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how much does it cost to advertise on YouTube?

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are you thinking of launching yourself into the world of YouTube and advertising your brand there? If so, you may also be wondering if it is really profitable: How much does it cost to advertise on this platform? Will it be profitable for me? We will answer all your questions in this post!

why YouTube?

Nowadays,video consumption accounts for more than 85% of Internet traffic, which makes it the ideal medium to attract new consumers to your brand. The reason is simple: it is a format that is easy to consume, agile and, above all, entertaining for the users who consume it.

According to a study by Oberlo, YouTube had 2 billion users worldwide in 2020, which does not include the number of people who consume video on this platform without being registered, as it is not necessary. Therefore, we will be many more users than the official figures, which still puts YouTube in a better position. In addition, this sum of users spend an average of 1000 hours a day consuming videos on YouTube, which makes this social network an excellent platform for consuming videos.

As if this were not enough, YouTube's search engine is one of the most consulted in the world, just behind Google, with all that this means for SEO positioning. What else can we say to convince you of the usefulness of this application? Well... that advertising on it is not as expensive as at some point we may have thought.

If you have considered advertising on this platform, it is probably because you consider that your audience is there and that advertising on YouTube videos can help you capture leads. It is quite likely that there is an audience interested in the products and services of your brand, taking into account that users who consume videos through this platform are very diverse. On YouTube we can find videos from very different fields, which means that there is always a target audience for us.

However, advertising through this video platform will most likely bring us a high number of benefits for our brand (increase visibility, number of sales...) but we must also know very well how this platform works. It is important to work our ads and create a good digital marketing campaign to gain new users through YouTube video ads.

The main advantage of advertising on YouTube compared to other more traditional advertising media is its wide segmentation capacity. Therefore, the maximum profitability when placing ads on the platform is achieved by attending to segmentation criteria established by the platform itself. YouTube offers you the possibility of adjusting a budget guaranteeing that the ads will be viewed by users who are really likely to become customers of your brand (the target audience we are looking for).

This means that no matter how much capital you need to invest, your return on investment will always be higher than what you can get through more traditional advertising media. Note that you only have to pay when a user clicks on the ad or, in the case of True View in stream advertising, you only pay if the content receives a minimum viewing time. But how much does it cost to advertise on YouTube and how does advertising on YouTube actually work?

how much does it cost to advertise on YouTube?

Many brands dismiss the idea of advertising on YouTube because they already start with the idea that it will be very expensive as well as being part of a very complicated process. But in reality, this is not the case.

The first thing you need to be clear about is that there are many different ways to pay on YouTube, which makes it quite accessible depending on your needs and budget, making the project viable for your company. The different ways that YouTube offers to advertise on its site are:

  • Price per click (PPC): In this modality, YouTube will be based on a bidding system that increases or decreases the price of the cost depending on the level of competition of the chosen keyword, i.e., depending on how many times the keyword of our ad is consulted and how much impact it has on our ad, YouTube will establish a price or another, which will range between 0.01 and 0.30 euros, which we will only pay if the user, after seeing the advertisement, clicks on our website.
  • Cost per click (CPC): With this modality, YouTube values the budget that you set for the advertising campaign. Based on this, it establishes the cost for them that your users click on your website after seeing the ad. Depending on this, the platform will charge us an amount of money or another. The prices will vary depending on the budget that we have initially deposited.

  • Cost per thousand impressions (CPM): This is the most difficult modality for users to know if it is profitable or not, since you will only pay when your ad has been seen a thousand times, regardless of whether it has been clicked on your website or not. In this bidding system, our brand will put an amount of money that will only be charged by YouTube when our ad has been shown a thousand times to different users.
  • Cost per view (CPV): In this case, you will pay every time a user views your ad in its entirety. In many cases, if they are 30-second ads, the user will have the option to "skip ad", if they do so, you will not pay for it. In many cases, companies choose bumper ads: 6-second videos that cannot be skipped and in this way the user will see them in their entirety. It will be more expensive because we will pay each time, but we impact more on the user and their decision about our brand.
    Moreover, in this category, the cost of each ad will be determined based on the budget we have set. For example, if we set a budget of 1,000,YouTube will tell us how many times our video (ad) will be seen with that money. The cost of each ad will also depend on where it is placed: if the ad is at the end or the beginning of the video, it will be cheaper than if we place it in the middle of the video, for example .

These are the payment methods that YouTube uses and, therefore, they will adapt to our budget. Therefore, the first step we must take is to establish how much money we want to invest in advertising on this platform. From there, we just have to enter YouTube Ads Advertising, and see what possibilities this platform offers us with the budget we set. This is the great advantage of YouTube, it will adjust to our resources and we choose whether it will be profitable or not. And you, do you want to know how your brand can advertise on YouTube?

Pon un vídeo corporativo en tu vida

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