With over 2 billion logged-in monthly users, YouTube is one of the most popular search engines, processing more than 3 billion searches a month. While Google is the queen of the internet, YoutTube is bigger than Bing, Yahoo, Ask, and AOL combined.

An increasing number of people turn to YouTube when they have to find practical information about products and services. As the world’s largest video hosting platform, and the second most visited website in the world, YouTube largely influences consumer behavior and shape the way people buy things.

People watch over a billion hours of videos on YouTube every single day. Isn’t it fascinating?

YouTube is a truly powerful platform where people can share their content with the entire online world. From a business perspective, YouTube must be an important part of your paid advertising strategy.

Wondering how much YouTube advertising cost? Stay tuned if you want to learn more YouTube as a powerful advertising channel and how much it cost you to advertise on the platform.

Why Choose YouTube To Advertise Your Business?

Before we discuss how much does Youtube advertising cost, let’s take a quick look at the reasons you should choose YouTube.

Millions of users watch over one billion hours of content every day.

With such a large number of users spending a massive amount of time on a single platform, YouTube is one of the ideal channels for businesses to advertise their products/services.

From proven influence on purchasing behavior, the following 3 features make YouTube a great video advertising platform:

1. Enormous Reach: YouTube Has 2 Billion Monthly Users

YouTube is a social media network as well as a search engine that reaches an incredibly broad range of internet users. You can advertise your business to people seeking information and to those seeking social interaction. Most other advertising platforms don’t offer such diversity and reach.

2. Influence On Purchasing Behavior

Studies have shown that YouTube has a major impact on purchasing behavior. According to the YouTube insight report, 72% of auto-vehicle purchasers, 62% of smartphone purchasers, and 66% of beauty product purchasers revealed that Youtube influenced their purchases.

3. Opportunity To Share Your Story To The Right Audience At The Right Time

To produce the maximum results for your brand, all you have to do is show the right message to the right person and at the right time.

While you have to create super appealing content for your target audience, the targeting features and analytics help you share your story with your audience and at the right time.

How Much Does It Cost To Advertise On YouTube?

Since Google owns YouTube, businesses advertise on the largest video sharing channel using the Google Adwords networks. Like other Google AdWords campaigns, the cost of your YouTube ad involves bidding for ad placement.

So, it’s hard to come up with an exact number when it comes to YouTube advertising costs.

The Quality Of Your Content

The quality of your video ads plays a key role in determining the overall cost. If your content isn’t appealing, viewers will rush to press the ‘skip’ button and your money will go down the drain.

The key is to create memorable ads to stand out amongst your competitors. If your content is strong enough to drive your audience to re-watch and share, your Youtube advertising cost will be nothing as compared to what you get in return.

Google rates video ads based on how relevant it is to the audience an advertiser is targeting. It determines this by evaluating how many users actually engage with an ad.

The Timing Of Your Ads

No matter your industry or business goals, make sure to show content to people in each stage of their buyer’s journey. Tracking can help you figure out when is the right time to get your message across.

Ad Format Options

There are four main YouTube ad formats. Each format has different mechanics, lengths, and times during which it appears in users’ video watching experience.

Before you start creating ads, make sure to consider format options. Some are more expensive than others. Besides your audience will respond differently to different format options, so make sure you choose the one that your audience likes the most.

The Messaging Of Your Ad

Your Youtube advertising cost will be higher if your messaging is off. It’s no surprise that the success of your digital marketing campaigns, especially YouTube advertising, largely depends on messaging.

It’s probably a good idea to test various types of messaging to see what works for you.

Biding

YouTube’s ad placements work through a bidding system, like most of Google’s adoptions. How much your competitors are bidding for the same ad placement will impact the cost.

For video ads, you’ll be bidding on a cost-per-thousand (CPM) or a cost-per-view basis. You’re charged every time someone interacts with or watch the ad for longer than 30 seconds.

Targeting

YouTube ad campaign should be built in a way that engages those who care about your brand or products. Since some audiences are more expensive to advertise to, targeting can impact your cost.

Google enables advertisers to use plenty of targeting options to help them reach the right audience. For example, you can determine which YouTube channel your videos should appear on. You can even hand-pick specific videos to get maximum return.

When you create a campaign, you can search for and add channels in the “Placements”. It’s recommended to select high-performance channels for your campaign. Let’s talk more about targeting options in the next section.

How Does YouTube Advertising Work?

Google keeps improving the way businesses connect with their customers, especially across mobile devices where more than 50% of YouTube views take place.

One of the biggest developments was enabling advertisers to target viewers based on their Google search history.

It’s possible to target people based on what they have recently searched for. If your video content is close to what viewers have been searching for, viewers are likely to watch the entire ad or click on it to visit your website.

You pay only when a user chooses to watch your ad.

Most companies start with at least $10 per day to run local campaigns.

You can adjust your daily budget based on the range of potential customers you want to reach.