The answer to how much do YouTube ads cost depends on the type of YouTube ad campaign your business selects. Your campaign goal, advertising budget, and ad placements all impact YouTube ad costs.
Generally, YouTube ads are based on a bidding system that determines the price of each video ad placement. You can choose between ad placements on the YouTube search results page, in-stream videos, out-stream videos on the Google Display Network, or within YouTube mobile apps. The price of your ad is determined by the number of other users that are also bidding for the same video ad placement. In addition, the bidding options you select will further influence your YouTube ad cost. For example, if you are using a cost-per-view (CPV) bidding option, your video will only be charged if a user watches 30 seconds of your ad or interacts with it by clicking on a call-to-action overlay, companion banner, or card.
Breaking Down YouTube Ads Cost: What You Need to Know
In general, ad prices are higher during times of increased demand for the ad placements you choose. The cost of a video ad is also influenced by the competition for ad placements and by geographic markets. You can use Google AdWords to optimize your ad campaigns and ensure that they are cost-effective by assessing the return on ad spend (ROAS). Using the right video ad formats, customizing targeting, optimizing bidding, and setting a daily or campaign budget will all help to reduce your YouTube advertising costs.