What is the real cost for YouTube Ads? LeadStream SEM experts

What is the real cost for YouTube Ads?

The Basics

YouTube Ad types

YouTube Bumper Ads

YouTube Non-skippable Ads

YouTube Skippable Ads

Is it Worth It?

An excellent platform for Advertising

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Coming in at number two only behind Google itself, YouTube is a clever mix of everything we love about digital marketing: it is both a social media and a search engine.

YouTube is a highly popular platform, used by millions of people worldwide every single day.

This level of use and traffic means YouTube is one of the most powerful channels for marketing and advertising with video content.

With an estimated two billion users logging onto the platform every single month, the platform has incredible volume and can be a very powerful tool for helping brands attract new customer bases and continue to stay connected to existing customers as well.

This is all well and good for traffic statistics, but is it worth the cost, and just what do YouTube ads cost?

YouTube Ads: The Basics

The basic premise of using videos as a form of advertisement and marketing is fairly new, but it has already changed the way businesses big and small alike target customers.

“Beyond targeting viewers, YouTube allows you to target ads on specific channels and videos. …

In other words, it places your ad where it will most likely attract an audience with high conversion potential. This allows you to target high-intent users at various stages of the buying process.” (WMGAgency)

Taking the guesswork out of where to place ads and what videos and streams to target is often enough to make the cost of YouTube ads an investment that many businesses are very happy to make.

Youtube ads cost

YouTube Ad Types: Which One to Choose and Why?

No one can deny that YouTube as a platform is one of the most popular among social media outlets today.

And just as diverse as the types of videos you will find there, the types of ads YouTube offers is also varied, which only adds to the appeal of evaluating YouTube ads cost and investment.

With multiple ad types to choose from, businesses can tailor their ad types and locations to better suit their budgeting needs, something no other platform does quite as well.

“Given how vital YouTube has become to a successful digital strategy, it’s surprising to remember that advertising on the platform started only a decade ago. YouTube is one of the best options for creating a cost-effective advertising campaign: Average CPV: $0.026 -Average view rate: 31.9% – Average view CTR: 0.514%.” (BigCommerce).

With this information in mind, let’s look at the three most popular ad types that tend to get the best views, clicks, and return on investment on the platform.

youtube ads image

YouTube Bumper Ads

YouTube’s bumper ad is by far the most commonly seen type of advertisement on the platform.

With this format, you get a short unskippable video ad that plays before a YouTube video.

Most are 5-10 seconds in length though some that appear on longer videos can be a bit longer as well.

Due to their short length, bumper ads are commonly used to push brand awareness and to get names, logos, slogans, and CTAs in front of as many potential customers as possible.

You want to try Facebook Messenger Ads ?

YouTube Non-skippable in-stream Ads

Because users are basically forced to sit and watch a full ad in order to continue viewing the current video they are watching, non-skippable ads are a powerful tool. With an essentially captive audience, it is easier to give longer messages to customers through the ads.

Additionally, these ads typically have higher CPMs than other ad formats on YouTube.

This means non-skippable ads are generally used by advertisers who are willing to spend more on advertisements for brand awareness.

YouTube Skippable Ads

Skippable video ads are another popular variety of advertisements that can be found on YouTube.

These longer-form ads are designed so they allow viewers to skip ads after 5 seconds if they want to do so.

They can appear anywhere- before, during, or after – the video that is being watched.

When advertisers use this format, their skippable ad may appear back-to-back with a bumper ad or other advertisement types that can appear during the video playback.

Are YouTube Ads Worth It?

People love YouTube, but the question business owners and advertising managers have to consider is whether or not it is a platform worth advertising on.

The answer is yes… in some cases. “As a marketer, you are probably assuming that video advertising is expensive, but YouTube makes video advertising pretty affordable.

Remember, with YouTube advertising, you pay per video view whether it’s for a full video or 30 seconds.

A typical video ad view costs between $.106 and $.30 per view, depending on your video quality, targeting, and marketing goals.” (Disruptive Advertisement).

YouTube has joined the ranks of Google and has secured itself as the leading video search engine. And it is popular among small businesses and even those who are less tech-savvy.

In fact, we spend a billion hours a day on YouTube, more than Netflix and Facebook video combined!

So obviously, this is a platform that is worth looking into and giving serious consideration to as you plan your advertisement plan for the coming year.

YouTube is an excellent platform for Advertising

Video advertising on YouTube is unlike traditional advertisement in print media and is even vastly different from what is seen on other digital platforms like Google or Facebook Ads.

When looking at the specifics of YouTube ads vs Facebook ads there is a lot that has to be unpacked and considered.

The key difference is in the way a view is counted and how you are charged for the ads running on videos: You only pay for a view if the user passes the 30-second mark or watches the entire video.

When the ad starts and the used skips or clicks away within the first 20 seconds or so, you are not charged full price for that particular ad airing.

YouTube ads have also been shown in study after study to generate more traffic than Facebook ads that were placed at the same price point range.

The average costs of a trial run of Facebook ads among new users over the last few years were around $60, while the average YouTube ad cost for one of their similar trial run of a campaign tended to average closer to $25, which is way more effective and affordable!

LeadStream Agency Partnership For Your YouTube Ads Campaign

If you have been putting off marketing and advertising on YouTube because you have been pondering the question of how much do YouTube video ads cost and are they worth it- hopefully, this has cleared things up for you.

Unpacking the ins and outs of figuring out YouTube ads cost rates and what is a good range for your brand takes an expert approach and insight.

To take full advantage of this platform and to get the most out of your advertising budget, contact LeadStream Agency today and get started with YouTube ads today!

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