Cost of advertising on YouTube

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

It should be said that all agencies work differently, and the price of viewing the same video can greatly depend on the right strategy and correct settings of YouTube advertising. Working with experienced professionals you will get more conversions for the same money and save the total budget of the advertising campaign (because with the right strategy shows ads are seen only by target users who are at the selected stage of the sales funnel).

Let’s consider what the price of contractor services depends on on the example of building a strategy for an advertising campaign and its implementation.

How is the cost of advertising placement on YouTube formed?

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

• Working with a cold audience. We use videos about our product that help people make a choice from a wide variety of options. Such videos are suitable for users who came to our site by general search and information queries (another option: we could find them in the Google contextual-media network by specific interests, website topics, etc.). These users need to be helped with choosing 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 them choose a specific product, and to cut off the untargeted audience (so as not to waste resources on them in the future);
• Working with a warm audience. In this case, the interaction is with people who are ready to buy, have chosen a product, but have not yet decided who to order from. In this case we can show videos with reviews of 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 (entice the user with a time-limited promotion or special offer);

The ability to build such virtual funnels of interaction with customers, using all the tools of Google advertising and taking into account the behavior of users from other channels of customer acquisition and determines the level of expertise of the team that places video ads in YouTube.

The client sees the result in saved money and a significant increase in the number of conversions for a similar budget.

How much does it cost to click on a YouTube video ad?

The price of traffic from YouTube advertising depends on the region, country, the 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 an advertising campaign on YouTube?

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

If advertising on video hosting is the main source of traffic, then the minimum recommended budget – from $300.

Let’s compare the cost of video advertising in YouTube with radio and TV

Advertising on the radio. What result will you get in radio advertising with a budget of 50000 UAH/month? Minimal. And it will be hard for you to calculate the result of the RC (how many conversions were received and how many people visited the site). Difficulties will arise and with repeat sales – it will be difficult to segment this audience and run on it advertising-pursuit and other types.

TV advertising. For advertising on TV, the budget for RK in 50000 UAH is extremely small (it is 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 the advertising paid off, how much one conversion cost).

Advertising on YouTube. For 50000 UAH in Ukraine you will be able to deliver information about your brand (product) to a specific, selected target audience at the right time, without annoying 714,285 times! 714 thousand. At the same time, if the video is more than 30 seconds – money is charged only for views of 30 seconds or more.