One of the optimal solutions for reaching target customers and enhancing brand awareness is to run ads on YouTube. When deploying YouTube ads campaigns, the cost is a crucial factor that advertisers care about. So, what is the cost of running ads on YouTube and what does it include? Follow this article for your answer!
| ☑️ Qualitiy account 💯, no worries about getting lock | ☑️ Immediate use, unlimited spending |
| ☑️ Best rental price | ☑️ Create campaign freely |
| ☑️ Many offers | ☑️ Optimized ads campaigns |
| ☑️ Consulting fast approved ads | ☑️ Safe, secure, effective and affordable |
| ☑️ Diverse services, accounts | ☑️ 24/7 technical support |
Benefits of running ads on YouTube
Businesses choosing to run ads on YouTube can have the following benefits:
It contains billions of users accessing and using it as the 2nd largest social media and search engine globally, Therefore, running ads on YouTube allows businesses to promote their products, services, and brand to potential customers.
Compared to text or image-based ads, video ads on YouTube are more visually appealing. YouTube ads simplify campaign goals and easily convey messages to targeted customers.
Running ads on YouTube does not always require a large budget. YouTube is considered a cost-effective advertising platform. The ads are typically charged based on CPC, CPM, or CPV.
The YouTube platform has a wide reach and rapid dissemination. Therefore, running ads on this platform increases the likelihood of reaching potential customers globally.
How does Youtube calculate its cost to run ads?
The cost of running ads on YouTube is typically calculated based on three factors: views, clicks, and days.
Cost Per View
Also known as CPV, it is determined if the views meet the criteria on TrueView YouTube. This method is applied for these forms of ads videos: 6s, 15s, 30s. The cost for each ad view typically ranges from $0.01 to $0.03 for each view. However, to deploy a thorough Youtube ads, it will cost you about $5000.
Cost Per Click
Or CPC, this applies to display ads on YouTube that involve clicks. Impressions on YouTube do not incur charges, but they will affect the bidding price.
Cost Per Day
This cost applies only to Homepage ads. Homepage ads include video and banner ads on the YouTube homepage. It will continuously appear to all YouTube users.
>>>Click now: tricks for running facebook ads
What is the cost of running ads on Youtube?
The cost of running ads on Youtube is based on your daily budget. When you set a fixed budget, Youtube will distribute the ads to vary audiences. As the result, you will achieve the best views and interactions within your budget.
- The cost of running ads on YouTube varies based on different campaign goals. For campaigns aiming to increase brand awareness and reach users on YouTube and the Google Display Network; In-Stream and Bumper ad formats may be used. The costs for these formats range from $0.0016 to $0.0053 per view and $0.065 to $0.14 per click.
- For YouTube Ads displayed on the YouTube video and Google Display Network, using In-Stream and Discovery video ad formats, the costs are about $0.002 to $0.0061 per view and $0.065 to $0.13 per click.
- If the goal is to increase conversion rates, the cost can range from $0.069 to $0.16 per click.
However, the cost of running ads on YouTube can vary based on factors such as ad type, target audience, duration, keyword popularity, bidding price, and industry competition. YouTube employs an auction system, and ad costs differ based on competition among advertisers. Besides, your daily budget and strategies will also impact YouTube ad costs.
What affects the cost of running ads on YouTube?
Goals
The advertising goals impact the cost of running ads on YouTube. If the goal is to increase brand awareness, you can choose a strategy targeting a large audience. Conversely, if the goal is to increase conversions, you should target the audience to optimize costs per interaction.
Budget
The amount of money allocated for YouTube ads determines the reach and timing of ad appearances. The larger the budget, the higher the opportunity to reach a wider audience and display ads more frequently. You should consider your budget, resources and the channel’s status to set a suitable budget.
Target audience strategy
This directly affects the effectiveness of the ads campaign and ad costs. Targeting an audience interested in and needing your products or services can lead to higher conversion rates, reducing costs per interaction or view.
Ad Type
Different types of YouTube ads have different cost structures. For example, TrueView In-Stream ads are charged based on views, while Bumper ads are charged based on impressions. The ad format also affects YouTube advertising costs.
In particular, with In-Trueview ads, you have to pay when your viewer watches over 30 seconds or finishes your video. The cost per view is about $0,1 – $0,3. For Bumper ads, the charge for 1000 impressions will be about $1-$4. About Youtube Discovery ads’ cost per click is around $0,3.
Auction bidding
YouTube ads use two common auction bidding types, CPM (cost per 1000 impressions) and CPV (cost per view). The choice of bidding type should align with the advertising goals to optimize YouTube ad costs.
The cost of running ads on Youtube in 1 month
The cost of running ads on YouTube depends on the goals and ad formats. If you aim for larger ads, you have to invest a higher budget. Particularly:
When you choose TrueView Ads, you will have 3 choices. With a TrueView 30-second package, you have to prepare a minimum budget of around $408.12. For TrueView 15-second and 6-second packages, the minimum cost for a 3-month campaign is approximately $8000.
With Homepage Ads, for a 2-day campaign, the minimum budget is $30,000. For 5-day and 10-day campaigns, the costs are $75,000 and $100,000, respectively.
In the event you choose Banner Ads, the cost is calculated based on clicks, and the minimum budget is typically around $408.12.
The monthly cost of running ads on YouTube depends on various factors: goals, ad formats, and the budget. Therefore, the minimum budget to run Youtube ads is typically around $20.41.
Instruction to optimize the cost of running ads on Youtube
It is important to optimize for a cost-effective ad on Youtube. Therefore, you can refer to the following methods for an optimized ads cost:
Target the correct audience
You must target the correct audience for an effective YouTube Ads campaign. By researching the characteristics of potential customers and competitors analyze and outline the target audience through demographic criteria such as interests, topics, keywords, age, and behavior… You should choose the most suitable target audience based on your budget and goals.
Create high-quality video ads
To maximize views and achieve the best results, you must create high-quality videos. First, produce videos with high resolution and clarity. Further, incorporate modern technologies to make the ads more attractive.
Also, convey a meaningful value or message in your ad to resonate with the audience. At the same time, state why customers should choose your product or service over competitors.
Create short and effective videos will bring more benefits for your campaign This is the best way to optimize the cost of running ads on Youtube. In particular, ensure that your videos are under 45 seconds and maintain high quality without annoying viewers. You have to capture the viewer’s attention quickly. If viewers skip the ad within 5 seconds, make sure the key message is communicated during that time.
When running ads on YouTube, plan your ad content to ensure it provides valuable information. Set clear advertising goals, such as views, interactions, and the message you want to convey through the ad.
Create relevant landing pages
You should connect the ads to relevant product or service pages to create synchronization and consistency between ads and landing pages. This helps drive users to explore more about your product or service, increasing conversion rates and optimizing cost-effectiveness.
Collaborate with professional YouTube advertising agencies
If you are a small to medium business with a limited budget a young marketing team, this is an optimal method to run Youtube ads.
In particular, you should partner with an experienced agency or rent a trusted, stable Google Ads account in reputable agencies such as Optimal. When renting Optimal’s service, you will be granted quality Agency Google Ads account at the best prices and many attractive offers.
Our account will bring the best bidding price for you to deploy Youtube Ads campaigns. Also, you don’t need to worry about managing your Google Ads account or Youtube ads campaigns. You only have to send us detailed information about the campaign, our expert will proceed to activate it. Our expert will send daily reports of the campaign to you.
Further, Optimal expert team will accompany and support you 24/7 by setting up free ads and campaigns, censoring keywords and content, editing video ads. Especially, we offer to cloak black hat. For more information, contact us via hotline: +84 8 1900 4282.
By understanding the cost of running ads on Youtube will support you in deploying effective ads. You should learn more about running ads on Google, Youtube to develop your operating activities.
See more articles:
- How to test Google Adwords conversion tracking exactly?
- Google AdWords keyword match types and how to choose
- How to create a Google Ads automated bidding strategies?
Frequently asked questions
For this type of ads, the bidding price is at about $8,16 – $12,24/CPM. This means with 1000 impressions, you will have to pay as above.
This depends on the timing and goals of your business. Currently, YouTube does not require excessively high budgets. Depending on your specific goals, you should estimate the budget accordingly.
In particular, for larger goals, a larger budget is required, while smaller goals may necessitate a smaller budget. Considering the time factor, if you intend to run ads for a short duration, you have to set a fixed budget. In such cases, the cost is also likely to be lower compared to longer ads campaigns.
