In this post, you're going to discover the truth behind what it costs to advertise on YouTube. Most importantly, how you can dramatically reduce your costs and the factors that go into your YouTube ads cost whether you're trying to grow your channel or drive more traffic and sales to your business time stamp.
Let's just go ahead jump right in answer the question, when you're just getting started with YouTube ads, how much can you expect to pay per view? An answer is very simple five to thirty cents.
If you're paying more than thirty cents per view on a campaign that most likely means, there's something seriously wrong with your ad or you're targeting that needs to be fixed immediately.
Now, there's another way, you could pay for YouTube ads, and this is something called a CPM or Cost per Mille or thousand impressions. That's something that we aren't going to talk about because it's not something you want to use as a beginner, and that's it.
You could expect to pay. Let's go ahead and go through how we can reduce that starting point of 30 cents down to closer to the ten to the five-cent range, what you expect to pay based upon a daily budget and a monthly budget.
The less you're paying per view, the more views you're ultimately going to get, and that's something very important to remember. You can get one cent views, and this doesn't necessarily mean you want the one-cent views right.
We also want to make sure that we're targeting the right people, so there might be times where it makes more sense to pay 20 or 30 cents because you're getting the right person. If you spend at least 5 or 10 cents, you're just getting a bunch of random people who aren't ever going to subscribe or purchase your product or service.
When it comes to the cost structure, there are two places where you can control your costs, and then we'll go through the different types of ads and also the different types of targeting strategies to lower your cost per view. When it comes to your costs, you can set your budget at the campaign level.
This is where you're going to say how much you're going to spend per day or how much you're going to spend over a lifetime. I don't recommend doing lifetime style stuff because you have to recreate the campaign if it was successful. Always do a daily budget; this can be anywhere from a dollar up to a thousand or ten thousand dollars a day.
Of course, you're not going to start at ten grand, probably around the dollar to five-dollar range. When you're just getting started and then at the ad group level, this is where you're going to set your cost per view. This is where you're going to tell Google I don't want to pay more than this for each view.
When you're just getting started, 10 to 15 cents is a good range to start with. When you're setting your initial cost per view, hopefully, it's going to be a lot lower. When you use some of the strategies you are about to learn now, the very first factor that comes into play, when you're looking at, how much your YouTube ads are going to cost comes down to the type of ads.
Type Of Ads:
There are lots of types of ads, but we're going to focus on the two that are going to make the most sense for growing your channel or driving traffic and sales to your business. The very first type is in-stream and in-stream ads are the ones that pop up in front of the videos that you're watching across YouTube.
They're typically the annoying ones, not as annoying as those bumper ads, though because you can't skip those at all, we'll get to bumper ads in a second.
With in-stream ads, what's very important to note, is you only pay after someone watches at least 30 seconds and as long as your video ad is more than 30 seconds. If you're going to do an in-stream ad, always have your video longer than 30 seconds. What people can do is the first 5 seconds of the ad, they can skip, and we'll get into a strategy, you can use later on to use this 5 seconds dramatically to reduce your costs.
If they leave within the first 30 seconds, you wind up not paying for that view. You only pay for views after the 30-second mark, which is great, but your views are going to cost a lot more when compared to Discovery ads.
Discovery ads are those ads that show up in search and suggested on mobile and desktop YouTube. Most importantly, you pay when someone clicks on it, and the video will load up just like a normal YouTube video. In in-stream ads, you're going to have a little banner at the bottom and let people directly click a link off from YouTube to your website.
Discovery ads are just going to show up as a normal video, and you're not going to have that banner on the side or that little banner at the bottom of the video. For people to click off, it's very important to remember if you are trying to drive traffic off of YouTube, It makes more sense to pay a higher cost per view because you're going to get explicit places to put links. In contrast, if you're doing discovery ads, they're going to cost a lot less than in-stream.
It's going to be harder to drive traffic off of YouTube because you're going to be pointing down here. The description is a lot harder to get people to do, especially if they're on mobile. For in-stream, you're probably going to be in the 20 to 30 cent range whereas discovery, and you're probably going to be in the 5 to 10 cent range.
There are other types of ads that you can run, and you're going to wind up being more expensive. You can have an outro ad and a bumper ad, so an outro ad what that is, it's a video that shows up at the end of a normal YouTube video. It is kind of like an in-stream ad except you pay pretty much right as someone starts watching it.
Then, bumper ads are those annoying six-second ads that big brands use, and I do not recommend anyone use these because they're significantly more expensive, and you're just paying every time someone watches it for 6 seconds. It isn't enough time to get anyone to take any action or get engaged enough to go look up your channel.
Those are the other types of ads you can play with, but I highly recommend just sticking with the in-stream and Discovery ads because they're going to be the least cost for the best action and resultant benefit. The next thing that impacts the cost per view is your targeting. Whether you're doing in-stream, bumper outro, discovery, your targeting options are pretty much going to be the same and inside of YouTube.
There are two different types of targeting options, and you have targeted by audience and targeting by content. Targeting by content, this is key words and topics are typically going to cost less than targeting by the audience, which is going to be affinity in the market. The key differences between the two are one is focused on the type of content that your ads are showing bond versus the other is focused on the person that you're targeting.
Targeting the person versus the content is going to be a higher cost. Still, you're typically going to get a better quality view except for targeting channels because Google and YouTube are switching up how to channel targeting works. So, channel targeting is starting to be one of the best ways to target.
Let's go ahead, just break down which one, you should be looking at based upon what you're trying to do now when it comes to driving leads and sales, you want to target in markets remarketing similar audiences and channels. These are typically going to be the most expensive when it comes to running in-stream ads. However, it's going to get you the best quality view because if you're trying to drive traffic off of YouTube quality.
How much you are paying per view and when it comes to subscribers and views, affinity channels, and remarketing or similar audiences is where you want to go now. Something very important with all of these targeting options, how do you know which one's going to cost more or less. We've gone through the generalities of this, but in terms of concrete, the smaller the audience you are targeting, the higher the cost is going to be.
In general, when you're trying to be specific, I just want this person Google's going to go. We'll give you just this person, but we're going to charge you a lot more money if you just want this person versus if you want all of these people right. So, the more narrow you're targeting, the higher your ad costs are going to be.
When you're just getting started with YouTube ads, you don't want to do remarketing, you don't want to do similar audiences, you want to do a broad market of affinity in the market or just targeting really large YouTube channels. Because your costs are going to be low and testing your ad copies is more important at that stage than trying to zero in on the exact channel, exact affinity, or in-market audience.
That's going to perform well for you, and your costs are significantly lower. You're going to get a lot more good data and be able to rebuild or build your remarketing audience that's ultimately going to be one of your best traffic sources. To have a lot of people on that remarketing list, it makes sense to pay for it.
YouTube Ads Cost:
That's the second factor that goes into how high or lows your ad costs are going to be now. The third biggest factor to your YouTube ads cost. It is going to come down to the quality of your ad, something that Google ads or YouTube ads don't have is a quality score, which is Google's way of getting tongue-tied.
This is Google's way of telling you whether or not your ad sucks pretty much. YouTube doesn't give you that specific metric, but they do give you another metric called display rank lost. What this does is, it tells you of all the times you could have shown up or how many times did your ad not show up because Google doesn't think your ad is relevant.
What you want is, this metric to be very low, so this is a column that you can set up inside of YouTube ads. It's super simple, you just click on columns, and you can select it under competitive metrics. You want to look for those campaigns that have a lower display rank loss percentage. That's Google saying, “Hey, it's great that you're targeting these people because we find this ad very relevant so that percentage is going to be less.”
If you're looking at the inverse where the display rank lost is very high then all of a sudden, it's Google saying, “Hey, it's great you want to target those people, but we don't think your ad is all that great and we're gonna charge you more because you're asking us to serve a video to a bunch of people who don't want to watch your video.”
So, in Google's eyes, it doesn't matter if you want that audience to watch the video. If Google doesn't think your videos are relevant, that percentage is going to go up, which means you have to pay more to target those people. You want to keep an eye on this column because this column is going to be an early warning sign of whether or not you're paying too much to target an audience with a relevant video.
Now, we'll get into a pro tip at the end where you're going to see another column. You can use to cut your cost per view, but we'll get to that at the end of the video now that does it for the three main factors of what goes into, how much you're going to pay for YouTube ads, and whether or not you're going to be closer to the 5 cent range.
The YouTube Ads Strategy:
A quick summary is, an in-stream ad is going to be more expensive than discovery, but in-stream is great if you're driving traffic off of YouTube. Remember, quality of views matters just as not as much, if not more than what you're paying. Then, the second factor goes into the audience that you're targeting; the smaller the audience, the more you're going to pay.
The third factor is whether or not your video ad is relevant to the audience that you're targeting. Displayable ranked lost going to be Google's way of telling you whether or not they think your ad is great or it kind of stinks now let's go ahead and go into a strategy. We can use with in-stream and discovery ads to help reduce our costs. Now, remember, in in-stream ads, you only pay the first 30 seconds, which means in the first 30 seconds, what you want to do is eliminate everyone else who isn't a good fit for whatever you're trying to sell.
So, in the first five seconds, you want just to get your message or your brand out there as quickly as possible because that's great. It's free time right everyone's going to have to watch that five seconds. If you care at all about brand awareness or you're trying to grow your channel. Let get the word out about who you are? That first five-second is going to be critical because nobody can skip it, and you're at least going to get five seconds free.
Then, in the next 25 seconds, you want to eliminate everyone else who isn't a good fit for your channel, your business, your product, or your service. You're not paying a bunch of money for views of people who ultimately don't care about your channel or don't care about your business. Now, the next strategy that we have is making sure that your end screen gives people plenty of time to click something, a lot of new advertisers make the mistake of not giving people time to click at the end of the video.
This is going to apply whether you're doing discovery or in-stream, and pretty much your end screen needs to last at least 20 to 30 seconds because at this, you've already paid for the view. So, it doesn't matter how long the end screen is. If you're doing a discovery ad, the end discovery and in-stream, you want some sort of picture or graphic and then something that tells people what to do next. If you're doing an in-stream ad, you're going to have arrows for mobile and desktop.
So, they can click on those little banners if you're doing a discovery ad, you just want to the banner at the bottom, saying that click the link in the description or click Subscribe below. If you're doing a content strategy, now a pro tip, we wrap things up that are going to be your budget lost column. Similar to your ranked lost column, this is Google's way of telling you how your ad is performing except this time, it's looking at your overall budget.
Remember, you're setting your budget at the campaign level, you're saying five dollars a day, ten-twenty dollars a day or whatever it may be. Google is going to tell you of all the times, and you could have shown up how many times you did not show up because of your budget or because of your cost per view bid.
Sometimes, you'll find that you just don't show up at all because your bid is too low, this is why I recommend starting at the ten to fifteen cent range not three to the five-cent range. Now, if your budget lost is less than thirty per cent, then you can try lowering your cost per views. You might be able to get away with paying less per view, so, you might be at the top spot, top two or three spots in terms of bidding because this is an auction after all.
You're making a bid to have that spot to run your ad, so you might be able to get the same amount of traffic by just lowering your bid. I can improve the efficiency of my budget by paying less per view and just paying less to get a similar result. Of course, this only works if your rank is very low. If this is low and your rank is high, then this isn't going to work.