How Much Do Youtube Ads Cost?

Day after day, the online community is getting more attracted to video content.  It’s no brainer then why lots of brands and small businesses are investing in video content as an integral part of their digital marketing strategy. Several platforms provide a playing ground for these video contents, but YouTube stands out for us for obvious reasons.

With over 30 million visitors per day and about 5 billion videos watched daily, YouTube has become a top destination for video content marketing. A lot of marketing agencies have attested to the fact that YouTube delivers high ROI on video Ads. However, the dynamics of YouTube video Ads remain a mystery to many business owners and marketers.

In this piece, we will provide you with insight into the workings of YouTube Video Ads. At the end of this article, you should be able to understand the concept of cost per view, different types of YouTube videos, and ultimately, how YouTube bills advertisers.

Understanding the Concept of Cost Per View (CPV)

YouTube adopted the ‘Cost per View’, or CPV, model as its billing strategy for video content marketing. This is a basic pay-as-you-go model that is designed to track the audience’s interaction with the video content. This means that an advertiser will only pay for the number of people that viewed the video by the end of the Ad cycle. So, this billing model will help small business owners decide if the Ad campaign is worth the investment.

However, there is no definite pricing for the Cost Per view. The cost is determined by several factors. For YouTube Ads, the following factors can influence the Cost Per View;

  1. The type of Ad you choose for the Video Content
  2. Your preferred bid amount for the Ad Campaign,
  3. The section you selected for your ad Campaign
  4. Your target audience

An analysis of all the above factors will enable YouTube to determine how much to bill your ‘Cost per View’.

Different types of YouTube Ads that influence the Cost of Advertising

As previously mentioned, the type of Ad you choose determines how much YouTube is going to bill you. We will look at 6 common types of Ads YouTube offers, from videos to images. This will enable you to determine which of them fits perfectly with your budget and your digital strategy for 2020.

1. YouTube Display Ads

A YouTube display ad is simply an image or infographics that show up on the right corner of YouTube feature videos assuming you are viewing from a PC. The still image or animation is, however, clickable.

YouTube Display Ads is only visible to visitors using a desktop PC and if the visitor decides to have a full-screen view of the feature video, the Display Ad disappears completely. Aside from that, the Display Ad is ergonomically positioned to get the viewer’s attention without interfering with the feature video.

2. YouTube Overlay Ads

That semi-transparent banner that shows up at the bottom of the feature video is known as an Overlay Ad. This Ad is also only visible to visitors using desktop PCs and the banner is clickable.

The Ads are ergonomically positioned at a height where it easily gets the attention of the viewer. They are transparent enough to be allowed to display while you watch the video and conspicuous enough not to be ignored. It’s a masterstroke. However, even if a visitor insists on closing the Ad, it has already made an impression and your brand or product has been seen.

3. YouTube Skippable Ads

A skippable video ad is that particular Ad that plays alongside the feature video. It can either play before a visitor is shown the actual feature video or pops up midway into the viewing. They are usually very short and sharp videos not more than 13 seconds.

It is called skippable Ads because a visitor has the option to skip the Ads after the first compulsory 5 seconds. This happens to be the major shortfall of this particular Ad type. However, this can be harnessed by ensuring that you make the initial 5 seconds of your video very compelling.

4. Non-Skippable YouTube video Ads

A non-skippable video ad is the same in behavior and display as the skippable Ads. The only difference is that a visitor or viewer is compelled to watch the video until the end before proceeding or commencing with the feature video they came to see.  This type of Ad is also limited to visitors viewing from a Desktop.

This is a very rewarding type of Advertising because it guarantees that the viewer must see it. So, you are sure that you are getting a good ROI on your bid.

5. YouTube Bumper Ads

A bumper ad is everything you want in a non-skippable video ad and more. It is shorter and more responsive across many devices.  This means that it can be viewed from both a mobile device and a desktop PC. They can be viewed on both desktop and mobile. With a maximum duration of 6 seconds, it has proven to be very effective due to the reduction in the attention span of online visitors.

6. YouTube Sponsored Cards

A sponsored card is placed on feature videos that are talking about similar content. For instance, if you pay for a sponsored card to advertise a beard growth product, the sponsored card will only display on other feature videos talking about beard growth or related topic. They are clickable and can lead the viewer to your landing page.

So How Much Do YouTube Charge for Ads?

YouTube Ad cost falls between the range of $0.10 – $0.30 per view.  This means that, if you want 10,000 people to view your Ad, then you should have a budget of about $2,000. However, what you spend on YouTube Ad campaign is completely up to you. You can start your CPV bid from as low as $0.01.

With knowledge of the different types of Ads, average Cost per view, and the factors that influence them, you should be able to plan and determine the amount you want to spend on YouTube Ads for optimum performance and conversion. Always remember ‘Testing leads to failure, and failure leads to understanding’. Test all the ad types to see what works best for your business.

Video advertising is an amazing way to get your name out there, but it’s not for everyone. Before you decide to run video ads, you should ask yourself how compelling a video advertisement would be for your business, are you willing the make the investment for a great looking video and do you have the right video marketing partner?. Think about whether you want to show a video where the messaging is the important aspect of the content, or whether you are simply looking for a click back to your website and a conversion. Contact The Kool Source today for help with your video marketing needs.

Latest posts by Eric Woodson (see all)

1 Comment

  1. Ojedokun Adedamola

    Hey Eric,

    Nice post here, thumbs up.

    Love your angle on this. I appreciate this info!

    Cheers.

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest