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If you have set up your YouTube channel, and you’re eager to start advertising. As you move on to the next steps, you should begin to wonder how much your YouTube campaign will cost? Partners want an ideal budget, but because ad campaigns rely on so many moving parts, it’s more of a discussion than a quick answer. 

So, How Much Do YouTube Ads Cost? 

According to Google, most local businesses start with a daily budget of $10.00. On average, the cost per view (CPV) or cost per action (CPA) is around $0.10 – $0.30. These numbers mean that a highly attractive video commercial and a well-optimized YouTube ads campaign should receive 300 to 1000 daily views.

Of course, your YouTube ads costs will vary according to ad type, bidding, targeting option, and industry. We know you want a straight answer, but there isn’t a fixed answer to this question. However, what we are sure about is that running your YouTube campaign with a $2.00 daily budget won’t get you very far.

How Do YouTube Ads Work?

To get started with your YouTube ads, you first need to understand how the platform works. The basics include bidding, ad types, and targeting. Let’s begin!

YouTube Ad Types:

Advertisers have a choice of six different types of YouTube ad formats featured below. Google Ads allows them to engage with users in various ways across the platform and partner sites. 

You soon discover that ad formats play a critical role in your campaign objectives and costs.

• In-stream skippable video ads are the most common type of YouTube ad. These are featured before or after a video and allows the viewer to skip the ad after 5 seconds

• In-stream non-skippable video ads are 15-second spots that viewers must watch before, during, or after they watch a video. These videos can be less than 15 seconds.

• Bumper ads are non-skippable videos up to 6 seconds that a viewer must watch back, during, and after seeing the main video

• Video Discovery Ads are ads that appear on YouTube search result pages, alongside related videos, and on the YouTube mobile homepage. These ads include a thumbnail of your video ad and invite people to watch.

• Outstream ads are mobile-only ads that appear on Google’s Video Partners. These ads help you expand reach by showing your video ads outside of the YouTube platform. Also, please note that they do not appear on the YouTube platform.

• Masthead ads are only available on a reservation-only basis through a PPC Agency. These ad formats are featured on desktop, mobile, and tv screen devices. Masthead ads are ideal for reaching big audiences in a short amount of time.

YouTube Campaign Objectives

Every YouTube campaign requires a goal. The platform relies on the objective to showcase your ads to people that are more inclined to take action with your brand or service.

 Your YouTube ads costs varies per goal. Based on our experience, the cost of generating product awareness, consideration, or website traffic is usually less expensive than driving sales or generating leads. Sales and lead auctions are in higher demand, resulting in higher costs.

Targeting Options For Your YouTube Advertising Campaigns

Similar to search or display Google Ads, YouTube ads allow brands to target specific audiences or consumers who have engaged with a particular placement.

When targeting audiences, you can filter based on people’s demographics, interests (affinity audiences, in-market audiences, life events), remarketing consumers who have visited a specific website, video, or app. You also have the option of uploading your customer list.

Also, you can choose to showcase your YouTube ads to people who have previously visited a specific homepage, website, blog, watched a particular YouTube video, or followed a YouTube channel.

Bidding Strategies Available Within YouTube Video Ads

Your bidding options available to you will be highly dependent on your campaign goal. The bidding you choose will have a direct effect on your YouTube Ad cost. Overall, the bidding options available include target CPA, maximize conversions, target CPM (cost-per-impression), viewable CPM, or manual CPV (cost-per-view). If you don’t choose a campaign goal, you will only be able to control CPV manually.

Our fulfillment team recommends using “Maximize Conversions ” or “Target CPA” to achieve clients’ business goals. Both of these strategies are highly effective and fully automated, so Google Ads determines who to display your video ads based on who’s more open to new brands or taking action such as filling a form or requesting a quote. Meaning that, both of these strategies will help you spend your YouTube Ad’s budget effectively as the machine will prioritize conversions. Your YouTube ad costs will have results beyond views.

Conclusion

As we’ve mentioned earlier in our post, we often get asked for a fixed YouTube ad cost recommendation. We always remind our partners, potential clients, and readers that any Google Ads campaign will need a daily budget that allows your brand to stay competitive. YouTube advertising budgets can be tweaked to meet your business size, needs, and overall marketing budget as you go.

Leveraging the right features can position your brands in front of the right audience to guarantee either a higher reach or leads for businesses. 

Interested in learning more? Book a meeting and receive a YouTube campaign proposal that is just right for your business. Subscribe to our blog to stay connected!