Billions of people all over the world flock daily to watch their favorite influencers on YouTube. This is why advertising on YouTube is a fantastic way to reach your target audience very effectively. Some of the top brands advertise on this video platform with a lot of success.
So how much do you need to spend on video advertising on YouTube? Find out the answer here.
Cost of advertising on YouTube
The cost of advertising on this video platform is relatively affordable. It is because of their click setup or pay-per-view, which is one of the best features of advertising on YouTube.
With the click setup or pay-per-view, you only have to pay for the ad if viewers watch the full video. In some cases, brand owners only pay if the viewer watches up to 30 seconds of the advertisement. Furthermore, for some types of ads, you do not pay unless the viewer clicks on a sign that pops up on the screen.
Types of ad formats YouTube
There are different types of advertising formats on YouTube. These are:
- Sponsored cards – This format is similar to a teaser for a film. Along with the informational content, you can add relevant information for the viewers.
- Overlay – These are semi-transparent links with an X at the bottom of the video. Viewers can either remove it or watch it at will.
- Display – This format allows you to advertise your brand on the right side of every video that the viewer watches. In addition, it also gives the viewer full freedom to choose whether to watch the ads or not.
- Skippable – Ads in this format can pop up anytime during the video. However, the viewer has full freedom to watch, skip, or close the advertisement.
- Non-skippable – As the name suggests, non-skippable ads do not give the option for the viewer to skip it. However, YouTube ads in this format are typically very short. You can also choose ads that are up to 30 seconds long if you feel confident.
What is the going rate per click?
For YouTube ads, the typical going rate is $0.10 per click from a viewer. This means you can start a daily advertising budget with as little as $10, which is a fantastic option even for small business owners. So your monthly advertising bill on YouTube is about $300.
In addition, YouTube also allows brands to have full control over their advertising budgets. Furthermore, since a lot of brands are advertising heavily on the platform, brand owners also get to place bids on ad placement. So overall, the platform is very budget-friendly for small and medium-sized business owners.
How to minimize video advertising costs on YouTube?
Here are some tips to reduce advertising costs on YouTube.
- Identify specific topics and keywords before choosing the placement of your ads. This will also help you personalize the ads for your target audience.
- Understand which type of advertising format is best for your brand.
- Using demographics and categorizing the ads that target viewers by gender, age and income give you more flexibility.
If you need help determining the exact cost to advertise on YouTube, we will be happy to help!