A Detailed Guide on YouTube Advertising Cost in 2024

Youtube advertising cost.

YouTube is one of the biggest social media sites, with over  2 billion users visiting the site daily. With such a massive audience, companies now leverage the site to advertise their products as part of their YouTube content strategy.

When brands want to advertise on YouTube, one of the questions they commonly ask is: How much does it cost to advertise on YouTube?This article will guide you on the same.

Statistics on YouTube Advertising

 A study on the leading brands showed the following:

  • 75% of brands are satisfied with their ROI on YouTube ads.
  • 53% of businesses spend between $100 to $10k monthly on YouTube advertising.
  • The average spend per view of 43% of companies is between $0.11 and $0.4.
  • 48% of businesses allocate 6% to 30% of their budget to YouTube ads.

How much does YouTube charge for Ads?

  • On average, brands pay $0.11 to $0.5 per view.
  • Most businesses set a YouTube budget of $100 per month.
  • YouTube ads are measured in terms of the cost per thousand views.
  • On average, businesses set up a daily YouTube advertising budget of $10 to $50.
  • It costs around $2,000 to reach 100K views on YouTube.

However, the amount you pay will depend on different factors, such as your budget, ad type, and competition. Factors like your preferred ad type, targeting option, and bid amount affect the per-view rate. So, how much does a 30-second YouTube advertising Ad cost? This will depend on the number of views.

How to Maximize Your Returns on Investment on YouTube Ads

When advertising on YouTube, you want to ensure that you get good investment returns. Otherwise, if there are no returns, you are losing money down the drain. Fortunately, there are tips you can use to maximize your ROI on your YouTube budget.

How much is a YouTube advertisement?

Determine Your YouTube Advertising Goal

Before you start advertising on YouTube or starting a YouTube channel, you must have a goal. This could be something like:

  • Increasing awareness of your products or business
  • Lead generation

Many brands prefer YouTube advertising because they pay per-view. Therefore, they can determine their advertising budget depending on how many views they hope to get for their ads.

Set Up A Youtube Advertising Budget

Now, you need to determine how much it will cost you to create a YouTube ad. While we illustrated above the cost of YouTube advertising, it will cost you more than that. This is because you will also need to consider the cost of producing the ad.

If you are doing a video ad, this includes the cost of the scriptwriting, video making, production, editing, and more. If you want to create your video, you don’t have to create something that will win the Oscars. Instead, just ensure that it is attention-grabbing.

Choose a YouTube ad Type.

YouTube has a wide range of ad formats, and you must choose one that is best suited for your products. Remember that the type of ad will also impact your advertising cost. The common types of YouTube ads are:

  • Bumper Ads. These are 6-second long ads that are usually sold per 1000 impressions. On average, these may cost you $10 for over 1000 impressions. But depending on the geographical location and the impression, the cost can go as high as $20.
  • Overlay ads. These are desktop ads that appear on the bottom 20% of a video.
  • Display ads. They appear to the side or below the intended video.
  • Sponsored cards. They show content related to the video. For instance, it can be a mascara ad for a video on makeup tutorials. 
  •  Skippable video ads. These videos allow the viewer to skip them after they have watched for 5 seconds.
  • Non-skippable ads. These instream ads usually appear at the start and end of a video. They are also 6 seconds long and can’t be skipped. They are usually charged on a CPM basis and may cost between $6  and $10 per 1000 impressions.
There are different types of Youtube ads.

Choose your target audience.

The target audience is one of the key elements of a social media marketing plan. As a company under Google, YouTube offers a lot of targeting capabilities. The amount you pay will depend on the audience you are targeting. You can choose the demographic you want to reach depending on:

  • Demographic. You can use age, gender, and location to determine your target demographic.
  • Interest.  YouTube ads also allow you to choose an audience interested in your niche.
  • Life events. You can also target users depending on a certain life event or milestone that interests them in your products or services.

Set a daily ad budget.

You can now set up a daily budget for your ad. Many companies usually start at a small budget of about $10 daily. The goal is to help them test what works and what doesn’t. However, you can increase this budget depending on your goal. Some of the factors to consider when setting up a YouTube advertising budget include:

  • The time you will be running the campaign.
  • Your daily budget will enable you to achieve your goal.
  • If there are low-cost ad budget options, consider using them.

Factors Affecting YouTube Ads Cost

Youtube billing is determined by several factors, such as:

  • Bidding range. Like Google, YouTube advertisers bid on the amount they would like to pay for their videos depending on the number of bidders and how much they bid. The cost can be low or high depending on the number of bidders.
  • Target audience. Some targeting can cost more than others. For instance, if you target an audience segment that will make annoying decisions, you will likely pay more.
  • Ad type. As we explained earlier, the ad format will also affect the YouTube ad cost.
Choose an ad type.

Final Thoughts

Undoubtedly, YouTube videos can give you a good return on investment, especially when you build a personal brand on YouTube. The first step towards advertising on YouTube is understanding the YouTube ad cost. After that, you can set up your campaign and the necessary YouTube analytics to measure its effectiveness. With our guide, it should be easier to understand how much you are expected to pay.

Benjamin is a writer with over ten years of experience in the content writing field. He holds a Bachelor's degree in  Journalism from Strathmore University. He writes on various niches such as product reviews, self-improvement, and making mone online. You can find him curled on his couch with a self-improvement book when he is not blogging.