How much does YouTube ads actually cost?
Do you want to know about YouTube advertising cost 2021? Let’s have a helicopter overview first. We are going to break down everything step by step, so you can get a feel of how much the YouTube advertiser pays. What is the average cost per view on YouTube? How much YouTube makes and then also how much the Youtuber makes?
The main factor here that must be mentioned is YouTube is just like Facebook and since google owns YouTube, some concept there as well are the same. It is basically a bidding system. It’s an auction. So, if you think about a traditional auction, you’re going to have the auctioneer and then you’re going to have all the bidders and they are going to be saying; hey, there is this item, how much are you willing to bid for this specific item? That is why YouTube advertising cost 2021 are tricky. The more bidders there are and the higher value the items are, the more each bidder is going to be willing to pay and it is the same exact concept with YouTube ads.
There is going to be certain videos where advertising or business owners are going to be a lot more willing to pay money to show their ads on those specific videos regarding YouTube advertising cost 2021 situation. Another thing is if someone is typing in a specific keyword as opposed to other videos that might be geared more toward younger kids or teenagers whom usually skip ads for example; someone that is not really going to have a credit card to pull out and buy something from them. Let’s go back to the auction example of having the bidders that are bidding on the different items. Those bidders are the advertisers whom are actually running ads on YouTube.
With YouTube’s advertising platform they make it really easy to be able to go through and choose where you want your ads to actually be shown. So, you can pick specific videos, you can say you only want your ads to show up on certain channels or something that one might like it. You can choose anyone that types in this specific keyword or a variation of that keyword, I want to show my video to those specific people, because for example I am in the real-estate space, so if someone types in how to generate leads in real estate; I know that person is actively searching for a solution, so, if I show an ad to that specific person, I would know that whatever I have to offer they are actively looking for it and then on top of that in addition to showing your ads on specific videos, channels or keywords; you can also upload custom data into the google ads platform and say these are the people that have already visited my website, these are the people that already leads in my database or potentially customers. In order to retarget these people, no matter what video they are watching.
After explaining these subjects to you, which you might have some questions like how much does YouTube ads costs or Is YouTube advertising effective? Is paying for YouTube ads worth it? How much is YouTube advertising cost 2021? Etc. So, if you want your YouTube advertising to be effective you know the basic idea about it.
There are three types of biddings. Let’s show it to you by bringing an example.
Advertiser A is willing to spend two Dollars, advertise B is only willing to spend 1 Dollar so obviously YouTube is going to show advertiser A’s video before they show advertiser B’s. However, what advertiser A has is what is called a daily budget, so, let’s say both advertiser A as well as advertiser B is willing to spend a hundred Dollars every single day on their advertising. As a result, what happens is YouTube is going to show advertiser A’s ad at the higher price point but then once that whole budget is spent that whole hundred Dollars; they are going to start showing advertiser B’s ad for a much cheaper cost. In result, if advertiser A has a 100 budget and they are willing to pay 2 Dollars every time their video is shown, then 100 divided by 2 it’s only shown to 50 people. Whereas advertiser B also has 100 Dollars daily budget, but they are only willing to spend one dollar cost per click on YouTube and although they are not getting those first impressions; they are able to get two times as many views in that video because they are not as high CPV (cost per view) or CPC (cost per click). Now what can we learn by this example?
You might be thinking that means I am just not going to bid anything and I am going to get all these cheap clicks and view and leads and everything, it is like I am having a free YouTube advertising system. Unfortunately, that also doesn’t work that great either. In conclusion, what you want to do is you kind of want to find a middle ground. You never want to be the advertiser that is bidding so high that you go and spend all your budget super quick and then all the other advertisers are getting all these leads and clicks for a lot cheaper, but you also don’t want to have your bid so low that YouTube actually never ends up showing your ads to anybody.
Obviously, this really depends on your market and the videos or the keywords that you are going after and the competition. Surly the more bidders the more advertisers; the higher the price points are going to be. Because it is just simple supply and demand.