How Much do YouTube Ads Cost? [Updated 2022 Guide] (2022)

Google owns YouTube. Therefore you advertise on YouTube using the Google AdWords network. As with any other type of Google AdWords campaign, the price of YouTube ads involves you bidding for ad placement. Therefore it is impossible to say how much YouTube ads cost definitively.

We have previously looked at YouTube ads from the YouTubers’ point of view in How To Make Money On YouTube. This post focuses on YouTube from an advertiser’s point of view.

  • YouTube ads have an average cost-per-view of $0.010 – $0.030, and the views that you generate will count towards your overall YouTube viewer count.
  • Theaverage cost of reaching 100,000 viewers is around $2,000.

Summary: YouTube Ad formats, Targeting and Bidding

  • Why Would You Advertise on YouTube?
  • Ad Formats to Consider
  • Display Ads
  • Overlay Ads
  • Skippable Video Ads
  • Bumper Ads
  • Targeting Your Video Ads
  • Creating Your Video Ad
  • Bidding
  • Optimization of Your YouTube Campaigns

Why Would You Advertise on YouTube?

YouTube has a huge following – indeed it enjoys more than 1.5 million logged-in monthly users. They watch YouTube on mobile devices for more than one hour a day on average. With the current popularity of Smart T.V.s, there has also been a rapid rise in watching YouTube on television sets.

It is also hard to ignore the fact that the YouTube search engine is second only to Google when it comes to search use.

With the power of Google AdWords behind it, it should be no surprise that YouTube is now a favorite medium for advertisers worldwide.

The only difficulty from a budgeting perspective is that there is no explicit price rate for YouTube ads cost. However, this is not any different from many other types of online advertising. The general rule online seems to be that you bid for advertising space and the highest bidder is typically accepted.

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Ad Formats to Consider

YouTube offers a variety of ad formats. These include:

  • Display ads – these appear to the right of the feature video, above the video suggestions list – on the desktop platform only.
  • Overlay ads – these are semi-transparent overlay ads that appear on the lower 20% of your video - on the desktop platform only. These can be either image or text ads
  • Skippable video ads – the most common type of YouTube ad. These are the ads you see before during or after a video which a viewer can skip after 5 seconds
  • Non-skippable video ads – these are video ads that viewers must watch before they can view the main video. There is an extended version, with 30-second ads, but YouTube is about to phase these out due to their unpopularity. Non-skippable videos are more typically 15-20 seconds in length.
  • Bumper ads – these are non-skippable videos up to 6 seconds which a viewer must watch before seeing the main video
  • Sponsored Cards – these provide content relevant to the video, for example, products featured in the main video

The video ads are sometimes called TrueView video ads. YouTube has simplified their ad naming recently. They have split their ad types into TrueView in-stream ads and TrueView video discovery ads.

How Much do YouTube Ads Cost? [Updated 2022 Guide] (1)

The in-stream ads are those that appear as part of videos, i.e., the skippable and non-skippable video ads, and bumper ads. The video discovery ads, as the name suggests, are those ads that you use to help people discover your videos, mainly display and overlay ads.

In simple terms, you pay for a TrueView in-stream ad when somebody watches at least 30 seconds of your ad (unless it is shorter). You pay for a TrueView video discovery ad when somebody clicks on your ad thumbnail.

(Video) YouTube Advertising Costs Explained

By far the most popular ad is the Skippable video ad. While non-skippable ads may sound lucrative to advertisers, they are unpopular with users.

Display Ads

Display ads can be less popular with advertisers because they do not encroach on the videos people watch. However, they can still generate positive results for your advertising campaign. As I referred to above, YouTube contains the world’s second largest search engine. This means these ads can act as an alternative to advertising on Google if you operate in a competitive niche.

If you promote a video here, you could end up paying a rate as low as 3 cents per view.

How Much do YouTube Ads Cost? [Updated 2022 Guide] (2)

If you can determine the phrases in your niche that people regularly search for, you could create a video to match that phrase, promoting that video in a display ad. By doing that, your ads will appear as relevant to the searchers as other feature videos on YouTube.

The idea is to create videos that meet the needs of the searchers and then promote them with display ads.

Overlay Ads

Overlay ads are a great way to drive traffic to your own YouTube channel or website. For this to work on your YouTube channel, you first need to populate it with engaging, entertaining videos. You would also want to create a compelling welcome video to encourage people to stay the moment they clicked through to your channel.

Naturally, you can create overlay image ads that appear on anybody’s videos. You can gain added value, however, if they click through to your channel.

Skippable Video Ads

You only pay for those skippable videos that viewers watch for 30 seconds or more (unless your ad is shorter than that). So, you do not have to worry about paying for all those people who skip through your video as soon as they can.

How Much do YouTube Ads Cost? [Updated 2022 Guide] (3)

This keeps costs down, but of course, you will not gain any benefit unless some people watch your ad, click through and then buy your product.

This makes accurate targeting very important for your ads.

Bumper Ads

Businesses use bumper ads when they want to deliver a short, memorable message to potential customers. As they are six seconds or shorter they need to be to the point.

You pay for bumper ads by impressions. They are charged by CPM – cost per thousand impressions. Hence you pay for a bumper ad each time your ad receives 1,000 impressions.

Targeting Your Video Ads

You will find a Targets tab for each of your video campaigns. It works similarly to how you would target different types of people when you buy AdWords in Google Search.

(Video) The Real Cost Of Running A YouTube Ads [2022]

You use the Targets tab to narrow down the types of people to whom YouTube will serve your video ad.

To keep your YouTube ads cost down, but at the same time ensure that you receive enough clicks to make your campaign worthwhile, you will need to target only the correct people to see your ad.

The more targeting options you choose, the tighter your target will be. Two to three targeting options should be sufficient for most target groups.

You want to think in terms of keywords. What terms will your target audience likely use when they search for YouTube videos?

The more you monitor this, the less unnecessary expense you will have from people watching your videos but not being a likely person to go any further through the funnel.

At a high-level, if you sell a product aimed at middle-aged men, you will want to avoid targeting video search terms most commonly used by teenage girls. If you are targeting elderly women, you would have no interest in your ad appearing on any of PewDiePie’s videos, for instance.

You will want to include both positive keywords to focus on, and negative keywords to avoid.

You also should look at other targeting demographics. If you only sell your product in one country, you need to avoid advertising to the rest of the world. Similarly, you may want to limit your ad to countries where the majority of people speak English.

Your videos may be entertaining, but you do not want people watching them through who are never likely to buy your products.

Creating Your Video Ad

Businesses often find that video creation can comprise the highest proportion of YouTube video cost. This does, of course, depend on the level of sophistication and professionalism you are aiming for with your video ad.

If your video is low quality, then people will skip it at the 5-second point. A low-quality video does not reflect well on your brand, either.

It depends on the expectations of your target audience. Some firms can get away with a $5,000 home-made video. Others will look shabby unless they spend $100,000 and employ professional actors, crew and production values.

The more creative you can be with your video ad, the less reason there is for the viewer to rush to the Skip Ad button.

Remember that YouTube is not the same as broadcast t.v. A live tv viewer does not have a SkipAd button. While you may think you can save money by reusing your television ads, you are likely also to be foregoing income, with people choosing to bypass your ad.

The only exception is when you manage to create a cult ad. A few firms can upload their ads to YouTube as video creations, rather than paid advertisements. For instance, Air New Zealand has gained a reputation for their quirky safety videos. As such they do not to pay to advertise on YouTube. They have a thriving channel, where people search for their latest safety videos.

(Video) Google Ads Costs and Billing 2022 - How Much Google Ads Costs and How They Charge You

Of course, many of these videos are high-budget productions, including videos made by international film producer, Sir Peter Jackson, director, Taika Waititi, and some of the Hobbit and Lord of the Rings cast.

If you only have a small budget for video production (and don’t have famous friends to help you), you need to try a different approach to video production. You will probably have to learn to be comfortable in front of the camera.

YouTube does have tools to help you with your video production. They even have a scheme called Director Onsite to help businesses make professional videos. This project is currently under review and will be modified in early 2018.

Bidding

The key to the level of your YouTube ads costs is the need to bid on ad placement. You are not given any set price for advertising on YouTube

You set yourself a daily budget of what you are prepared to pay for your YouTube advertising. Most businesses allow at least $10 per day for their YouTube advertising campaigns, and then raise this once they have experimented with various options. You only pay when somebody engages with your ad in some way. Perhaps they watch your skippable ad for 30 seconds, or they click on a Call to Action on a display ad.

Make sure that you do your targeting before you set your bidding options. The bidding suggestions that YouTube makes change as you alter your targeting.

In most cases, you bid by CPV – cost per view. This means that you are willing to pay up to your bid figure for each view (of 30 seconds or longer).

You will also set a maximum figure you are willing to pay per day. This ensures that you do not receive any nasty surprises should you find that more people watch your ads than you anticipated.

You will be asked to bid a Max Cost Per View. YouTube will give you a typical range of bids – these will, of course, depend on how much you have limited your audience in your targeting.

If you click on “Customize Bids Per Format,” you can split your bids separately for “In-Display” or “In-stream”. If you are more interested in “In-stream” advertising, bid more for this statistics than you do for “In-Display.”

YouTube gives you a projection of your predicted views/day for in-search, in-display, and in-stream. If these numbers do not match your intentions, you need to go back to your bids and adjust accordingly.

It will give you a predicted average CPV.

Optimization of Your YouTube Campaigns

Ultimately, your concern should not so much be about how much your YouTube Ads cost, but about what level of return you can earn from your YouTube advertising cost. This means that you need to keep an eye on your campaigns and then adapt them at regular intervals, to optimize their performance.

Neil Patel covers this in detail in How to Optimize a YouTube Ad Campaign. He shows how Gatorade managed to earn $13.50 for every $1 they spent on their YouTube ads.

(Video) YouTube Ad Costs: How Much Do YouTube Ads Cost?

How Much do YouTube Ads Cost? [Updated 2022 Guide] (4)

The key to optimizing your YouTube campaign is reviewing your campaign statistics and understanding what they are telling you. The most important stats are the View Rate of your ads and the Click-through Rate. These stats show you whether people find your ads compelling and whether they are working as a campaign.

The most common problem is that your videos are not compelling enough. Although some firms give up at this point and write YouTube off as a marketing option, a better choice is to revamp your videos to make more compelling content.

Alternatively, you could select suitable influencers to work with, allowing them to create compelling content that highlights your product.

Sometimes your problem may be lack of exposure. This may be because opposition companies have outbid you for the best advertising positions. You could experiment by bidding higher, and then observing how your ads perform with a higher exposure.

You will find that you will often obtain the best overall results by being willing to increase the amount you are prepared to pay for your YouTube advertising. Skimping on costs may harm your overall ROI and bottom line.

How Much do YouTube Ads Cost? [Updated 2022 Guide] (5)

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How Much do YouTube Ads Cost? [Updated 2022 Guide] (6)

FAQs

How much do YouTube ads cost 2022? ›

YouTube ads have an average cost-per-view of $0.010 – $0.030, and the views that you generate will count towards your overall YouTube viewer count. The average cost of reaching 100,000 viewers is around $2,000.

How much does it cost for ads on YouTube? ›

YouTube ads cost on average anywhere between $0.03-$0.30 USD per view. That price changes depending on the following factors: Bidding.

How much does a 30 second YouTube ad cost? ›

The average YouTube ad cost per view (CPV) on YouTube is $0.010–$0.030, depending on the ad format, placement, and industry. If you have a video with 1000 views, you'll pay around $10-$30 for those views. It can cost around $2,000 to reach 100,000 viewers on average.

How much does a 10 second YouTube ad cost? ›

On average, though, YouTube advertising costs are $0.10 to $0.30 per view or action, with an average daily budget of $10. That means every time someone views your ad or engages with your ad, like by clicking on a call-to-action, you pay around $0.10 to $0.30.

How much does 1000 impressions cost on YouTube? ›

YouTube Advertising costs can vary, but you can expect to spend around $0.10 per view and $10.00 per 1,000 impressions. It's very difficult to forecast an average cost per conversion because it will vary for every industry. As far as how much you spend, an advertiser has control over their budget.

How can I add ads to my YouTube 2022? ›

Select a video. In the left menu, select “Monetization.” Choose the type of ads that you want to run. And click “Save.” And you are done.

Is buying a YouTube ad worth it? ›

So, are YouTube ads really worth it? Yes, YouTube ads are really worth it ‒ if you do things the right way. There are several components that go into a successful YouTube ad campaign. If you can get these components right, the sky's the limit as far as revenue generation is concerned.

How much do ads cost? ›

The average cost per click for most verticals is $2-$4, while more competitive industries like lawyers, insurance, and loans can cost $50 per click!
...
ONLINE ADVERTISING IS COSTS IN 2021.
PlatformAverage CPCAverage CPM
Google Search Ads$2.32$38.40
Google Display Ads$0.67$3.12
Facebook Ads$1.35$8.60
4 more rows
Mar 26, 2021

Should I pay YouTube ads? ›

Benefits of advertising on YouTube.

You can target your audience to an extreme degree. Videos deliver a greater feeling of being connected, encouraging future brand engagement. People are more likely to comment on videos. Video has the best conversion rate.

How much money do you get from 1 million YouTube views? ›

Using Forbes's estimated pay rate of $5 per 1,000 views, a YouTube video with 1,000,000 views can make upward of $5,000, which makes being a modern-day influencer a pretty lucrative job!

How are skippable ads charged? ›

TrueView is available on a Cost-per-View (CPV) basis, but Authorized Buyers skippable video ads are only available on a Cost-per-Impression (CPM) basis. Buyers may charge their customers on a CPV basis, but they will pay for the underlying skippable impressions on a CPM basis.

How do you buy YouTube ads? ›

  1. Step 1: Upload Your Video Advertisement to YouTube.
  2. Step 2: Create a New Campaign in Google Ads.
  3. Step 3: Configure Your Campaign.
  4. Step 4: Select the People You Want to Reach.
  5. Step 5: Select Where You Want Your Ads to Show.
  6. Step 6: Select Your Marketing Video.
  7. Step 7: Configure Your YouTube Ads Video Ad.
Dec 17, 2020

How much money do you get for 1 view? ›

The actual rates an advertiser pays varies, usually between $0.10 to $0.30 per view, but averages out at $0.18 per view. On Average, the YouTube channel can receive $18 per 1,000 ad views. This equates to $3 - $5 per 1000 video views.

How much does YouTube without ads cost? ›

YouTube Premium offers convenient perks, such as an ad-free experience and offline viewing on mobile devices starting at $11.99 per month.

Can you pay YouTube to promote your videos? ›

You can always use the option to pay to promote YouTube videos if you have enough money to do so. YouTube has numerous ad types to select from: Display ads: These advertisements appear in the right-hand sidebar of videos and are only available on desktop.

What is average CPM on YouTube? ›

According to a post by Hubspot, 0.38 CPM is average for the U.S. While 4.38 CPM is the average in Spain. The country with the highest average at the time was Mauritius at 7.05 CPM. Other factors that affect your CPM include: The length of your video.

How long are Unskippable ads? ›

Non-skippable ads are short in-stream video ads that play before, during, or after another video. Viewers don't have the option to skip your ad. With videos between 6 and 15 seconds, non-skippable ads allow you to reach viewers with your entire message.

Do YouTube ads actually work? ›

Google has just released data from a meta-analysis of 56 case studies from brands within six different industries, across eight countries over the last 3 years and supplemented that data with their own research to conclude that yes, YouTube ads are effective and are more effective than TV ads.

What happens when you get 1000 subscribers on YouTube? ›

The YouTube Partner Program is a must-do for influencers looking to take their YouTube channel to the next level. With 1,000 or more subscribers, you are now eligible if you meet other qualifying guidelines, such as: Over 4,000 public watch hours in 12 months.

Can I monetize my YouTube channel without 1000 subscribers? ›

With the rise of online coaches and consulting programs, creating a high-ticket coaching program is a great way to monetize your channel with less than 1,000 subscribers. Most high-ticket programs often offer a course combined with one-on-one or group coaching.

Why can't I put ads on my YouTube videos? ›

Try these troubleshooting steps: If you've turned on ad-blocking software or add-ons and extensions on your browser, you might not see ads on your video. Try turning off the software or extension. If you've turned off ads for your channel within your Account Settings, ads will not serve on any of your videos.

Can YouTube tell if you buy subscribers? ›

If YouTube notices that you've bought subscribers and views, it will take all of them away (YouTube does this quite regularly). In the worst case, this might lead to your whole channel being shut down.

Can YouTube ads increase subscribers? ›

A successful Google Ads campaign to drive more subscribers to your YouTube channel is possible. You can easily achieve your goals as efficiently as possible while adhering to your daily budget. So, don't be afraid to make tweaks to improve performance over time and review how you're doing.

Should I link my YouTube channel to Google Ads? ›

Linking your Google Ads account to your YouTube channel offers advertisers a few major benefits. The main benefit is it allows you to run ads based on how people engage with your YouTube videos, and target people who have watched your videos or visited your channel.

What was the price of a 30 second advertisement 2022? ›

In 2022, advertisers had to pay an average of 6.5 million U.S. dollars to air a 30-second long commercial during the Super Bowl LVI broadcast.

How much does it cost to make a 1 minute commercial? ›

The average cost of TV commercial production ranges from about $1,000 per minute to upwards of $100,000. Most commercials cost between $1,500 and $20,000. Keep this in mind as you plan your next 30 second television spot and then call Beverly Boy Productions to learn more about advertising on tv.

Are Google ads worth it? ›

Google Ads can be worth it for small businesses. There are a ton of benefits advertising on Google can offer including the ability to reach targeted and motivated audiences, a pay-for-performance pricing model, and an easy-to-track ROI.

Why does YouTube have so many ads now? ›

The reason that YouTube has advertisements in the first place is that it is a free application to use, and they need a way to pay their bills, their staff members, and the YouTube partners that make the platform what it is.

How long should YouTube ads be? ›

15 or 20 seconds in length, depending on regional standards. Short, non-skippable video ads of up to 6 seconds that must be watched before a video can be viewed. Bumper ads are turned on when skippable or non-skippable ads are turned on. Plays in video player, up to 6 seconds long.

How do I get YouTube ads without monetization? ›

Here's what we recommend for those who don't meet YouTube's new monetization criteria:
  1. 1) Join affiliate programs. This means partnering with a company by linking to its products from your channel. ...
  2. 2) Partner with brands. ...
  3. 3) Sell your products.

How much is 100k views on YouTube worth? ›

For example, if your RPM is $5 and you get 100,000 views per month, you can earn $500 per month. So, while you'll need to have a minimum number of subscribers to get into YouTube's program so that you can start earning money, it's actually the number of views that will impact your earning potential.

How much is 200 million YouTube views worth? ›

How much YouTube paid me for 200 MILLION views in 2021

How many subscribers do you need on YouTube to make money? ›

To start earning money directly from YouTube, creators must have at least 1,000 subscribers and 4,000 watch hours in the past year. Once they reach that threshold, they can apply for YouTube's Partner Program, which allows creators to start monetizing their channels through ads, subscriptions, and channel memberships.

Which pays more skippable or non skippable ads? ›

As to my limited knowledge, each time you view an ad, it is one “impression” that pays the youtuber. Long, non skippable ads are worth more money, and the other types of advertisements are worth less. You don't have to click, or buy, the item that's in the ad, just watch the ad and it counts as an ad impression.

How do I skip Unskippable ads? ›

How To Skip Youtube Ads. There is no fix to this if YouTube has created an unskippable ad. You can only wait for the ad to pass before you can begin watching your video. Of course, you can also wait and see if you can skip the ad after a few seconds and continue watching your video in no time.

Do skippable ads pay more? ›

YouTubers won't get paid for skipped ads, but some situations may still lead to some AdSense earnings even when an ad is skipped. For starters, some ads, like non-skippable bumper ads, are only six seconds long, so the viewer doesn't even have a chance to skip the ad.

Is Google ads the same as YouTube ads? ›

The main difference between YouTube ads and traditional Google Search ads is the cost. It only costs a couple of cents to get your video seen while you can spend upwards of $50 for a single click from a traditional Google PPC campaign.

How long does it take for YouTube ads to start running? ›

Since Ads reporting is not real-time, it may take up to 24 hours before your campaign shows impression and click statistics.

How much money do you get from 1 million YouTube views? ›

How much is 1 million YouTube views worth? For a video with 1 million views, the average pay falls between $2,000 and $3,000 if you use ads on your videos.

How much do ads cost? ›

The average cost per click for most verticals is $2-$4, while more competitive industries like lawyers, insurance, and loans can cost $50 per click!
...
ONLINE ADVERTISING IS COSTS IN 2021.
PlatformAverage CPCAverage CPM
Google Search Ads$2.32$38.40
Google Display Ads$0.67$3.12
Facebook Ads$1.35$8.60
4 more rows
Mar 26, 2021

How much money do you get for 1 view? ›

The actual rates an advertiser pays varies, usually between $0.10 to $0.30 per view, but averages out at $0.18 per view. On Average, the YouTube channel can receive $18 per 1,000 ad views. This equates to $3 - $5 per 1000 video views.

Do YouTube ads actually work? ›

Google has just released data from a meta-analysis of 56 case studies from brands within six different industries, across eight countries over the last 3 years and supplemented that data with their own research to conclude that yes, YouTube ads are effective and are more effective than TV ads.

How much is 1 billion YouTube views worth? ›

A YouTube video with 1 billion views can make upwards of $5,000. According to a variety of sources, YouTubers can make anywhere from $0.01 to $0.30 per ad view with an average of $0.18 per view. The amount of money that YouTube pays in addition varies based on: The number of views your video receives.

How much is 100k views on YouTube worth? ›

For example, if your RPM is $5 and you get 100,000 views per month, you can earn $500 per month. So, while you'll need to have a minimum number of subscribers to get into YouTube's program so that you can start earning money, it's actually the number of views that will impact your earning potential.

How much is 200 million YouTube views worth? ›

How much YouTube paid me for 200 MILLION views in 2021

What was the price of a 30 second advertisement 2022? ›

In 2022, advertisers had to pay an average of 6.5 million U.S. dollars to air a 30-second long commercial during the Super Bowl LVI broadcast.

How do you buy a YouTube ad? ›

YouTube Ads for Beginners: How to Advertise on YouTube
  1. Step 1: Upload Your Video Advertisement to YouTube.
  2. Step 2: Create a New Campaign in Google Ads.
  3. Step 3: Configure Your Campaign.
  4. Step 4: Select the People You Want to Reach.
  5. Step 5: Select Where You Want Your Ads to Show.
  6. Step 6: Select Your Marketing Video.
Dec 17, 2020

How much does it cost to make a 1 minute commercial? ›

The average cost of TV commercial production ranges from about $1,000 per minute to upwards of $100,000. Most commercials cost between $1,500 and $20,000. Keep this in mind as you plan your next 30 second television spot and then call Beverly Boy Productions to learn more about advertising on tv.

Do YouTubers get paid if you skip the ads? ›

Overlay ads (small ads at the bottom of a video) - you only get paid if a viewer clicks on the ad to expand it. Skippable video ads (ads at the start of a video that a viewer can skip after five seconds) - you get paid if a viewer watches the whole ad (or at least 30 seconds if it's longer).

How do YouTubers get paid without ads? ›

YouTube Premium is a paid membership program that lets fans watch and support their favorite content creators without ads. For creators, not much changes, as they will get paid for content consumed by non-members on YouTube, along with content on YouTube Premium.

How much does TikTok pay per 1000 view? ›

As for the TikTok Creator Fund, you can earn between 2 and 4 cents for every 1,000 views. This means you might expect $20 to $40 after reaching a million views.

Is paying for ads on YouTube worth it? ›

So, are YouTube ads really worth it? Yes, YouTube ads are really worth it ‒ if you do things the right way. There are several components that go into a successful YouTube ad campaign. If you can get these components right, the sky's the limit as far as revenue generation is concerned.

Do longer YouTube ads pay more? ›

Yes. In fact, if you watch only he 5 seconds that you asked about, the channel may not get any money for that ad at all. There are many different types of ads on YouTube. Some need to be clicked.

Do most people skip YouTube ads? ›

1. Most people DO habitually skip YouTube ads. 65% of people do skip online video advertising, according to an extensive study by with 11,000 U.S. consumers by Magna, IPG's research arm (1).

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