How Much Does YouTube Ads Cost in 2021

youtube ads cost

The information in this post is about how much YouTube ads cost in 2021, and it covers the value of YouTube advertising, the factors that determine your YouTube ad costs, and how to create YouTube ads that make the most of your budget.

Watch time, audience targeting, and campaign objective are the factors that determine the cost of YouTube ads.

However, you will be charged $0.10 to $0.30 any time someone views your ad or engages with your ad by clicking on a call-to-action, with an average of $10 daily budget.

How Much Does Advertising on YouTube Cost?

Running an ad on YouTube will cost you some money before the service will be offered. You will only be charged when someone watches the whole of your ad or clicks on your ads. Therefore, how much do you really have to pay as a result of this?

The typical rate that businesses experience when they invest in YouTube advertisements is $0.10 to $0.30 per click, though that’s not a standard cost every time.

This cost will differ depending upon the video quality, your target audience, and your campaign objectives.

The amount of money spent on a campaign depends on the day-to-day budget set for the campaign. Most business owners invest $10 or more a day to run an ad campaign on YouTube. The amount goes higher as the campaign becomes more popular.

You are going to pay on a cost-per-view basis, which means that each time someone views your ad-you-will-pay-for-that-view.

You may need to set a maximum amount you want to spend on views to ensure that you don’t spend more than your campaign’s budget.

Why Would You Advertise on YouTube?

YouTube has more than 1.5 million monthly users who watch YouTube on mobile devices for one hour or more. Watching YouTube on television sets is now easier with the current popularity of Smart T.V.s

Moreover, when it comes to search advantage YouTube search engine is second to Google. YouTube is now a favorite medium for advertisers worldwide, having Google Adwords standing strongly behind it.

Your reason for advertising on YouTube using the Google AdWords network is because Google owns YouTube. The price of YouTube ads involves you bidding for ad placement as with any other type of Google AdWords campaign. Therefore, you can’t say exactly how much YouTube ads cost definitively.

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

Studies have shown that YouTube has a major blow 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. 

The best thing about the platform is that it helps consumers picture how a product could fit into their lifestyle. Your content can directly control the purchasing decisions of your customers.  

With YouTube, you can possibly produce the maximum results for your brand by showing the correct message to the right person and at the appropriate time.

What Determines Your YouTube Ad Costs?

There are a few factors that determine how much you spend on YouTube ads such as your ad type, your bid, your bidding selection, and your targeting options.

Your YouTube advertising rate will generally be controlled by these factors in diverse ways. For instance, because you’re setting a definitive number for what you’re willing to pay for a click or view, your bid will likely have more of a direct impact on your YouTube ad costs.

The influence YouTube ads have on Your YouTube Ad Costs

The format in which your video is produced influences the cost of your YouTube ad campaigns. The following are the various types of YouTube ad formats you can use:

Display Ads: Display ads appear above the video suggestions list on the right corner of the feature video.
  • Overlay Ads: These ads appear on the lower 20% portion of your video and overlay your video. With this type of ad, you have the option to close your ads when they pop up.
  • Bumper Ads: These ads have a typical duration of 6 seconds and must be watched before someone else views the video content. These video ads hit the point, get the message across quickly, and disappear immediately.
  • Skippable Ads: You can see the skippable ads appear before, during, and after video content, taking up the whole of the video box but displays a countdown timer that generates a button you can click to skip the ad. The ad must typically appear for 5 seconds before the button appears.
  • Non-skippable Ads: These video ads are short and just last for a few seconds. Viewers must see these video ads before the content can be viewed.
  • Long Non-Skippable Ads: These ads must be fully played and cannot be skipped.
  • Sponsored Cards: These cards show information that may be relevant to your videos. You can run ads with the aim of featuring products that are about to show in your video content. Your audience gets a teaser card of the product for a few seconds to make them stay longer.

These various ad formats have control over the cost of YouTube ads. Some of these ads have diverse payment options based on the actions your audience takes. Sometimes you will have to pay for them viewing your video, and sometimes you’ll pay after they watch 30 seconds of your ad.

Your target audience also has control over your YouTube ad pricing. Targeting an audience that a lot of your competitors are targeting will cost you more because of the intense competition for the ad spot.

What You Should Do Before Getting Started

Make sure to clearly identify your goals and strategy before building a video ad campaign or selecting the ad type. To make the right choices throughout the process, try having a well-planned video ad strategy.

Present your message in a way that immediately grabs attention and delivers an enlightening experience. Define your objectives, make sure to understand and use targeting options, create compelling content, add interactive elements to your ads, and remember to use YouTube Insight.


The above information will help you if you are planning to run an advert on YouTube. Knowing the cost for your ads is very important so you can work well towards your budget.

You can realize from what you read that the exposure you get running an ad on YouTube depends on how much money you are willing to spend all through the ad campaign.

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