YouTube ads price. What is this due to?

In the new digital era, although everything seems familiar, there are a lot of things that we still don’t know. One of the things that people wonder the most is how much it has to be YouTube ads price.

Despite the fact people think there are other more effective marketing strategies, there are studies proving that more than 85% of users discover new brands on YouTube through video campaigns.

That’s why, if you are interested in having more knowledge about the YouTube ads price, we have resumed the most important information in this article.

Average cost of YouTube ads

In order to know exactly how much it will cost to upload an ad on YouTube, the best way is to start creating it. However, there is an average cost of YouTube ads. The average cost of YouTube ads is between $0.10 to $0.30 when it comes to PCV and CPC. 

Additionally, you have to consider the daily budget, which is how much you are willing to pay. For any YouTube campaign the recommended daily budget is $10, but you can give your campaign the daily budget that fits better.

The average cost of YouTube ads is between $0.10 to $0.30 per view.

You have to remember, although it is an advertisement, to have all your video content protected from being used without permission with the YouTube Content ID technology that will track and block any user that tries to use your ad without your explicit permission.

What factors determine the YouTube ads price?

There are a variety of factors that determine the YouTube ads price. These factors include the type of advertisement, the length, the existing competitors and, specifically, the audience and their interactions with your ad.

YouTube configures their ads prices with the main metrics that use Google Ads or Facebook Ads. These ones are the Cost Per Click (CPC), Cost Per Mille (CPM) and Cost Per View (CPV) in case your advertisement is a video.

  • Cost Per Click. The CPC represents the amount of money you pay per click on your ad so, everytime someone clicks on your ad, you will have to pay.

    If the CPC is 1,25$ and you want to reach around 4.000 clicks on your advertisement, you will need a campaign with a budget of nearly 5.000$.

  • Cost Per Mille. The CPM is the price you have to pay for one thousand impressions or views of your advertisement. It is calculated by dividing the cost of your ad placement by the number of impressions that it has.

    As an example of calculating CPM, if your ad budget is 3.000$ and it has 10.000 impressions, your CPM will be 300$.

  • Cost Per View. With the CPV you will have to pay when your video is watched. A view is counted every time a viewer watches 30 seconds (or the whole video if it is shorter) or interacts with the ad.

    So, if you have a maximum CPV (how much are you willing to pay per view) of 0,01$ and your budget is 2.500$, you will reach around 250.000 views.

Important Kpis youtube ads price

That’s why we told you before that the YouTube ads price not only depends on the type and duration, but also on the goal you want to achieve with the campaign, the audience and their behavior when they watch your advertisement.

Before starting with creating an advertisement for YouTube, remember that having a good SEO on YouTube will help you reach more audience with your ads, because YouTube will position you better.

How to create YouTube ads

Well, this is obvious, but first you need to record your advertisement video in order to start your YouTube video campaign. Once you have your ad ready, you can start the process to upload your video to YouTube.

Maybe you are thinking right now if the platform tells you before starting how much it will cost to put ads on YouTube, but as we told you it depends on different factors so you will have to complete your campaign configuration first.

  1. Go to Google Ads

YouTube advertisements work with Google Ads so, in order to carry up your campaign you will need a Google Ads account. If you have never thought about creating one, the only thing you need to do is search “Google Ads” on the Google search bar and follow the instructions.

Google Ads is a great tool if you are planning to do more than just one advertisement because it will calculate the different YouTube ads cost and help you consider the audience you want to reach.

When you have finished creating your Google Ads account, you have to click on the “new campaign” button and continue the process.

All the Google related advertisement campaigns are done through Google Ads

  1. Choose your goal and the type of the campaign

The next step is to choose the goal you want to reach with your campaign and what type of campaign is going to be.

As you can see in the image, there are some different types of goals you can choose. You can start your campaign with the goal you consider fits the best but, if it’s your first time doing a video campaign, we recommend you choose “brand awareness and reach” in order to let YouTube users know your work.

prices youtbe ads administration target

When you feel sure about what goal you want to reach, the next step is to choose a video type campaign to appear on YouTube.

  1. YouTube Ads price by where it appears

When you choose the video type campaign, Google Ads will show you some different ways that your ad can appear on YouTube and this is one of the factors that determine the price.

Before uploading the video, when it comes to music videos, the best you can do is upload it from a Youtube official artist channel. You can learn more about how you can get an official artist channel before starting your campaign.

Youtube ads price counters

  • Skippable in-stream ads. 
    These types of ads are the ones that you can skip when five seconds have passed.

    YouTube will charge you when the user has watched 30 seconds or the entire video if its duration is less (CPV). If the user clicks on the button to see more or interact with the video, YouTube will charge you too because of the CPC.

  • Non skippable in-stream ads
    These types of advertisements are the ones that last between 7 and 15 seconds and the user can’t skip them. It can be shown before, in the middle or after a video.

    These advertisements are paid depending on the impressions it generates (CPM) that means how many people have watched the ad.

  • Discovery ads
    These ads appear on YouTube results depending on the keywords the user uses and it is shown before the organic positioned content, alongside the related videos or in the home page.

    They show a thumbnail, a description and a CTA (call to action) button. That’s why YouTube charges you with the CPC method. In other words, YouTube charges you every time someone clicks on the thumbnail.

  • Bumper Ads
    The bumper ads last 6 seconds and are non skippable. This means that the ads can be shown alongside a skippable ad.

    People normally use the bumper ads when they want to share a short message or in order to complement other advertisements campaigns. Like the non skippable ads, YouTube charges you depending on the impressions (CPM).

  • Out-Stream Ads
    These types of advertisements work like the Display ones (which appear on Google associated websites and some social media) and you can see them all along the YouTube app. However, the most important characteristic is that these ads only appear on mobile devices.

    It can be banners, in-feed ads and more, and you will have to pay depending on the impressions (CPM).

  1. Choose who you want to watch your YouTube ads

When you have finished considering the best way to show your ad, it is time to choose who you want to watch it when you upload it.

Google Ads will help you select the audience for your advertisement, showing you constant approximations of the impressions and the cost of the ad every time you change some information.

Google leads youtube ads

As you can see, there are a lot of categories to choose like lifestyle, interests, age, location, if they have children or pets… so there are no excuses in order to reach your perfect and personalized target.

If you are planning to promote a music video on YouTube, maybe you would like to read how music works on YouTube first thus you won’t have any doubt about the configuration.

In conclusion, maybe a YouTube ad doesn’t cost as much as you thought, but you have to be careful considering the different factors so your advertisement helps you reach your goal.