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:
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.
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:
The Ad formats in YouTube also influences how much does youtube advertising cost, these are:
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:
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.
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.
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:
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”.
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.
Here are few steps that will help you in creating a profitable youtube advertising:
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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.