Ad Answers: How Much Does a YouTube Ad Cost?

YouTube Ad

Ad Answers: How Much Does a YouTube Ad Cost?

Did you know that YouTube gets 30 million visitors every day? This makes the video-sharing platform the biggest search engine after Google. But do you know how to harness that traffic for your business? Find out the truth behind YouTube ad costs right now!

One way is to use the platform for advertising. Read on as we give our essential guide to the cost of creating a Youtube ad campaign. 

Click Here To Learn More About YouTube Ads

Why YouTube? 

As the platform caters to video sharing, Youtube gives you a visual platform in which you can display ads. As it is powered by Google Adwords itself, you have the two biggest engines at your disposal to reach an audience. 

This makes its reach huge. With the rise of viewing on mobile devices, around 1.5 million people log in every month. This does not even include the number of passive viewers who use it. 

How Much Do YouTube Ads Cost?

One of the main benefits of Youtube advertising is that you have no minimum cost. As you are able to set your daily budget, you can advertise for very little, adhering to a set amount each day. This means you can start small, and increase the amount if the campaign seems to be successful. 

Generally, a Youtube ad will cost you $0.10 to $0.30 per view or click, depending on the medium you choose. This price will change depending on a number of factors, including your ad type, target audience, campaign goals, and your bid. 

Start by setting an overall campaign budget. You can then break this down into a daily spend. However, you should not always do this by the same amount every day.

Have a lower amount at the start of the project. This will allow you to refine the campaign in the first few weeks, which we will discuss in more detail later. You can then increase the efficiency and spending as one. 

Return on Investment

Crucially, a campaign should not be measured by the daily spend of the overall budget. Measuring it should come down to its effectiveness, and this is your return on investment. 

A return on investment is the amount you have spent calculated against the amount it has brought you in revenue. The average return on investment is around 2:1. This means if you made $20, you would have spent $10 to get it. 

How Does Advertising Work?

YouTube advertising is extremely versatile. It can be simple to use, but it can also become complicated if you want to use its detailed targeting functions. It starts by uploading your ad then choosing a daily budget. 

Once you have done this, you choose between two types of advertising types. These are pay per view or pay per click. This is a key concept when running your first YouTube ad!

From here, YouTube will decide who to show your advertisement to. They will consider previous search history, other related videos the user has watched, ad settings, and any demographics associated with them. YouTube pinpoints the most relevant audience and hopefully, they turn into a conversion for you. 

Ad Formats

YouTube has a number of formats in which it can deliver your ads, all of which can impact the price. Each will provide a different user experience and reach. These need to be considered carefully and even may require some trial and error. 

Skippable and non-skippable ads are your first choice. If they can be skipped, they are usually shown for the first five seconds before people can move on. This means you have to create an ad with impact in that very short five-second window. 

Non-skippable ads are usually 20 seconds in length and viewers can not move on from them. These should be chosen for a very specific audience, and you need to make sure you provide value. If not, people may view your ad as an annoyance instead of an opportunity. 

Bumper ads are similar to non-skippable ads but they only last for 6 seconds. Outstream ads only appear on mobile devices. Video discovery ads appear as suggestions in the sidebar.

Overlay ads are semi-transparent and reside over the video, in the bottom half of the screen. They can be closed by viewers by pressing the X icon in the top corner. 

Sponsored cards are another option. This is information that gets displayed that is relevant to your video advertisement. For example, you may show teaser content for products that are appearing in the video. 

If you have a large budget, you may even consider masthead ads. These get placed on YouTube’s homepage for 24 hours. You can only place them by speaking to a sales representative in the company. 


Putting your ads on Youtube involves using a bidding system. You put your targeting in place, and then you bid against others who want to show similar ads. Your costs will be dictated in part by how many other people are also bidding for the same spots. 

You have two ways to calculate bid costs. These are cost per view (CPV) and cost per 1000 impressions (CPM). In this method, you get charged if someone interacts with your ad, watches it for the whole duration or longer than 30 seconds for larger ads. 

Pay per click (CPC) is another method of bidding. This means you will only pay if people actually click and follow your ad. This is another great reason that we love running YouTube ads here at Media Shark!

Know Your Goals

Before you put any money into your YouTube advertising, first you should know your goals. This allows you to calculate the return on investment and gives you a sound foundation from which to correctly analyze the effectiveness of the campaign.

This should also shape the type of ad that you are creating. Do you want to simply let people know what your company does? Or are you trying to drive conversions of a certain product? 

If you are building brand awareness, then YouTube ads that play in-stream are a great way to go. They are short and snappy and have a low-cost YouTube ads cost. The trick is to create an ad that gets your brand and message across in an extremely quick time frame, usually within six seconds. 

Creating Your Ad

One cost that many people forget about is creating the ad itself. Placing advertisements on YouTube is only going to work if the content you provide is up to standard. That means investing in quality production.

With the lowering cost of high-quality video equipment, you really can’t skimp. Poor video quality and bad audio can actually do more harm than good. Make sure you have someone who knows what they are doing with it, which may involve hiring outside assistance. 

Once you have the equipment, you need to carefully plan the content. It needs to provide something of value to those who watch it. At the same time, it needs to work towards achieving the goals you have set out. 

Finally, make sure you keep your content short. Viewers will have short attention spans, and their focus can wander quickly. If you are creating long videos that can not be skipped, they may just turn off entirely and not bother watching. 

Make sure the whole video is under 45 seconds. If you can make it even shorter, then all the better. The first six seconds, which are not usually skippable, should be the punchiest part, getting your brand and message across in an instant. 

Setting up Your Campaign

There are a few ways you should set up your campaign to ensure you get the best return on investment. The first concept to understand is that to get the most for your money, any campaign will take time. It is possible to set up a campaign and simply let it run, but the best results will come from analysis and adjustment. 

Find Someone to Run Your Campaign

Finding someone to run your campaign is important. You can try to do it yourself. However, it will take time and effort which you may not have if you are running a business. 

If you have an in-house marketing team, then create the campaign in conjunction with them. This will allow you to dedicate one person to improving and analyzing the results and your YouTube ad costs. Your in-house team should already have data and experience that can increase the effectiveness of your YouTube ads. 

If you don’t have an in-house team, then consider hiring a third party. Very often, these companies will have experience and resources that are not available to you. They will be able to manage everything from creating the video to putting it online. 


Once you have the campaign, to ensure you get the most from your budget you need to aim it at the right people. It is possible you already know a lot about your customers from previous marketing efforts and research you did when setting up. If not, it can help to get an idea of the backgrounds for your target audience before you start. 

The audience can be broken down into a number of demographics. This could be based on gender, age, income, and location as well as other factors. Another way to target them is by looking at previous interests, which they may have shown through watching YouTube videos in the past. 

Topics and keywords are also a good place to start. Keywords are phrases that people type into YouTube when searching. By finding the right keywords, you can appear before people went they search. 

Another very successful way to advertise is through remarketing. This targets people who have interacted with people who have displayed an interest in your products, services, or ads in the past. While highly effective, this does tend to cost more. 

Monitoring Your Campaign

YouTube will provide you with a wide range of metrics including YouTube costs. They allow you to monitor the performance of the ad, often in real-time. You can utilize this to get the best return on investment. 

The type of metrics at your disposal are views, shares, subscriptions, and likes. By keeping an eye on them, you can see how the campaign is growing and refine it as you go. 

One good way of doing this is with A/B testing. This involves creating two campaigns that differ, either in content, the ad type, or the demographics you have chosen. Start with a low budget on each, and see which aspects are working best for each of the ads. 

Once you have this information, you can combine it into one refined, effective ad. By deploying most of your budget here, you will get a better return on your spending

Landing Pages

Once you have captured the attention of your new audience, you need to capitalize on it. This is just the start of the customer journey. You still have to turn them into conversions after the YouTube ads.

Optimized landing pages are specific places on your website that viewers of the ad get sent to. They may contain information about the specific product or offer they have viewed, or even target a certain demographic. Creating them pushes leads further down the sales funnel. 

For example, imagine clicking on an offer for a new product. Without an optimized landing page, customers may get sent to the website’s homepage. This could contain all the products and news a company has, meaning they have to search for the information they need. 

This leads to them losing interest and leaving. With optimized pages, they are usually only one more click away from converting. You may also think about giving them more enticing offers such as extra discounts. 

Youtube Ad

Now you know the cost of a YouTube Ad, you need to start the campaign. Select your target audience and type of ad. Introduce A/B testing and refine the campaign, increasing spending as you go. 

Your first stop for online advertising should be Media Shark. We take your digital dollar further by driving sales and leads. Contact us here and let us help you thrive in the digital economy. 

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