How Much Does It Cost to Advertise on YouTube? A Basic Guide

Did you know that advertisers are expected to spend upwards of $6.87 billion on YouTube advertising by 2022? But how much does it cost to advertise on YouTube exactly?

Today, we’re going to break down the costs of advertising on YouTube and why you should include YouTube advertising in your marketing budget.

Advertising on YouTube Should Be Part of Your Marketing Strategy

YouTube receives, on average, 30 million visitors per day who watch nearly 5 billion videos during that time. This provides marketers with a golden opportunity to get a plethora of consumers to see their ads.

Advertising plays a significant role in influencing consumers’ purchases, but it doesn’t do much good if your target customers don’t see your ads. By leveraging YouTube’s vast audience, marketers can increase their ads’ effectiveness while sticking to their advertising budget.

How Much Does It Cost to Advertise on YouTube?

Your YouTube advertising cost as a business can fluctuate, but on average, YouTube advertising costs between $0.10 and $0.30 per view or click. For example, if your ad costs $0.20 per view and your ad receives 3k views, your cost will be $600.

How Much to Advertise on YouTube

How effective this marketing strategy is for your business will depend on your niche for YouTube advertising. Beauty and gaming are two of the most popular niches on YouTube, with popular influencers such as Nikki Tutorials and Markiplier having millions of followers.

You’ll want to set your marketing budget accordingly if you’re advertising in highly viewed niches. For example, if you’re a cosmetics company advertising on one of Nikki’s videos at $0.10 per view, you could end up paying $100k since her videos routinely surpass one million views.

Types of YouTube Ads

YouTube advertising prices can vary depending on the type of ad you’d like to use. Here’s a breakdown of the types of ads on YouTube:

• Displays: Viewable on desktop browsing only, appear to the right of the video.

• Overlays: Semi-transparent ads that appear in the lower part of the video on desktop viewing.

• Sponsored Cards: Ads for products featured in the video’s contents.

• Bumper Ads: 6-second ads played before a video which viewers cannot skip.

• Skippable and Non-skippable Video Ads: Appear before, during, or after a video. If an ad is skippable, the viewer will have the option to skip it after 5 seconds.

When choosing which advertising format to use, do some research on which ad types work best for your niche. However, skippable video ads are the most common type of advertising on YouTube and receive the best response from consumers.

Will YouTube Be Part of Your Advertising Strategy?

Now that we’ve answered the question “how much does it cost to advertise on YouTube,” will you add YouTube advertising to your marketing arsenal?

YouTube’s popularity as a viewing platform will only increase as we move away from traditional entertainment like cable TV. Any business looking to tap into the younger generations’ consuming power will need to incorporate YouTube ads as part of their digital advertising strategy.

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