Unlocking YouTube Advertising
How much does it cost?
Hey there, aspiring advertiser!
If you ever spent time watching YouTube, I’m sure you must have seen a number of video ads playing at the beginning, middle or end of the content you are watching. Ever wondered how you can put up your ad like that and how much it costs? Well, I’m here to give you a guide through it in a beginner-friendly manner.
First things first: advertising on YouTube can be surprisingly cost-effective. Whether you’re envisioning your video ad popping up during specific videos (placement targeting) or targeting an audience that matters to your business no matter what type of content they are watching (audience targeting), YouTube’s got your back! And guess what? Cost per reach (how much you spend to reach one unique person of your target) is very low compared to traditional media such as handing away printed flyers.
YouTube gives you the power of Audience selection.
YouTube offers you a wide range and deep selection of audience profiles. Picture this: your business is selling handmade clothes for babies and kids up to 2 years old. Within YouTube, you have the ability to show your ads to parents of 0-2 years old, who are looking for particular products for babies and kids, or who are in the market to buy baby products like yours. Amazing, right? A friendly note: YouTube is part of the Google family company, so you know you can target the right audience for your website. Stay tuned for the next blog from me and I’ll talk to you more about YouTube targeting.
How much does it cost to advertise on YouTube?
Now, let’s talk money. Unlike ordering off a menu, YouTube advertising isn’t about picking a set price. Instead, we set a daily budget in Google Ads* (inserting a lightbulb), and your campaign works its magic within that limit. You can set how much you want to spend per month and we break that down into how much we give Google Ads per day. This means you have the controlling power over your advertising budget.
*(lightbulb) Google Ads is Google’s online advertising program where you can create online ads to reach people exactly when they’re interested in the products and services that you offer. You can use Google Ads to promote your business, help sell products or services, raise awareness, and increase traffic to your website. An online advertising agency like us, CutTheWeb, can help you manage this program.
And here’s the kicker: once your campaign is up and running, you can tweak your budget on the fly. It’s that flexible! Plus, with all the performance data at your (our) fingertips, we can help you fine-tune your strategy and make sure you get the most out of your marketing investment. The average business sets €5 to €50 daily budget for one YouTube advertising campaign, depending on what your marketing budget allows, how challenging it is to reach your target, and how much of an impact you want your campaign to resonate.
Metrics on YouTube costs
A few terms I would like you to know, if you are new to advertising on YouTube is CPM, CPV and Maximize Conversions. I’ll walk you through this.
CPM is Cost per Mille which means per 1,000 impressions. An impression is counted every time your ad shows up. Cost per Mille can be from €1 to €12. The range is far. Cost can vary based on a number of factors, which we’ll cover in a second.
CPV is Cost per View. A view is when someone chooses to watch your ad up to 30 seconds, if your ad is longer than that, or have interaction with your ad such as clicking on it, whatever comes first. The average Cost per View in the Netherlands can range from €0.012 to €0.30.
You can choose to pay per View (CPV) if you see engagement to your ads important. For those times people choose to skip your ad before the system counts it as a view, you don’t have to pay for it. Consider it a free impression.
You can choose to pay per Impressions (CPM) if your goal is to reach as many people as possible for awareness or when you choose to run your ad in a non-skippable format.
If your goal is to close sales on your website (purchases), get phone calls, contact form submissions or any “actions” that matter to your business, we can set it as “conversion”. It is measurable and your video campaign is set to get as many “conversions” as possible for you. Hence, this is called “Maximize Conversions”. For more advanced advertisers who have sufficient data, you can determine how much you are willing to pay for an action (a conversion) you want from your campaign.
Each campaign is unique (different campaign goals, targeting profiles, locations and so on and so forth), therefore, the breakdown of how much a campaign runs its cost can be different. Your costs depend on factors like your target audience, campaign goals, and location. But fear not, you’re in control.
In a nutshell
YouTube advertising hands you the keys to placement targeting, audience targeting, measurability, and budget control. It’s like having a marketing genie at your service! And the best part? You can create an impact for your business even as a starter.
Don’t have a video to run ads yet? No problem! We can help you with that too. Just reach out, and we’ll get you started on your YouTube adventure.
Hoe klinkt dit voor jou?
Wil je samen met ons jouw bedrijf online verder helpen? En ben je klaar om meer potentiële klanten te bereiken?