How Much Does YouTube Advertising Cost? A Helpful Guide

Get this: YouTube has almost 2 billion visitors streaming movies, TV shows, and more every single month. So, if you're curious about how much Youtube ads cost, you should know that it's already well worth the investment.

Are you wondering how much does YouTube advertising cost?

If yes, you should check out our guide on the YouTube ad rates that you can expect.

How Much Do YouTube Ads Cost?

With billions of users logging into YouTube monthly, it has quickly become the number one place to advertise to a wider audience.

If your business is considering placing an ad on this video streaming platform, you might be wondering: how much does it cost to put an ad on YouTube?

Luckily for you, the answer is simple.

You can expect to pay an average of anywhere between $.10 and $.30 per action or click. In case you're not great at math, that equals about $10 per day. Also, you'll only be charged when someone clicks or engages with your ad.

However, since this is only an estimate, be prepared to pay less or more depending on your ad's clickability factor.

Standard Cost of YouTube Ads

YouTube doesn't have a minimum ad spend amount. Of course, this makes most business owners wonder how much it costs to run ads and how much you should spend on an ad.

First of all, it's crucial to keep track of when you have to make payments for your advertising campaign. This includes any time that someone clicks on your advertisement and when someone streams it completely. But here's the catch.

The total amount of cash that you'll spend on ads depends on two factors - whether you're paying for clicks or views. As we mentioned above, chances are that you will pay up to $.30 for each person that clicks on your brand's advertisement.

However, there is no standard cost of YouTube ads. To put it clearly, your YouTube ad spend varies depending on:

  • The quality of your video

  • Your targeted audience

  • Your advertising campaign goals

Make sure that you consider how much you'd like to spend on an ad per day. For example, if you want to pay more than $10 a day to place an ad on YouTube, be our guest.

Pro tip - the more that you know about your ad's performance, the more money you might spend.

On top of that, you'll pay for every time someone views your ad too. That's why it's so essential to have a max amount that you'd like to shell out on ad views to ensure that you don't blow your budget.

Factors Influencing YouTube Ad Cost

We encourage you to take a look at a couple of factors that'll influence your YouTube ad costs. For instance, the amount that you'll spend is dependent on four things:

  • Your audience targeting choices

  • Your ad bidding choices

  • Your ad bid

  • Your advertisement type

Your ad bid will have the biggest impact on the cost of your YouTube campaign. In fact, this is even more important than your ad bidding choices.

That's because it will help you set a solid amount for what you want to pay for a view or a click.

Most Popular YouTube Ad Formats

News flash-  there are several different video formats on YouTube ads.

Our general rule of thumb is that you will pay more for larger ads and enhanced advertisement exposure. Think about it this way. The most popular kinds of ads on YouTube include:

  • Display ads

  • Overlay ads

  • Skippable ads

  • Non-skippable ads

  • Bumper ads

  • Sponsored cards

In case you didn't know, display ads will pop up on the right side of a featured video. Plus, they'll pop-up above the list of suggested videos to watch. 

Overlay ads are nearly invisible campaigns that will appear over a section of a video. But don't worry - overlay ads only appear on the lower 20 percent portion of a video. Besides this, they'll also give users the chance to exit the ad as soon as it pops up.

As for skippable ads, these will appear after, during, and before a video's content. Taking up the entire video's box, they'll have an auto timer that will create a  "skip ad" button. Usually, your ad will play for at least five seconds before this option becomes available.

How about non-skippable ads?

Non-skippable ads make users watch the entire ad before they can view their regularly scheduled content. However, these video advertisements are usually short and sweet, lasting only a couple of seconds.

On the other hand, bumper ads always last about six seconds. They have to be streamed before a user can continue their usual content. The best part is this -these ads are super direct and to-the-point.

Lastly, sponsored cards show information that may pertain to your company's videos. Not only can sponsor cards show your company's products, but they encourage viewers to engage with your brand's content as well.

YouTube Advertising Cost is Worth It 

When it comes to YouTube advertising costs, we believe that the reward is worth the price. Thanks to our handy guide, you'll never have to Google "how much does Youtube advertising cost?" ever again.

From display and overlay ads to skippable and non-skippable ads, there are so many different types of ads to choose from.

Have fun playing with different options like audience targeting and ad bidding. Don't forget about mixing up ad bids and advertisement types.

Found what works for you yet?

If so, then we encourage you to increase your monthly ad spend. This will put your ad in front of a larger audience and increase the number of visitors engaging with your brand's products.

Want to learn more about digital advertising?

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