How Much Does Advertising On YouTube Cost?

  • Did you know that videos improve customers’ understanding of your product by 74%?
  • Every day, approximately 100 million people watch at least one video online, so videos are an incredibly effective way of promoting your product or service.

So how much does it cost to run an ad on YouTube?

Watch the video below…

YouTube advertisers pay per view for their ad. I’ve received views for as little as 1 cent per view. The average cost-per-view ranges from $0.10 to $0.30. All views you receive count toward your overall YouTube views.

On YouTube there are 2 types of ads:

1. In-stream
This is where your video plays before another video.

2. In-display video ad
This is where your video ad appears on the suggested videos beside the video you are watching. You can target viewers by age, gender or location or by the types of videos they like to watch on YouTube.

What Is Cost Per View or CPV?
With CPV you pay when the viewer chooses to engage or watch your video, whichever comes first. Your bid is called your maximum CPV bid, or “max CPV.” You can set your max CPV bid when you’re setting up your campaign.

How Do You Set A Cost For Your Cost Per View Bid?

To set a CPV bid, you set up the highest price that you wish to pay per view when setting up your campaign as you select your targeting groups. Targeting methods that you can select may include — keywords, placements or demographics.

For example if you think it’s worth 10 cents for somebody to view your video, then you can set your maximum cost per view for only $0.10.

For in-stream video ads, you’ll pay a maximum of $0.10 when someone watches your video for 30 seconds or if they watch it to the end, whichever comes first. You won’t pay a cent if they decide to skip the video or drop off within 30 seconds.

Video interactions from your viewers also include clicks on your call-to-action overlay banners, your cards, and your companion banners.

For in-display video ads, you’ll pay a maximum of $0.10 when someone watches your video. You’ll be charged only when viewers choose to watch your ad by clicking on the thumbnail.

How do you decide what Cost Per View bid amount to set?
You can base this amount on the forecasting data that’s displayed when you select targeting settings and your maximum Cost Per View. You can also base this on what you know about your business and the value of your sale. 

For example, if you sell handcrafted model ships for $1,000 each, then that’s probably worth more to you than selling ebooks for $10.00 each. You can set a maximum cost per view of $50 for your handcrafted model ship ads, and a maximum CPV of $1.00 for your ebook ads.

That’s it!

Now you know how much it costs to run an ad on YouTube.

If you want to learn how to set-up your first video ads campaign then download my Video Ads cheat sheet at:

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