In several ways, YouTube is the new TV. As television engagement has began to decline over the years, YouTube viewership has boosted. In fact, almost every day, the world spends around 1 billion hours on YouTube. Due to the high viewership of YouTube, advertising on this platform has become very popular. So, how much does YouTube advertising cost and why it’s a great investment? Well, keep reading on to find out!
How Effective are YouTube Advertisements?
Due to the tremendous reach and viewership of YouTube, advertising your business/product/services is a lot more accessible than conventional television advertisements. In fact, television ads cost way more than YouTube ads. And, by advertising your brand on YouTube you have the ability to reach over 2 billion logged-in users that visit YouTube every month. This actively represents that businesses can reach a large pool of potential customers with a short advertisement that requires little investment.
So, what are the benefits of YouTube ads? Well, according to Google, people who view YouTube ads are more likely to further invest their time in wanting to learn more about the business or product or even make a purchase.
How effective a YouTube ad can be in terms of getting people to engage also depends on the type of ad a business invests in. We’ve broken the types of ads below;
Types of YouTube Ads
Basically, Google provides a few variants when it comes to advertisements on YouTube,
TrueView in-stream ads: This is the ad you see right before the video you want to watch starts playing. Often times the viewer has to watch the ad for the first 5 seconds and then they are presented with the option to skip the rest of the ad or watch the entire ad.
TrueView video discovery ads: Not many people might be aware of this type of YouTube ad, but it is still very common. Whenever you search for a video on YouTube, you will see the video discovery add on top of the search result. This ad may also show up in the right-hand video side-bar.
bumper ads: These types of YouTube ads are short and present no option for the viewer to skip them. It is one of the best ways to make sure the viewer watches the entire ad in order to properly establish brand awareness and increase recognition.
Other than this, Google gives you the opportunity to run display ads, overlay ads, and sponsored cards on YouTube. However, these are ads are extensions of the display network and not video advertising.
Cost of YouTube Ads
When you advertise on YouTube, there is no minimum or maximum limit. Basically, when it comes to advertising on YouTube, you need to determine how much you should spend on a YouTube ad and know how much does it actually cost to advertise on YouTube. This will help you make the right decision when advertising on YouTube.
Generally, YouTube video ads can cost around $0.10 to $0.30 per click. However, this isn’t the standard cost, but it is the rate a business may face when it invests in YouTube advertisements. The cost of YouTube ads varies and depends on several factors as well.
So, what are those factors? Well, some of them are the type of YouTube ad, your bid, your bidding selection, and your target audience. Generally, these are the factors that will influence how much investment you will have to make when advertising on YouTube.
Why Advertise on YouTube?
Now that you know how much does it cost to advertise on YouTube, it’s time to understand why you should advertise on YouTube. Is advertising on YouTube worth the company’s time, effort, and money? Well, Yes!
There are several advantages of advertising on YouTube. Firstly, YouTube reaches almost one-third of the internet. Secondly, mobile ads have proven to hold a user’s attention with more ease. And, lastly, 68% of YouTube users watch videos to help them make purchase decisions.
So, why should you advertise on YouTube? Well, why shouldn’t you? With the help of YouTube, you will reach the right audience and make sure your message gets to them effectively. In fact, YouTube is a brilliant platform for your business to expand its reach and with the advertising options available, you will gain more legit leads for your business.
So, how much does it cost to advertise on YouTube? Well, on average, YouTube advertising costs are $0.10 to $0.30 per view or action and the average daily budget for YouTube advertising amounts to $10.