After Google, YouTube is the second-largest social media. As of 2023, YouTube has more than 2 billion active users. It is estimated that more than 1 billion videos are watched on YouTube every day.

So YouTube is definitely a platform that offers a tremendous opportunity to people who want to run ads on it. Aside from watching videos, you can create your YouTube video campaign, and consequently improving your brand awareness, and generating more leads. You can also grow your YouTube channel through ads a lot faster.

If you have been recently thinking about promoting your videos on YouTube, or reducing the cost and optimizing your YouTube ad campaign, you may find the information in this article useful.

How much does it cost to promote on YouTube?

There are some key factors that affect the cost of promotion on YouTube. Based on the format you choose to promote your videos, as well as some other factors, the YouTube ads will cost differently.

On Average for each click or view on your ad, it will cost you 0.010 to 0.030 USD. In other words, for your video to get let’s say 20,000 views, it will cost you approximately 300 USD. Now if we multiply that number by 200,000 that would be $3,000 more or less.

On top of that, if you live in a place other than the US, you need to convert the amount I talked about to your local currency and see how much that will cost.

The main factors affecting the ads cost on YouTube are as follows:

Ad format

There are various ad formats you can choose from to promote your videos and these are:

  • Skippable in-stream add
  • Non- skippable in-stream add
  • In-feed video ad
  • Bumper ads
  • Oustream ads
  • Mashead ads-

Targeting option

YouTube provides some practical options to help you target your audiences effectively. For example, you can select a specific location for your ads to be shown. You can also choose a specific gender, age group, etc. However, if you target your audiences and narrow them, the ads will cost you a little more.

Bidding strategy

When it comes down to promoting your videos on YouTube, bidding plays an important part. There are three different types of bidding known as Cost Per View (CPV), Cost Per Impressions (CPM), and Cost Per Action (CPA). You should be careful to pick the right bid strategy for it will help you cut down your advertising cost.

The Avg. CPV is $0.010, the Avg. CPM is $0.40 and the Avg. CPA is $0.030

If you have a product or service to sell or if you want your target audience to take any particular action, maybe to take action on your site, adding CPA to your ad campaign is a wise thing to do.

However, if you want your videos to get more views so your channel grows faster, consider adding CPV to your ad campaign. You can also add both CPA and CPV to your ad campaign. But for some reason, it is better to not pay money for CPM right away. I would not recommend you add CPM to your ad. First, test the other two options and see if you can achieve a good result.

How to optimize your YouTube ad?

By following some simple methods, you can not only optimize your YouTube ad campaign but also cut down on the overall cost.

Set up device targeting

You can choose your ad to be shown to only mobile users, or desktop users to cut down on your advertising cost. Usually, if you choose only mobile users to see your ads, YouTube will charge you less. So if you want to just grow your channel or something like that you can choose your ads to be shown to people who usually use YouTube via phone.

However, if you want your audience to click on an ad and maybe take action on your website, and the like, choosing the ad to be shown to desktop users would be reasonable.

Use discovery ads

By using discovery ads, the cost will be lower. You can also use discovery ads to maximize brand awareness and reach to larger audience. Since discovery ads are only suggested to your audiences, and they are not forced to watch ads or anything, therefore, if someone is interested in your ad, he will click on it and take action. Besides, you will be only charged if your audiences click on your ads if not then that won’t cost you anything.

Enable expanded inventory

Enabling this option will not only cost you less money but also help you put your ads on the content you want. If you are someone with a small business or you simply want to grow your channel on YouTube then enabling expanded inventory may help you to optimize your ad campaign and achieve a better result.


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