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Youtube Ads

Would it Break the Bank to Advertise on YouTube?

April 2, 2019

As most of us know, Google owns YouTube, Therefore you advertise on YouTube using Google AdWords famous network. As with any other type of Google AdWords campaign,


Reading time: 5 minutes.


As most of us know, Google owns YouTube, Therefore you advertise on YouTube using Google AdWords famous 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 determine how much YouTube Ads cost definitively, it’s always variable, but here’s the good news, you have FULL control over your budget!


We have previously looked at YouTube ads from the YouTuber’s point of view and so far we found:


YouTube ads have an average cost-per-view of 0.10-0.30 Pounds, and the views that you generate will count towards your overall YouTube viewer count.


The average cost of reaching 100,000 viewers is around 20,000 Pounds.


Does it Worth?


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.Vs, there has also been a paid rise in watching YouTube on television sets.


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


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


The only difficult 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.


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.

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.

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: if you promote a video, you could end up paying a rate as low as 3 cents per view. 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: 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 who watch at least 30 seconds of your video (if your video is shorter, you pay for those who watch the full video). So, you don’t have to worry about paying for all those people who skip through your video as soon as they can. 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.

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 doesn’t reflect well on your brand, either.


It depends on the expectations of your target audience. Some firms can get away with a 5,000 Pounds home-made video. Others will look shabby unless they spend 100,000 Pounds 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 the YouTube is not the same as broadcast T.V, a live TV viewer doesn’t have a skip Ad button, while you may think you can save money by refusing 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 don’t pay to advertise on YouTube. They have a thriving channel, where people search for its latest safety videos.




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 Pounds 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 display ad.


Make sure that you don your targeting before you set your bidding options. These bidding suggestions that youtube makes a 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.

You will also set a maximum figure you are willing to pay per day. This ensures that you don’t 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 – the 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”


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