How Much Do YouTube Ads Cost In 2020

How Much Do YouTube Ads Cost In 2020?

Businesses are pursuing to invest in YouTube Ads, but they struggle on – How much do YouTube ads cost in 2020? This article discusses all the important stuff you need to know before you start your YouTube ads.

So, to begin with, let’s know about Cost-Per-View (CPV).

What is Cost-Per-View?

CPV is the billing model for video marketing in social media like YouTube. The basic idea for this is to analyze the viewers’ interaction in the video.

When an advertiser ad on YouTube, they pay for the total view they get in their ad. This principle of YouTube ad is useful to figure out the total number to the ad viewers and the money that cost to advertise per view.

Thus the cost per view helps to determine whether it is a relevant business for your business.

cost per view

Cost Per View

Factors that determine Cost-Per-View

CPV depends on several factors. Advertisers prefer to analyze deeper when it comes to investing, especially in the new platform like YouTube.

In the case of analyzing  CPV for YouTube ads, the factors that effect are:

  • The ad type you choose for your ad
  • The amount you bid for your ad placement
  • The section you choose for your ad placement
  • The customer you segment to target

This data from the YouTube help the advertisers to calculate the actual amount of that cost per viewer.

So, what if someone chick on the ad?

Your cost for that will not be charged in CPV. When someone clicks on your ad, you will be charged for cost per action CPA.

Whether your ad is for views or clicks is depended upon your ad type. YouTube offers various ads format to present your ad to viewers, and the motive of all these formats is to generate revenue to the business but differ in presentation style.

If you want your viewer to interact with your video, then you can embed CPA, which takes your viewer to a landing page then you will pay on the base of click.  And if your aim is to create awareness, then creating a general video can perform well for you.

Hence, if you have CPA in the ad, then you are charged for cost per action, and if your ad is for awareness, then you are charged for cost per view.

What is the standard amount for investment?

When you invest in YouTube ads, you invest daily. This means you need to allocate your budget daily for your ad campaign.

Most of the advertiser prefers to invest $10 or more to increase the performance of the ad. If you are a startup, then $10 would be enough to start with.

How much do YouTube ads cost?

Cost is one of the critical factors that most of the advertisers are concern about. YouTube is considered to be a fair platform in term of cost as you as an advertiser will only pay when viewers watch the full ad or click on the ad.

The cost of your YouTube ad depends on factors like your targeting audiences and competitiveness of your industry.

For example, if you are targeting female of 15-50 age with shoe interest then this will cost you higher than, say, if you target 15-25 age female with shoe interest. This means that if your target range is wider it will cost you more, than if your target range is smaller.

The average YouTube ads cost between $0.10 to $0.30 per view. Though this is the average cost, there is no minimum cost or maximum cost in YouTube Ads. Your CPV can start from $0.01 to any range you can think of.

With this data, we can state that if one viewer clicks your ad, view of ad, or get engage with your ad, you have to pay.

This is an average figure, thereby may not suit all the business. So, your business may pay less or more. The bottom line is, there is no clear figure on the actual amount of money required for YouTube ads.

The good news is that you can edit your ads depending on your monthly or bi-monthly report for your ad to perform well.

How can CPV calculate?

CPV is measured by dividing the total cost by the number of viewers. CPV can increase or decrease depending on the several factors which have been discussed above.

Can bidding affect cost-per-view (CPV)?

The key to the successful YouTube ad is bidding on the right ad section. When you are bidding on YouTube, the amount you spend changes depending upon the ad section you bid for and the content you use in your ad video.

As mention before, when you are preparing to advertise on YouTube, you set a daily budget. Your daily budget might fluctuate because, as an advertiser in digital, you would want to keep experimenting with your ad in a variety of formats in a different place.

As discussed above, $10 is the standard amount to start with. Thereby, many advertisers prefer to bid by $10.  The strategy to this is to analyze the performance in the first stage and increase the bid price according to the result.

YouTube Ads Cost

YouTube Bid

Therefore your bid also can fluctuate. As the bid keeps fluctuating, your CPV also fluctuates.

Optimizing your YouTube Ad works best

The only formula to optimize your YouTube ad is by reviewing your statistics report and understanding what they are saying. The most important stats that you need focus on are view rate and click-through rate.

These two stats of the report reveals whether your ads are being acknowledged by the viewers or not and whether your ad is performing as planned.

The problem that accrues while analyzing the report is that your video ad not being appealing enough. This the major problem that arises in most of the video.

This problem can be very complex for businesses to deal with, thereby some of them give you. At this point, what you can do is experiment with ad formats, ad placement, and bidding amount.

Hence this strategy is very effective when you give some time and effort to understand which technique gives the best result.

How to make more from less budget?

YouTube this the most powerful network that can create a huge impact on digital marketing. Here are the tips that you can take to make your YouTube Ad powerful.

Choose the right customer

If you want your YouTube Ads cost to perform excellently deriving the best result, then you have to ensure that your ad is reaching the right customer. In order to determine this, you need to invest some money as well as some effort.

Your ad can only be labelled as a successful ad campaign if you are able to reach potential customers. YouTube has a targeting option that lets you segment the customer.

YouTube Ads Cost

Interest target

You can filter your customers on the base of:

  • Demographic group: This means that you can target the base of age, gender, income, or parental status.
  • Interest group: Targets on the base of information your viewers are interested in watching on YouTube.
  • Retargeting group: These are the people who have already shown their interest in your product. Retargeting is done to keep your existing customer engaging.
  •  Keywords: The algorithm collects the data from your viewers’ search history and on the base on that the ad is presented.

High-Quality Ad Video

The first thing that draws viewers’ attention is video quality. Even though your ad video content is to the point, but your ad has a low video quality, then it is very obvious that your ad will not provide an optimum view.

When your ad quality is high, the chances to keep your customers’ mind in your ad increases if you are showing your brand value or product information to the viewers than it will get attention only if invest in video quality.

Along with the video quality, you need to know what kind of content your customer will praise. As an advertiser, you need to understand the importance of creativity in content.

Short Ads

Most of the advertiser prefer short ads as a large portion of the viewers admire those type of ads. Businesses work as per the demand of customers. Therefore advertisers have to perform in the way the customer wants.

When you create long and non-skippable ad videos, people will lose interest. This can result in a poor static report.

Thereby, when you create a video ad, you need to make sure that your content is informative, entertaining, and creative. This type of video has a high chance of increasing views.

Relevant landing page

When you run advertising on YouTube, it is necessary to decide where you direct your viewers. You would want to connect your viewers to the landing page that enhances the information in your ad.

When you link your customer with the appropriate landing page, your customer will learn more about your products, services, and business. Expanding your business through a relevant landing page is what advertisers should give preference to.

YouTube Ads Cost

Landing page

If you don’t have a landing page, then you would want to create a landing page, especially for your ad. It is a great way to make your ad relevant and effective.

Monitor your ad

Monitoring, the essential element in YouTube ad that you can not afford missing it. If you want to understand the effectiveness of your ad, you better start monitoring your ad performance.

YouTube gives the advertiser access to metrics that allow checking whether the ad is performing as planned or not. You can monitor the number of likes, share, views, in your ad.

The most exciting part is that you get real-time insights about your ad to understand it better. With this, you will have an active ad that drives better result and guide you grow your business.

 

Does experimenting YouTube Ads affect the budget?

Many advertisers doubt on conducting experiments with their YouTube ads. This bothers advertisers as experimenting can cost more or less depending upon the format, target audience and other factors.

Therefore, allocated money sometimes may not be enough than previous ads.

Conducting experiments prove to be very fruitful as this process will tell you will ad suits your business.

It is always beneficial to give a tweak to your ad to improve your success rate. The ads with the same format might not work in long-term but giving a slight touch of improvement prove to be effective in the long-term.

You can experiment with different ad format, call to action, images and other elements to attract and engage the viewers. You can also keep your eyes on analytical data to check which ad gives a good result.

Continuously working with the ads you will know where to improve and how to improve that generate the best result. Then you may choose the one type of ad that works best for you.

 

But, how to figure out which ad type is working best?

There are many metrics you can measure the success of your ads, but it also depends on your business goal. The following metrics can also be used to judge the ad type:

  • Views: The number of viewers who have watched your video ad. This will help to figure out whether you are reaching your audience or not.
  • Clicks: The number of times viewers have clicked your ads. This help in determining ad engagement.
  • Video viewership: This determines who has completed 25%, 50%, 75% and 100% on of the ads. This gives an insight into where viewers are losing interest so that there is a chance of improvement.

 

Final Thoughts

The allocation of some marketing budget in YouTube ads is something that you, as a business, should not hesitate. Giving your business a better platform to expose is what you need to focus on.

If you are a startup, YouTube is one of the cheapest and effective digital platforms that provide you with an excellent opportunity to grab some market share.

Does this article convince you to start your YouTube ad? Want help to launch your ad on YouTube? Contact Addicted 2 PPC; we can help you with that.