Youtube is one of the biggest media platforms on the internet, with over 2.1 billion users worldwide and 5 billion video views every day.
As a result, it’s no surprise that YouTube is also an extremely popular platform for advertisers.
We’re all familiar with Youtube ads – if you aren’t using the paid version, it’s hard to go a video without one – but how much does it actually cost to buy ads on Youtube?
If you’re interested in advertising on Youtube but want to know the cost first, then you’re in luck!
We’ve done all the hard work for you, and made this handy guide with everything you need to know about YouTube ads.
Here, we’ll take you through everything from how much Youtube ads cost to how much they earn, as well as whether or not it’s worth buying ads on Youtube.
So let’s get started, shall we?
Different Types Of YouTube Ads
First things first, let’s take a look at the different types of YouTube ads.
YouTube actually uses five main types of ads, each with its own features, pros, and cons. Here’s a brief breakdown of each type of YouTube ad.
Skippable Video Ads
These are by far the most common types of ads on YouTube, and are what you’re most likely to see when you click on a video.
These are short video ads that play before, during, or after a video, with the option to skip the ad being available after 5 seconds.
These ads can last anywhere from 10 to 30 seconds, with some even lasting multiple minutes. Non-skippable ads can also come in pairs, playing one after the other.
However, this (along with this form of ad’s saturation on YouTube) has made them an unpopular format among users.
Non-Skippable Video Ads
Non-skippable ads are, unsurprisingly, video ads that you can’t skip.
These ads can last between 10-20 seconds long; this limit used to be 30 seconds, but it was reduced to 20 after a negative response from users.
Non-skippable ads must be watched to completion before watching the video, and (like their skippable counterparts) can have two ads be played consecutively.
Despite the backlash to these ads, having two play at the start of a video is intended to keep the rest of the video ad-free.
However, this doesn’t necessarily apply 100% of the time, and you can still see more ads during a longer video.
Display ads aren’t a part of the video, and instead appear in the feed beside the video.
This is directly to the right of the video on a computer, or below the video just above the recommended video feed on mobile.
Unlike video ads, display ads appear on the feed for the entire duration of the video.
They can’t even be removed from the feed, though they make up for this by being fairly unobtrusive.
Typically, display ads implement a combination of written and visual aspects to help them attract the attention of customers and generate clicks.
Similar to display ads, overlay ads are a form of banner/pop-up ad that appears over the video itself.
These are only used on the computer version of YouTube, and cover around 20% of the lower part of the video.
Overlay ads are semi-transparent to let the video show through, and can be removed by clicking the X in the corner.
Despite being more intrusive than other types of YouTube ad, overlay ads aren’t really seen negatively as they can easily be removed and don’t particularly hinder watching the video.
They’re also hard to miss, and can include both visual and written elements.
Bumper ads are essentially a mini version of non-skippable video ads.
These short video ads typically play at the start of a video, but can also appear during or after.
They are only around 6 seconds long at a maximum, so they need to make a great impression to be effective.
How Much Do YouTube Ads Cost?
Because these ad formats are pretty different from each other, there are a couple of factors that can affect how much an ad on Youtube costs.
The price of a YouTube ad is mostly dependent on the way the ad is interacted with.
For example, video ads and display ads aren’t interacted with by customers in the same way, so need distinct costs as a result.
In general, an ad on Youtube will cost between $0.01 and $0.03 per view it receives, though the exact cost (and the parameters for the cost coming into effect) can vary depending on the format of the ad.
Perhaps the easiest ad format to understand is non-skippable ads and bumper ads.
Every time the ad is viewed, it implements the $0.01-$0.03 charge; this is known as CPI, or ‘Cost Per Impression’.
For skippable ads, things are slightly different. Instead of being charged every time the ad is shown, skippable video ads need to run for 30 seconds for the charge to take effect.
If the ad is less than 30 seconds long, this generally means that the entire ad needs to be watched.
As a result, skippable ads are a more cost effective method of advertising, but rely on users watching the full ad to reap any benefits.
When it comes to display and overlay ads, knowing how they’re charged is pretty simple.
Every interaction with a customer (in essence, every time the ad is clicked on) will cost you.
These are also generally cheaper than video ads, helping to balance out how much you’re spending for each click compared to potential earnings.
How Much Do YouTube Ads Make?
Okay, so we’ve looked at the different types of YouTube ads and how much they cost; now the only question is, are they worth it?
Like we mentioned earlier, YouTube is a massive platform that will let you reach a massive audience with just a few simple tricks.
Knowing how to properly use your ads and pushing for your target audience makes YouTube an incredibly useful platform for increasing your audience and promoting your business, product, or service.
YouTube ads are also cost-effective, and cost far less than many other forms of advertising.
This makes them a great choice if you’re looking to expand your business but don’t have a ton of budget for advertising.
With their low price and lucrative potential returns, YouTube ads can be a great budget option for giving yourself more reach.
Of course, the biggest advantages of advertising on YouTube depend on your business/company, along with how you go about your ads.
With the right know-how and a bit of effort, anyone can reap great benefits through YouTube ads.
Advertising on YouTube is popular for a reason – it works!
Because of how many people use YouTube on a daily basis, your ads are practically guaranteed a massive reach and large audience.
The low price of YouTube ads also makes them a lucrative choice, and playing the game right can lead you to great success!
So now you know all there is to know about the different types of Youtube ads and how much they cost, all you have to do now is put your newfound knowledge into practice.