1,9 billion. This year, there were many unique users logged on to YouTube. And given that you can access YouTube without logging in, it’s likely that there are even more people viewing content. Even though the number is impressive, you should think twice before investing some of your marketing budget in YouTube advertising. And you should have deep knowledge about what are the factors that impact YouTube promotion costs? Because these factors will decide the YouTube ad costs and if you are investing on that you need to have some knowledge, it would be beneficial for you.
Factors that really impacts YouTube promotion costs
Your bottom line will ultimately be affected by a number of factors.
You don’t need to be an expert to start using Google Ads (formerly known as Adwords) and YouTube Ads, but it does take a lot of effort and dedication to learn everything there is to know. Read our YouTube Advertising Guide before you get started so that you can learn the fundamentals and set up your YouTube advertising.
The elements that affect that YouTube promotion costs will be discussed in this article.
Let’s start now.
First cost determinant : Bidding strategy.
This is the most important factor that impacts YouTube promotion costs. When running adverts on YouTube, you will only spend as much as you choose to pay, much like we’ve seen with the majority of video advertising platforms.
Your bid amount is what this sum is known as, and you can be sure that Google won’t ever exceed it.
You can set your bid amount in one of two ways:
- Daily bid sum (aka your daily budget)
- Campaign total (how much you are willing to spend on your campaign all in all)
Regarding your approach to bidding, you too have choices.
Your bid technique and bid amount are somewhat different. What you want Google to do with your money is that (bid amount). There are two categories of tactics:
Reserved\sAuction
We urge beginners to avoid reserved bidding and to stick with the auction bid because it gives you so many more alternatives.
However, even with the auction bid, things can still be a little challenging. There are various auction strategies for YouTube Ads, according to Google:
Maximum cost-per-view (CPV).
The maximum you wish to pay per view is the bid amount that you specify.
Maximum CPM.
The bid amount chosen is the most you wish to spend for each 1,000 times your advertisement is displayed (cost-per-thousand impressions).
Target CPM :
Your average cost-per-thousand-impressions (CPM) bid is the amount you are willing to pay (average cost-per-thousand impressions).
Viewable CPM.
For each thousand visible impressions of your advertisement, the bid price chosen is the maximum you wish to spend. Google states that if you do this, an advertisement is considered “‘viewable’ when at least 50% of the advertisement shows on screen for two seconds or longer.”
Target cost per click.
With this one, Google Ads will automatically establish bids to provide you with the greatest number of conversions at the target cost-per-action (CPA) you define via the bid amount. Because Target CPA automatically determines an optimal CPM bid for your ad each time it displays, Google claims that “you’ll be invoiced at a cost-per-thousand impressions (CPM) rate.”
Maximize Conversions.
With the use of this method, you can automatically configure your bids to increase conversions while staying under your spending limit.
Side note : Observe that cost-per-click (CPC) is not included. For the reason that Google does not mention it as one of the bidding techniques for YouTube video advertisements, we have left it out of this list. But when you select a cost-per-action (CPA) plan, clicks are included in your costs; hence, paying for clicks does exist, but in a deceptive method that isn’t referred to as CPC.
Remember that your bidding strategy may already be established depending on the Campaign Goal you selected when you created your advertisement.
To determine how your ad goals and campaign subtypes affect your ad spend and ROI, it’s critical to test them. You’ll be able to choose better ads with more cost-effective bidding techniques as you test the platform and become more accustomed to it.
Second cost element : Competition.
When we use the word “competition,” we actually mean a number of things. So let’s try to sketch a picture of the YouTube advertising landscape before we get started:
Consider Google/YouTube advertisements as a sizable auction house.
Google is holding an auction for ad slots in the space, and you and your rivals are in the audience vying to secure those placements for your company.
By way of illustration, if you select a Video ad campaign (ad type) + Brand awareness and reach (the aim) + Skippable in-stream advertising, your bid strategy is by default set to Target CPM and you are unable to change it.
Now, just as in a genuine auction room where other bidders can drive up the price of the bid, your rivals can raise the price of placements by putting in separate bids for the same keywords, audiences, demographics, etc. The cost will increase in direct proportion to the number of rivals bidding on the same keyword and target market. But there is good news: Google doesn’t always choose the highest bidder. Who wins depends greatly on the relevance of your ads (quality score) (more on that in a second.)
Third cost element: Ad relevance (and video quality)
Your quality score is influenced by your bid strategy, ad structure, and target audience. You must test each component of your ad to determine what works best for you before optimising it for overall relevance.
The calibre of your ad creative, though, is another crucial element. It’s imperative to use top-notch HDc videos with pixel-perfect resolution regardless of the screen size when producing video commercials.
Using a programme like the Promo Editor, which allows you to produce HD, intensely compelling, and effective videos, is a fantastic method to prevent receiving a low quality score. Long-term savings can be substantial as well. With the help of this effective DIY video creation tool, you don’t need to spend money on a tonne of HD clips or editing software in order to generate YouTube advertisements. This is particularly helpful if you’re testing YouTube advertising and need to try out several different variations to see which ones are most effective.
As other firms flood the marketing channels for the holidays, keep in mind that seasonal elements may potentially affect your relevance score and increase the cost. For you to maintain a high ad relevance score and help keep expenses down, especially over the holidays, we recommend hanging your message to embrace the season.
Fourth-cost-factor element : Ad formats
On YouTube, there are numerous ad formats to choose from. These are the advertising you should probably take into consideration for your campaigns because each type serves a different function.
True View adverts (In-stream ads)
YouTube has introduced video adverts called TrueView ads. Due to the fact that you only pay for actual views of your content, it has actually grown quite popular and successful among advertisers.
TrueView ads, as described by Google, ensure that you only pay “when a viewer watches 30 seconds of your video (or the duration if it is shorter than 30 seconds) or engages in other video interactions, such as clicks on the call-to-action overlays (CTAs), cards, companion banners, or on the video thumbnail for video discovery ads.”
The main reason it works is that you only pay for video views from those who are actually engaged with your content. These advertisements typically last longer (30 seconds or more) and behave less like social advertisements and more like standard commercials.
Google provides two primary TrueView ad formats:
In-stream advertising :
These are widely used as desktop or mobile advertisements. You interact with this kind of advertising all the time on YouTube, in fact. Typically, YouTube advertising in this format appear before to the start of a video. You have a chance to skip the video after 5 seconds, but you are not charged for doing so. You may also include CTAs in these ads to promote conversions and action.
Example of an in-stream advertisement with a call-to-action overlay
When generating your ad, you may specify whether in-stream adverts can be skipped or not. The new TrueView in-stream ad type includes pre-roll advertisements as well.
Video discovery ads.
These advertisements are displayed on the homepage, in the search results, and in the related videos section. Since they don’t play in the middle of another video’s content, they differ slightly from direct in-stream advertisements. These advertisements are shown to interested audiences depending on your targeting, which helps to increase the click-through rate (CTR).
What is the distinction between the two, and how are fees calculated?
“With TrueView in-stream advertisements, you pay when a viewer views 30 seconds of your video (or the length if it’s shorter than 30 seconds) or interacts with your video, whichever happens first,” according to Google. When someone clicks on one of your TrueView video discovery ads to view the video, you get paid. This implies that you only pay when someone chooses to interact with your advertisement.
Bumper Ads :
Bumper advertisements are non-skippable, 6-second videos that work best for brand-reach video campaigns. When used, “9 out of 10 bumper ads resulted in a considerable rise in ad recall,” according to Google. These ads are more like add-ons that you can run alongside your TrueView campaigns.
Like TrueView ads, they can contain CTAs, but the main distinction is that they are condensed and cannot be skipped (though YouTube has limited unskippable content). Because bumper advertising are often shorter, they are more affordable. Again, though, it depends on who you’re aiming for.
Use bumper advertisements to raise customer awareness, but then run a TrueView campaign afterward to pique their interest even more. As part of a remarketing strategy, you can also be inventive and add bumper advertising.
Non-video specific alternative ad kinds
There are numerous non-video ad choices available in YouTube advertising. This is fantastic if you’re new to video marketing and want to evaluate the viability of YouTube advertisements.
Here are some alternative ad types to video that you can utilise.
Overlay ads :
In a video that your target audience watches, these desktop-only ads appear in the bottom 20%. But only sponsorship campaigns are permitted to use this particular name-type advertisement. There is a solution, which is good. This kind of overlay appearance can be configured for an Image Ad in Google Ads.
Display Ads.
Display advertising, another type of desktop-only ad, appear in the upper right column of your desktop screen. Although it can put the advertisement below the fold of the screen if your viewing window is greater.
Cards and Sponsored Cards.
You can purchase ad spots on videos and show an ad card as a kind of overlay that is somehow tied to the content. The advertisement offers viewers the choice to either click past it or close it so that it is no longer visible to them.
These are the primary ad forms, and each will affect your prices in a unique way. As we can see, one ad type does not always rank more expensive than another. The quality of your ad and its format also add to the total value and usefulness of the ads served to YouTube visitors, and this typically results from your bidding strategy.
The only effective technique to determine which option is less expensive is to test different ad versions and compare their effectiveness.
Conclusion
So these are the factors that impact YouTube promotion cost or YouTube ad cost. Knowing these factors will give some advantage while investing in YouTube ads. So, I hope you enjoyed this article.
But last thing I want to say is if you are somehow thinking that you can’t do or manage all of these things related to promotion then you can hire a video promotion company like Video Boosters Club and Promozle. They both are very good in their own way. By choosing them you will get more YouTube views and subscribers and likes. Video Boosters Club promotes all kinds of videos and Promozle only promotes music videos on YouTube. So, choose as your requirement. But don’t worry about the quality of the company because they are very professional and have expertise in their industry.
