that appear before the start or during a video of a YouTube partner. Viewers watch the ad for 5 seconds and they can decide if they want to skip ad or continue watching.
You pay when the viewer watches the ad for a minimum of 30 seconds long. You are also charged if the viewer clicks on a card or any of your advertising options on the in-stream ad.
TrueView video discovery ads
TrueView video discovery ads are shown along with other YouTube videos when the user searches for something. You just pay if the viewer clicks and wants to see your ad.
Skippable in-stream video ads
are 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.
Viewers who watch these types of ads can decide if they want to skip ad or continue watching.
You pay when the viewer watches the ad for a minimum of 30 seconds long. You are also charged if the viewer clicks on a card or any of your advertising options on the in-stream ad.
Non-skippable in-stream video ads
are the type of 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.
YouTube bumper ads are also types of videos that cannot be skipped, up to 6 seconds long, which the viewer must complete before watching the main video.
Discovery ads are very similar to the Google Adwords system. They are shown to the audience among other organic search results. And if your video seems to be relevant, users can choose to watch them.
Their structure is based on a thumbnail and 3 lines of text with it. As a YouTuber clicks on it, he or she will be led to your video or channel.
Discovery ads are a type of true view ad. As you only pay for real user interaction with your video.
Non-video ads can be categorized into several types of ads:
These kinds of ads appear to the right of the featured video, with its text and image. It is placed above the list of video offers – only on the desktop platform.
Overlay ads are 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. They are shown floating on top of videos of YPP (YouTube Partner Program) channels.
Sponsored cards provide video-related content, such as products shown in the main video
– What is 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.
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.
– Bidding Selection
YouTube changes the bid suggestions as you change your targeting options. In most cases, your bid for the CPV. 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 CPV.
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 CPV.
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 (PPC) or pay per view (PPV).
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.
You should know your ultimate goal for advertising on YouTube. The two main reasons why brands advertise on YouTube are:
· Increase brand awareness
· Drive traffic to the website
Boosting generated leads, lead conversion, sales, and product purchase consideration are all the things that happen after brand awareness and increased traffic.
You may ask yourself is it worth your company money, effort, and time? Without any doubt, the answer is yes! It is worth it.
YouTube ads offer a range of benefits as can be seen in the following mind-blowing statistics:
· YouTube covers over 1,300,000,000 of all internet users;
· 60% of people prefer watching videos on online platforms to watching TV;
· The overall YouTube watch time is 3.25 billion hours per month;
· More than half of the videos on YouTube were watched on mobile;
· 70% of viewers were converted and purchased from brands they saw on YouTube;
· YouTube helps 50.9% of B2B users with their purchase research.
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. Compared 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.
6 Steps to the Most Effective YouTube Ad Set-Up
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.
You can make live-action videos or animations. The price of your video varies depending on its length, the number of words in the script, the number of angles, camera movements, etc.
2. Set your target audience
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:
Your target audience is the people who you are trying to reach with your advertising campaign. For any advertising campaign, you require to specify your target audience or buyer personas. The time you put into defining your buyer personas will be paid off in your YouTube ad campaign success.
For this purpose you should consider the following three parameters YouTube takes into consideration for targeting the audience:
Demographics refer to population statistics such as age, gender, parental status, and geographical information. YouTube offers more specific data related to the audience’s stage of life; e.g. new homeowners, university students, etc.
Interests are highly important as showing your ad to the viewers with relevant interests can boost your campaign effectiveness. Interests refer to the past behavior of the audience, which is based on their search history.
This can also lead to a higher ROI for your YouTube campaign. Those who have interacted with other videos from your channel will be targeted again.
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 cannot watch it. Producing a short and effective video will provide the best results for your campaign.
Typically, your video length is recommended to be at least 12 seconds and a max of 45 seconds. 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 on 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 revenue (ROI) you can make 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 be able to achieve the best results for your business. You will have more effective advertising on YouTube, which will lead to results and help you grow your business.
YouTube Advertising Costs FAQ
Below, you can find a list of frequently asked questions about YouTube Advertising Costs and Effectiveness and the answers to them:
Is YouTube advertising effective?
With 30+ million active daily users (more than some countries’ population), YouTube keeps the second-largest online platform position in 2021. If you are looking for a new way to promote your business, YouTube is the right place for you.
Can you advertise on YouTube for free?
Free YouTube advertising is not possible, but you can choose advertising options in which you only pay when the user interacts with your ad.
What is the average cost per view on YouTube?
For YouTube ads, the average cost-per-view (CPV) is somewhere in the ballpark of $0.03-$0.30. The average price of reaching out to 100,000 viewers is around $20,000.
What is an average CPM on YouTube?
CPM or Cost per Mille shows the amount YouTube advertisers are willing to pay for 1,000 ads. For instance, if you plan to invest $1,000 into your ad campaign with 370,000 views, the CPM equals $2.70 ($1,000/370,000) x 1,000 = $2.70). The average Cost per Mille on YouTube is $2.
What is CPC on YouTube?
CPC is the abbreviation of Cost per Click, which is a method for charging the advertisers based on clicks on the advertisement. Some videos are placed around the playing video and not in it. The advertisers of these kinds of ads are charged CPC based.
What is the daily budget for YouTube ads?
Most businesses spend at least $10 a day on their YouTube advertising campaigns and then raise them when they experiment with different options.
How much does a 1-minute animation cost?
For creating explainer videos like whiteboard animations and motion graphics, the price varies from $1,000 to $2,000 per minute. You can also make 2D and 3D animated videos with an increased budget.
The price for making 3D animation ranges from $3,000 to $15,000 per minute or even more. The price depends on the complexity and the number of animation characters and environments. These types of videos are more complex, that’s the reason why they cost more.
How long should a YouTube video ad be?
Your video length is recommended to be at least 12 seconds and a max of 45 seconds. This will give you time to create a high-quality video without playing too long.
Is paying for YouTube ads worth it?
If you are asking should I pay for YouTube ads, the short answer is yes! You can target an audience based on your buyer personas, choose from a range of ad formats and start with a budget as low as $10 a day.
Why are ads appearing on my YouTube videos?
You may be a Youtuber and wonder why ads are recently appearing on your YouTube videos. After an update in November 2020 by YouTube platform announced that even some channels that are not part of the YouTube Partner Program or YPP, will be showing YouTube ads.
But non-YPPs will not earn any revenue for it. Then, don’t get confused if you are not part of YPP, and ads are appearing on your video content.
How do YouTubers get paid from ads?
YPP or YouTube Partner Program refers to a program on YouTube which enables creators or owners of YouTube channels to attach ads to their videos and generate revenue. YouTubers must meet specific criteria to be able to join the program and get paid for showing ads on their videos.
Why should you choose Dewzilla YouTube Ads Services?
As far as you can see YouTube ads can boost your business to another level if it’s working properly. Dewzilla 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 ad 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.