A Beginner’s Guide to Know How Much Do YouTube Ads Cost in 2021!

 28 Jun, 2021

Introduction

Video marketing  is the most effective, quicker way to communicate with your audience and that’s the reason “73% of consumers claim that they have been influenced by a brand’s social media presence when making a purchasing decision.” 

And what’s better than creating and promoting your brand, product or services on the world’s second-most visited website and also the second-most used social platform in 2020. Wondering what that social media platform is? Yes, you guessed right, it’s YouTube.

If that didn’t convince you to post your ad on YouTube then read these facts from HootSuite:

YouTUbe Advertising

Convinced now? Next, you must be wondering how much does it cost to advertise on Youtube? What factors influence the cost of Youtube advertising? So let’s get straight to the details.

How Much Does YouTube Ad Cost in 2021: An Overview

How Much Does YouTube Ad Cost

Though there is really no minimum set amount to what you must spend when you advertise on YouTube, but on an average, YouTube ads can cost anything between $0.03-$0.30 per view, while you pay a $2000 average cost when you reach 100,000 viewers. YouTube counts a view when a viewer watches 30 seconds of your video or engages with it by clicking on it. However, if your video is less than 30 seconds, a view will be counted if a viewer watches the whole video. So, how much does youtube advertising cost?

Well, YouTube allows bidding systems on basis of which you select your ad format and price:

  1. Maximum CPV (Youtube advertising cost per view): Youtube advertising cost per view is based on the number of views and interactions a video received.
  2. Maximum CPM (cost-per-mille): You’ll be charged for every thousand impressions your ad receives.
  3. Viewable CPM (cost-per-mille or vCPM): You’ll only be charged per thousand impressions when your ad has definitely been seen.
  4. Target CPA (cost-per-acquisition): Youtube advertising cost per click is based on actions taken by viewers, such as clicking on your ad.

The Ad formats in YouTube also influences how much does youtube advertising cost, these are:

influences how much does youtube advertising cost

What Determines Youtube Advertising Costs?

Youtube Advertising Costs

Now you know how much does youtube advertising cost, you should also consider factors that influence how much a YouTube ads will cost, these are:

  • Your Advertising Goals

Digital Marketing goals can also determine your ad cost as you have to decide early on what you want to achieve with this campaign, how much you are ready to pay and which ad format will be the best. For instance, if you just want to create brand awareness you can choose shorter ad formats like Display ads. 

  • Your Ad Formats

You have already read about the different YouTube ads and each of them carries a different price range and reach. So select an ad format that suits your campaign goals.

  • Your Bidding Selection

YouTube ad placements work via bidding system so your YouTube ad cost depends on how many other people are bidding for the same ad position. Google Ads provides you with four options:

  1. Maximum CPV (cost-per-view): Costs are based on the number of views and interactions a video received.
  2. Maximum CPM (cost-per-mille): You’ll be charged for every thousand impressions your ad receives.
  3. Viewable CPM (cost-per-mille or vCPM): You’ll only be charged per thousand impressions when your ad has definitely been seen. 
  4. Target CPA (cost-per-acquisition): Costs are based on actions taken by viewers, such as clicking on your ad.
  • Your Targeting Options

Targeting options also influence how much does it cost to put an ad on YouTube as the more targeting options you select, the tighter your budget will be. So set up your ads & campaigns targeting the right audience and reach them exactly at the right time in the right location based on their activity and preferences.

How Should You Calculate Your YouTube Ad Cost?

When you spend on advertisements on YouTube, you should not just focus on how much YouTube Ads cost but also what you are gaining from it. So to ensure that the ROI is higher, constantly evaluate and reevaluate your campaigns with a metric called Return on ad spend or ROAS. It is basically “a calculation method that measures the cost-effectiveness of advertising efforts”.

ROAS= Revenue/Cost

Therefore, if you spent $1000/week on YouTube ads and are generating $1500/week in sales then according to the formula, your ROAS will be: $1500/$1000= $1.5 ROAS

Though a good ROAS depends on a lot of factors, according to Google it is a 4:1 ratio, that is $4 in revenue to $1 in ad costs is what most companies aim for. But the average ROAS is 2:1 that is $2 in revenue to $1 in ad costs.

7 Steps on How to Have an Effective YouTube Advertising

Here are few steps that will help you in creating a profitable youtube advertising:

  1. Plan Your Video Content Goal
  2. Choose Your Youtube Ad Format Wisely
  3. Create Compelling, Emotive, Humane Content
  4. Optimize Youtube Targeting Options
  5. Set Up Video Remarketing especially for Social Media
  6. Use Elements to Inspire Viewers To Take Action
  7. Monitor Your Progress

Do you know there are 5+ Online Marketing Strategies That’ll Level Up Your Business?

Conclusion

Starting anything new in marketing means you have to be patient with the results, you cannot expect to reach millions of audience overnight. Same goes with your YouTube advertising, it will surely fetch you desired results just wait for it to get clicked with your target audience.  

YouTube advertising may seem an overwhelming process but we hope this blog “how much does it cost to put an ad on youtube” has helped you understand the diverse YouTube advertising formats, their price range and how they work. Additionally, we also shared a few tips on how to get your YouTube advertising right with some effective steps. 

So, tell us which type of YouTube advertising are you going to start with in the comments below! Alternatively, you can connect with our Digital Marketing experts with your questions & doubts.

6
Leave a Reply

avatar
6 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Brian TaylorJorge HallJosue RodriguezRiley WalkerLouis Anderson Recent comment authors
  Subscribe  
newest oldest most voted
Notify of

B

Brey White

Thank You for such an amazing post.

L

Louis Anderson

Informative one! I am also looking to learn how to make videos more impactful, can you help with that.

R

Riley Walker

Now I can calculate the average expenditure on youtube advertising.

J

Josue Rodriguez

How to make a youtube channel for business purposes.

J

Jorge Hall

Do we need to set campaigns in youtube marketing as well?

B

Brian Taylor

Please help me with some good tips for gaining popularity on youtube?

Filter By

Popular Posts

What Are Indexed Pages And How To Get A Web Page Indexed By Google?

Differences Between Responsive and Adaptive Web Design Infographic

What are HTTP 403 Errors & How to Fix Them Effectively?

6 effective Tips on How to Write a Blog Post

A Composite Guide to Writing a Good Press Release