YouTube is the second broadly famous search or questioning engine in the world.  YouTube has approximately 2.4 billion active users and approximately 1 billion monthly viewers.  It’s not hidden that YouTube is an incredible advertising platform.  The vast amount of data available to advertisers and their ability to drive measurable ROI on their advertising spend.

YouTube ads can provide incredible outcomes, but many makers and startups have little marketing funding.  They are reluctant to spend money on a video and run an ad because they think it will be too expensive.

The average YouTube ad cost per view (CPV) on YouTube is $0.010–$0.030 depending on ad format, placement, and industry.  If you have a video with 1000 views, you will pay around $10-$30 for those views.

It can cost around $2,000 to reach an average of 100,000 viewers.  It’s not much if your ad reaches your target audience.

But there is much more to explore.

In this guide, we’ll cover the cost of YouTube ads based on several factors, such as video ad formats.


Factors affecting the cost of YouTube ads

The expense of YouTube ads varies relying on location and variety of ads.  Here are some factors that will affect your price:

Audience targeting: Let’s say you want to target a specific audience (for example, people living in San Francisco).  Again, if you’re going to reach a wider audience (everyone in the US), you’ll pay more for that.

Video length: The longer your video is, the more expensive it will be—because advertisers will pay for more screen time.  Shorter videos generally cost less than longer videos.

Ad placement: Ads that run before or during a video usually cost more than ads that run below the clip or to the right of the video’s description section.

Video quality: High-quality videos typically attract higher bids from advertisers because they provide better production value and are more likely to capture viewers’ attention.

Channel niche: The niche of your channel will affect your YouTube advertising costs.  If you are promoting a niche with low competition and high traffic, you will get cheaper clicks than if you are promoting a highly competitive niche with low traffic volume.


YouTube ad format

As referred to earlier, a lot of aspects influence the cost of YouTube advertising and the expense of YouTube ads.  One of the key factors is the type of advertising you are running.  There are three main types: True View in-stream, True View in-search, and True View in pre-roll.  These names may sound difficult.  So YouTube has simplified the names now.

True View in-stream ads are video ads that recreate before or during a video on YouTube.  There are two major kinds – skippable and non-skippable in-stream ads.  These video search ads help people find and watch your videos.

You may be wondering how you get charged for a True View ad.  In general, YouTube only charges you if someone views your ad for at least 30 seconds (unless it’s shorter).  YouTube charges you if someone somebody clicks on your video search ad.  On your ad thumbnail.  Skippable video ads are the most popular option among advertisers because users are most likely to pay attention to them before hitting the skip button.  Users discover these ads slightly irritating because they are skippable, as disagreed with non-skippable.


YouTube ad formats include:

Display advertising

Display ads are banner ads that run above or next to YouTube videos. They are usually utilized to encourage products or services directly connected to the content public is viewing.

You can make a video and compare it to famous phrases that the public in your niche regularly searches for. You can then encourage that video through a display ad.  By doing this, your ads will appear just as relevant to searchers as other feature videos on YouTube.


Overlay ads

You can make overlay image ads that occur on top of other people’s videos.  These ads can be beneficial because if people click on the ad they can be taken to your channel.  Additionally, overalls image or text ads can appear in the bottom 20% of the video, which can help capture people’s attention.


Skippable video ads

Skippable video ads are sometimes called “skippable pre-roll” or “skippable in-stream”, which are ads that you can skip after 5 seconds.  The skippable video ad will appear before the content that the viewer wants to watch.  If they are not interested in the ad they can skip the ad or watch it till the end if they want more information about the advertised product.


Bumper ads

Bumper ads are short-form videos that occur before or in the middle of a YouTube video.  Bumper ads are an incredible manner to fast and efficiently boost your channel, product, or service.

Your earnings for bumper ads are based on the number of impressions they get.  YouTube ads cost per thousand impressions, or CPM, which is how much you’ll pay for every 1,000 views of your ad.


Tips for developing useful video ads on YouTube

While it may seem like creating a YouTube ad is easy, there are many factors involved in creating a successful video ad campaign.  If you want your ads to get clicks, conversions, and leads, you need to make sure they are optimized for your target audience. Your ads will be optimise by

Here is some advice for developing useful video ads on YouTube:

Use appropriate keywords in your title and description.

Include an image in your ad copy.

Make sure your thumbnail matches what people see when they click on it.

Write a clear and direct headline with a strong call to action.

Make sure you’re targeting the right audience.

Make sure you use high-quality video for your video ads.



YouTube advertising costs are based on a bidding system for ad placement, similar to how other online advertising platforms work.  You need to set a daily budget for your YouTube advertising campaign.

You can set a budget anywhere from $10 and up, depending on your initial experiments and how much you’re willing to spend.  You only pay when someone engages with your ad, which is counted as viewing a skippable ad for 30 seconds or clicking a call-to-action on a display ad.

Before setting your bidding options, make sure you’re doing your targeting.  YouTube’s bidding suggestions change as you change your targeting.  Typically, you bid by CPV (cost per view).  This means that you are willing to pay up to your bid number for each view (30 seconds or more).



Sometimes your problem may be a lack of exposure.  This may be because competing companies have outbid you for the best ad positions.  You can experiment with a higher bid and then see how your ads perform with the higher exposure.

You will find that you will often get the best overall results if you are willing to increase the amount you pay for your YouTube advertising.  Skimping on costs can hurt your overall ROI and profit.



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