YouTube has revolutionized how we consume video content while simultaneously creating a whole new market for video advertising. True, video advertising was almost entirely confined to television for a long time, even during the advent of the internet age. Yet, today YouTube advertising is now a highly feasible choice with a lot of distinct benefits. As experts observe, purchasing decisions now include checking out YouTube videos, viewing product reviews and how-to tutorials, among others, before making a purchase,
True, businesses and brands have never had a greater opportunity than right now to market their goods and services and collect qualified leads on the channel. While traditional forms of advertising still exist – which includes radio, television, billboards and such, digital marketing platforms such as Google Display Network, YouTube, Facebook, Snapchat, among others, have given business owners more options to showcase and market their brands for their audiences. However, the fact that YouTube has over 2 billion monthly active users, even with all of this avalanche of choices, makes it worthwhile to advertise on the popular platform. With more than a billion hours of video are viewed every day on the website, making it the second most popular in the world, it is evident that businesses ignoring YouTube are practically losing out on the possibility of enjoying a significant portion of their audience base online.
YouTube ads versus other advertising campaigns
A YouTube advertisement is exactly what it sounds like: a way to promote one’s business on the site. YouTube ads are videos, much like the rest of the platform’s content, and they come in a variety of different formats.
When deciding where to place your ads, keep in mind the cost of YouTube advertising as well as the cost of Facebook or Google ads. Recent studies showed that YouTube has lower costs for free trials, clicks, and views than Facebook. Google Ads have a higher cost per click or view, but YouTube has a cheaper cost per click or view. The difference between a YouTube view and a Google click can be as little as a few pennies.
Why YouTube Advertising?
With over two billion users signed on to YouTube each month, this only proves the gargantuan popularity of this social media platform. On average, they watch YouTube on their mobile devices for over an hour every day. With the current craze for Smart TVs, the number of people watching YouTube videos on their television sets has risen precipitously.
The YouTube search engine is second only to Google in terms of search usage, which makes it difficult to ignore. As a result of Google AdWords, it should come as no surprise that YouTube has become a preferred advertising medium around the world.
The only problem with budgeting for YouTube advertisements is that there isn’t a set pricing for them. This, however, is not uncommon in the world of internet marketing. Online, it appears that the conventional norm is that you bid on advertising space and usually take the highest bidder.
The advantages of using YouTube as a medium for advertising
There are numerous advantages to using YouTube advertising over other platforms like Google AdWords or Facebook Ads. Here are just a few of the advantages:
- YouTube’s advertising is more cost-effective compared to other forms of advertising.
- You have complete control over who you want to reach.
- Videos help people feel more connected to a business, which encourages them to return in the future.
- Videos elicit more comments because people are more willing to leave them.
- The conversion rate of the video is the highest.
- YouTube has metrics right in the software (so do Facebook and Google).
- The audience you’re able to reach will be greater.
- YouTube advertising, including payment method and budget, can be readily adjusted.
How much does it cost to advertise on YouTube?
YouTube advertising costs are difficult to pin down because of the wide range of variables. An important factor is the amount of money you are willing to spend, which is directly related to your bid and bid selection. It is important to keep in mind that a typical business budget is at least $10 each day while creating your budget.
Choose the sort of YouTube ad carefully because certain types are more expensive than others in terms of cost. Even the targeting options you choose can have an impact on your ad’s cost. If you want to reach a more competitive audience, you will have to pay more for YouTube advertising.
Cost-per-view is the most prevalent payment method for YouTube adverts. You only pay when someone clicks on or interacts with your ad. If someone sees the ad for at least 30 seconds, or the entire ad in the case of shorter ads, YouTube counts it as a view. The average cost per action or view for a YouTube ad is between $0.10 and $0.30, although this can vary widely
Guidelines for Using YouTube Advertising Budgets Efficiently
Any company owner or marketer worth their salt knows how to answer the question: How much does YouTube advertising cost? In addition, you’re well aware that YouTube’s ad pricing varies. When should you boost or decrease the cost per view on your YouTube ads? How do you get the most of YouTube’s ad pricing without wasting money? Here are the answers to the following queries:
1. Your Goal
Asking “What precise business goal are you trying to achieve with this campaign” will help you figure out “How much do YouTube advertisements cost.” Choose one of these predetermined answers from Google Ads to answer the question:
- Promote your business by increasing sales,
- Generating leads and conversions
- Driving traffic to your website
- Expand your reach and build awareness
However, this is an advanced setting that should only be handled by campaign customization professionals such as a YouTube video marketing business. You can “Create a campaign” without a goal’s assistance.
What’s the point of spending so much time on it? When it comes to YouTube advertising costs, the two most important variables are ad type and bidding technique.
2. Your Financial Plan/Budget Plan
When it comes to local campaigns, starting with a $10 daily budget is a reasonable place to start. This sum should be multiplied by the number of days that your campaign will be active. Before making any adjustments, experts advise waiting at least two weeks for it to gather traction.
3. Targeting Methods To Use
The fun part is about to begin. By using strategic targeting, you are assured that your message reaches the intended audience. To get the most out of your YouTube ads, limit your demographic choices to those that are relevant to your target audience. Your target audience who see your ads will be those who are most likely to buy your product or service based on your buyer profile. When you’re designing your target options, keep in mind these three main categories :
- Location Grouped geographically or by place of origin
- Audience Determines who you are trying to reach with your message.
- Content In this section, you need to determine where your ad will appear.
- You can get the greatest bang for your buck with YouTube advertising by integrating a few key components in your mix of targeting criteria. Views, on the other hand, are far superior to impressions as a measure because they reveal how many times your ad has been seen.
4. What Type of Ad is the Best Fit?
The cost of advertising on YouTube is an important consideration when determining your marketing strategy. Here, you’ll learn about the ad types you should be aware of, as well as how much each type of YouTube video ad costs.
5. Learn the Basics
In order to set up a campaign, you’ll need to have a basic understanding of how everything works, from the overall objective to the bidding technique, from the budget to the targeting options. Perfecting the plan for each corporate goal may necessitate further trial and error. Rather than wasting money on ineffective efforts, folks with limited time and resources may want to consider hiring a video marketing service.
6. Improve Your Advertising Efforts
YouTube ad optimization comes with unique hurdles when it comes to social media video ads, despite what you might think. Your ad can be optimized for YouTube cost per view or rate of view if it isn’t working as well as it should. Improve the view rate by making changes to the ad’s creative (such as the title or end cards) and by putting in or deleting a call to action (CTA).
7. Make Use Of High-Quality Video Content
If you want to get the most out of your YouTube ad spend, make sure your videos have compelling content that keeps viewers interested all the way through. YouTube advertising agencies that also offer video creation services can help with this. In order to launch effectively, you’ll need the support of a video marketing agency.
8. Limit the length of your ads.
If your commercial is too long, it will turn viewers away or discourage them from watching it. Non-skippable videos are notorious for causing this problem. If your video is too long and can’t be skipped, viewers will lose interest and turn away. You’ll get higher campaign results if you make short, punchy videos. Your video should be no longer than 45 seconds as a general rule of thumb. As a result, you’ll have enough time to make a good video without making it too long. You should be able to make your point in a short period of time. Your video must be compelling enough to keep someone’s attention if they just have five seconds to do so. It’s critical to be direct and to the point when writing.
9. Create landing pages that are customized to your audience.
You must always point your audience to useful material while conducting an advertising campaign. Use a landing page that elaborates on the details in your ad to connect them with your company or product furthermore.
Further, you may drive visitors to a specific page by running efficient advertising campaigns. This gives customers a better understanding of your company, products, and services. You’ll need to construct a campaign-specific landing page so you can add important details about your YouTube ad to it. Your landing page is a great resource for anyone who are interested in learning more about what you’re offering. Your page will receive a lot of targeted traffic from this method.
10. Hire a YouTube Marketing Company
When deciding whether or not to work with a YouTube video marketing company, weigh the benefits against the risks. This is especially true for small and mid-sized businesses with tight advertising budgets and even tighter marketing teams. Outsourcing the creation of YouTube ads and videos to a more experienced team can prove to be more cost-effective over time.
11. Monitor the campaigns you’re running
You must track the results of your campaign if you want to know how effective it is. The more excellent ad material you put out, the more you’ll see your business develop. There are metrics available for viewing your campaign’s performance when it is running on YouTube. Metrics like views, likes, shares, and subscriptions may all be tracked using tracking tools. Real-time analytics on your campaign are also available to help you better understand it. Surely, you’ll get better outcomes for your company if you keep an eye on your campaign. So, your YouTube advertisement is going to get better results and help you build your business.
12. What Type Of Bidding To Use
Every penny counts when it comes to YouTube ad costs. As a result, you must be familiar with the platform’s bidding process. When you place an ad, you typically set bids based on the keywords you want to target. Google Ads will show your ad to someone who is searching for a specific term after taking other targeting factors like location into account. When competing brands bid on the same term, the ad of the highest bidder will be shown by Google.
YouTube offers multiple methods for placing a bid. Selecting one that maximizes the cost of YouTube ads is a challenge.
Here’s the lowdown:
- When you use YouTube cost per view, you only pay when someone views or interacts with your advertisements. The duration of a video ad (if it is longer than 30 seconds) or clicking on a call-to-action (CTA) overlay, card, or companion banner count as a view.
- The maximum price you’re ready to spend for your ad to show 1,000 times on the platform is known as the cost per thousand impressions (CPM).
- When a person clicks on your ad and completes an action, such as purchasing a product or filling out a form, you pay a fee called the cost per action (CPA). YouTube advertising in CPA costs between $0.10 and $0.30, similar to CPV.
- Various Types of Ads to Consider
- There are numerous ad formats available on YouTube. These are a few examples:
- DISPLAY ADS: Display adverts only appear on desktop platforms, to the right of the featured video and above the list of video recommendations.
- OVERLAY ADS: For desktop users only, overlay adverts are visible in the lowest 20% of your movie. These are semi-transparent overlays.
- Images or text adverts both qualify.
- SKIPPABLE VIDEO ADS: Most YouTube adverts are of the skippable variety. Ads like these can be skipped after 5 seconds, whether they’re shown before, during, or after a video.
- NON-SKIPPABLE ADS: Viewers must endure non-skippable video commercials before they can see the main video. YouTube has a 30-second ad-free version, however this is being phased out due to little usage. Non-skippable videos usually last between 15 and 30 seconds.
- BUMPER ADS: Bumper commercials are 6 second non-skippable videos that must be seen before the main video can be shown.
- SPONSOR CARDS- they contain information related to the video, such as products mentioned in the main video.
Are You Prepared To Roll Out Your YouTube Video Ad Campaign?
The first step is to educate yourself on the various aspects that go into determining how much YouTube advertising costs.
Despite the fact that YouTube advertising is less expensive and more effective than PPC, the costs can quickly escalate if there is no strategic campaign management in place.
In addition to the expenditures listed above, a YouTube video marketing company may charge up-front and with monthly fees, but it can provide the groundwork for your YouTube advertising efforts.
Your campaigns can pay for themselves over time, and you’ll be making money at a rapid pace. Search for a company partner with a track record of successful campaigns and long-term connections with their clients.
Making use of YouTube advertising charges as part of your overall marketing budget can help your company get traction and make the most of your marketing dollars. As affirmed by industry experts, YouTube commercials are more cost-effective in the long run than other forms of advertising. Indeed, YouTube advertising can be both overpowering and overwhelming at first.
However, the variety of advertising types available on YouTube provide marketers a tremendous toolkit for reaching their target audiences.
Furthermore, with video content anticipated to account for 82 percent of all web traffic by the end of 2022, this is a marketing tool worth mastering. Here at LSI Media, we’re a full-service digital marketing team of professional experts ready to help you with all your marketing and advertising needs for an effective campaign for your business. Stay tuned to our website updates to be always in the loop for fresh marketing trends and innovations in online marketing!