The cost of advertising on YouTube

The price of advertising on YouTube is formed from two components: the cost of setting up and maintaining video ads (agency commission) on the YouTube platform and paying directly for traffic (video views by the user).

It must be said that all agencies work differently, and the price of watching the same video can greatly depend on the right strategy and the correct YouTube advertising settings. By cooperating with experienced specialists, you will get more conversions for the same money and at the same time save the overall budget of the advertising campaign (after all, with the right strategy, only target users who are at the stage of the sales funnel that we have chosen see ad impressions).

Let’s consider what determines the price of the contractor’s services using the example of building an advertising campaign strategy and its implementation.

How is the cost of advertising on YouTube determined?

It all depends on the complexity of the implementation of the project and the strategy that is applied. For example, let’s take two different strategies for displaying ads on YouTube: working with a cold audience, and showing ads to those who are already ready to purchase a product or service.

• Working with a cold audience. We use videos about our product that help a person make a choice from a wide variety of options. Such videos are suitable for users who came to our site for general search and information requests (another option: we could find them in Google Display Network for specific interests, site topics, etc.). These users need to be helped with the choice of a product or service and introduced to the brand (they are at the initial stage of the sales funnel). At this stage, we can pursue three main goals: to earn the trust of potential customers in the brand, to help choose a specific product, to cut off the non-target audience (so as not to waste resources on it in the future);
• Working with warm audiences. In this case, interaction occurs with people who are already ready to buy, have chosen a product, but have not yet decided who to order from. In this case, we can show a video with reviews about our product with arguments why we are better and reasons to order from us. At this stage, it is important to speed up the decision-making process (lure the user with a limited-time promotion or special offer);

The ability to build such virtual customer interaction funnels, using all Google advertising tools and taking into account user behavior from other customer acquisition channels, determines the level of expertise of the team that places video ads on YouTube. At the same time, the client sees the result of saved money and a significant increase in the number of conversions with a similar budget.

How much does a YouTube video ad click cost?

The price of traffic from YouTube advertising depends on the region, country, level of competition in a particular area and the demand for your target audience from other advertisers.

What is the minimum budget for traffic to start advertising on YouTube?

If an advertising campaign on YouTube works in conjunction with other advertising channels, then the minimum budget for video advertising traffic is from $100 per month. If advertising on video hosting is the main source of traffic, then the minimum recommended budget is from $300.

Compare the cost of YouTube video advertising with radio and TV

Radio advertising. What result will you get in radio advertising with a budget of 50,000 UAH/month? Minimum. And it will be difficult for you to calculate the result of the AC (how many conversions received, and the person went to the site). Difficulties will also arise with repeat sales – it will be difficult to segment this audience and launch harassment and other types of advertising on it.

Television advertising. For advertising on TV, the budget for the Republic of Kazakhstan is 50,000 UAH minimal (not even worth starting). Suppose you can allocate a much larger budget. In this case, how will you calculate the result and analyze it (whether advertising paid off, how much one conversion cost).

YouTube Ads. For 50000 UAH in Ukraine you will be able to convey information about your brand (product) to a specific, selected target audience at the right time, without annoying 714 285 times! Once again. 714 thousand. Moreover, if we are talking about a video of more than 30 seconds, money is debited only for views of 30 seconds or more of the video.