Here’s a fun fact for you.
YouTube is the second most popular website on the Internet, only trailing behind Google.
To blow your mind even more, there are over 30 million active users on YouTube every single day. They watch a collective five billion videos per day.
So, naturally, you’d assume that advertising on YouTube would inevitably result In more engagement for your business, right?
It’s not quite as simple as that.
With such a massive influx of content on the site, you need to distinguish your advertisements to make sure they reach the right audience, as well as making sure that you’re being cost effective with which ads you pay for, and how much you’re paying.
Well, let’s not waste any more time – buckle in, and let’s delve into the world of YouTube cost-effective advertising.
Why is YouTube good for advertising?
As we’ve said – the massive user count alone is enough reason to justify advertising with YouTube.
If this isn’t enough, there’s also the fact that YouTube users are highly engaged – watching billions of videos everyday. This is ample opportunity for your business to be seen by fresh eyes!
Advertisers can also use Google AdWords to access advanced targeting and tracking systems. This means that you can target users based on age, location, gender, and online behaviour, then using this information to track and measure the effectiveness of your campaign.
How does YouTube advertising work?
It’s important to keep in mind one thing, and one thing only: YouTube has intent.
Essentially, people using YouTube often show up to the site with a purpose, like learning how to knit, or cooking up a storm.
When serving ads, YouTube takes a few things into account:
- Google Ad settings
- Google search history
- Other videos the user has viewed
- Whether or not the user is signed in – this shows viewed websites, geographic location, gender, age, etc
How much does YouTube advertising cost in 2022?
As with all Google AdWords campaigns, the price of YouTube ads is inclusive of bidding for placement.
Advertising on YouTube results in paying per video view. If a user views your TrueView ad for at least 30 seconds, for example, you pay for that ad view. The same applies if they engage with your ad by clicking a call-to-action overlay or a card.
YouTube ads can cost anywhere between $0.03-$0.30 USD per view, and the generated views also count to your overall YouTube viewer count – score!
Most businesses start with $10 per day for local campaigns, according to YouTube themselves.
The cost of YouTube advertising is influenced by a number of factors, such as:
- The timing of your ads
- The quality of the content
- Ad messaging option
- Ad formatting option
- Targeting
- Bidding
- Your overall goal
So, what's the straight answer?
Spoiler alert: there isn’t one.
We know – it sucks. But just as is the case with most things digital, there is no one straight answer. Costs will vary depending on a bunch of different factors. As long as you focus on keeping your content high quality, and targeting those who will utilise your business most, there’s no reason that you can’t find success on YouTube advertising.
Of course, if all of this is too confusing, we’re already here to help. Grab a free proposal from Local Digital today, and see how we can transform your digital marketing.
