Online Advertising: How Much Are YouTube Ads?

how much are youtube ads

Online Advertising: How Much Are YouTube Ads?

Netflix has been dethroned. 

No, not by rival streaming programs like Amazon. But by YouTube, to the tune of 8.6 billion dollars. This is all due to the growing mountain of ad revenue that is streaming into its coffer, and it comes with a treasure trove of benefits for both the company –

And for your business.

So, how much are YouTube ads? What will it cost for you to capitalize on its tremendous potential? Let’s get you on the road to dethroning your rivals! But to wield this mighty system, let’s first understand how it works.

The Mechanics of Youtube Advertising

If you’re all caught up on CCP and CPV, then you’re well familiar with how Youtube ads work. In much the same way as Google Ads, you can bid on keywords encapsulated within your ads. This projects your business in front of as many eyes as possible. The difference between Google and YouTube ads is the obvious one: the visual format. 

But if you are ready to commit to bangin’ out stellar productions, then there are factors that you need to consider before yelling “action!”

How Much Are Youtube Ads?

“On YouTube, we won’t buy impressions, we’ll buy views, because too many people are skipping, right?” said Melissa Grady, Cadillac’s CMO. 

There’s a slight jab in there, but it rings true. If you’re not aware of the nature of the platform, how people interact with it, and the type of bids that there are, then you might be caught draining your budget down pointless drains. 

So hold that blowhorn, Speilberg! Before you go about channeling your inner Quentin Tarantino, you need to get one thing squared away. 

1. Your Goal

So, do you want to know how to advertise on YouTube? Well, the first thing that drives how much money will leave your wallet is this — what do you want to achieve with your ads? Do you desire:

  • Traffic
  • Sales
  • Leads and Conversions
  • Awareness

These are all questions that the platform will ask you when you start crafting an ad campaign, so start thinking about what the purpose of your slick production is. You can always try to create a campaign without a goal, but that isn’t recommended unless you are a YouTube Video Marketing Maven. Let YouTube do some of the heavy lifting so that you can focus on your business. 

But how does a goal drive cost? Because it’ll determine two crucial things in your campaign:

  • Ad Type
  • Bidding Strategy

2. What Bidding Types Should You Use?

Are you strained on budget, and looking for the best way to maximize the reach of your dollars? The type of bids that you can place with YouTube ads give you options to help you get the most out of your company’s wallet. It all goes back to what the purpose of your ad is.

Cost Per Action (CPA)

This is the cost that comes into play when a viewer watches your bodacious ad, is all jazzed up, and takes some kind of action: clicking on a lead form, survey, form, etc.

Cost Per Thousand Impressions (CPM)

Should you desire to pay per 1,000 appearances on Youtube, then this is a great option to be able to control the number of times that the ad appears, and only pay that amount when the limit is hit. This is different from “views,” which is when a viewer watches your ad for at least 30 seconds. 

Cost Per View (CPV)

More general than CPA, this bidding strategy only has you pay when someone views or interacts with your ad. 

3. Which Ad Type Fits You

The YouTube UI is about as user-friendly as it gets, and each time you view a video there’s a host of ads being flashed up before your eyes. Their location depends on what kind of ad they are. 

And for you, it means the world on the type of ad, and where it’s at. 

Display Ads

These static ads appear to the right of the playing video, just above the video suggestions list. Since they are not in video format, your copy and design need to be top-notch to pull in clicks. 

Scope out what we recommend to craft compelling display ads!

Skippable In-Stream Ads

These ads are the types that you get hit with before, during, and after videos. They allow the option for the viewer to skip past, usually after 5 seconds. So you have that 30-second cushion, but kiss that lead farewell if your hook doesn’t rock their world in 5 seconds.

Pricing type: CPM

Non-Skippable In-Stream Ads

Just as the description reads, these ads lock our viewers in until 15 seconds run out. Usually, these ads run only 15 seconds, so that the viewer watches the ad until its completion, allowing your brand to get its message across.

Pricing type: CPV

YouTube Bumper Ads

If you have an effective message that can be landed with a quick punch, then this is the perfect option for your campaign. Lasting only 6 seconds, it’s unskippable and just short enough to allow users to watch to its completion – even if they could skip it!

Pricing type: CPM

Outstream Ads

These are much less jarring than the other types. They start muted and allow the viewers to unmute before the ad plays to its conclusion. These could be a good option, but ask yourself this: What is the most important segment of an ad?

If it’s the hook at the beginning, then you see the danger with this type of strategy.

Pricing type: CPM

4. How To Determine Your Budget

Whatever dollar amount you can afford for your epic marketing campaign, just know that it can often take around 2 weeks before you can start to see the true results of it. Because of this, just take whatever daily amount you feel comfortable investing ($10 is a good start), and then multiply that by 14. That will be your budget for 2 weeks. In this case, $140. 

$10 x 14 days = $140

5. Which Targeting Methods To Harness

Are you marketing out the next hotline of sneakers? Well, if you target your audience too broadly, then Granny Johnson will see your ad play next to her crochet video! Not the best use of your budget, is it? Because of that, you want to make sure that your targetings are dead set and focused on who you’re trying to appeal to. 

So don’t focus on keywords that are terms people in your niche have no business searching for. When targeting, be sure to include both “positive” to target, and “negative” keywords to avoid. This will help YouTube push your video out to the proper demographics.

Sorry Mrs. Johnson, keep on with the crochet!

Lights, Camera, Clicks

Setting up your YouTube ad campaign can be a doozy, with the ocean of settings at your shaking fingertips. Only, it doesn’t have to be stressful! 

If the “how much are YouTube ads?” question is morphing your once peaceful nights into nightmare ravaged husks, then check out our expert team here. Let us help to bring your YouTube campaigns to the next level of marketing bliss.

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