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How Much Does It Cost to Advertise on YouTube?

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Recent stats show that YouTube boasts approximately 2.3 billion users around the globe, making it the most popular video platform to date. Ranking second to Google in terms of search engine queries, it’s no surprise that YouTube is one of the most effective digital marketing platforms. 

Content creators swear by it. Probably part of its popularity emanates from how the platform makes it easy for shared content to be eyeballed by a large audience at any given time.  

So, are you thinking of using YouTube to market your products or services? You’re probably wondering, how much does it cost to advertise on YouTube?  

Generally, you’re looking at between $0.10 and $0.30 per view or click and a daily budget of $10. But you’ll need top YouTube experts to run your ad campaign for effective results.

YouTube Pricing Model Explained

Before we start throwing figures around, we’ll explain the YouTube pricing model and how it works. YouTube uses the cost-per-view and click-per-click pricing model, which is similar to Google. What this means is user actions determine the YouTube advertising rates. 

In simple terms, if someone views your entire ad, you’re charged for that action. However, if they simply click on the ad, you are charged for the click. 

It’s really that simple. And whether you pay for views or click depends on the type of ad you create on YouTube.

Type of YouTube Ads Versus Cost

There’s a direct relationship between the type of YouTube ad you go with and how much you can expect to pay. The format of your YouTube video impacts the cost. If you go for bigger ad space and increased ad exposure, you’re naturally going to pay more. 

There are several popular formats you can decide to run with. The first is display ads designed to appear above the video suggestion list. 

Then there are overlay ads designed to overlay the video, and viewers have the option to ‘X’ them out as soon as they pop up. Next, we have skippable ads that appear before or during the video content.  As the name suggests, they allow viewers to skip them after they have played for at least five seconds. 

Non-skippable ads appear before the video, and viewers have to watch them before the desired video content begins. These typically last just under a few seconds. 

Long non-skippable ads last 30 seconds or longer. Bumper ads last up to six seconds. These ads usually get the message across quicker, and viewers also have to watch them before viewing their desired content. 

Finally, there are sponsor ads that give viewers a teaser of the product you’re advertising. 

How Much It Costs to Advertise on YouTube

Now that you know the different ways of using YouTube for business, we’ll address the actual costs and how much you should budget for your ads. The good news is you get to determine your daily budget for your YouTube ad campaign depending on your advertising budget. 

Naturally, the more liquid you are, the more money you can set aside for your YouTube ads and vice versa. But in general, the average business should start by committing $10 daily to running an advertising campaign on YouTube. And adjust the figure once you know how effective the ad campaign is performing. 

Be prepared to spend between $0.10 and $0.30 per view or click. The exact amount you pay will depend on factors such as the video quality, niche, and your campaign goals. 

In most cases, you’re likely going to pay on a cost-per-view basis. Each time someone views your ad, you pay for that view. That’s why you need to set a maximum amount you can afford to spend on the views, to avoid overspending. 


The going rate for YouTube ads is currently between $0.10 and $0.30. The YouTube ad pricing structure depends on the prospective customers’ actions. 

Does the viewer click or watch the entire ad? When someone clicks or views your ad, you must pay for that action. 

Your marketing budget will determine how much you set aside for your YouTube advertising campaign. However, you’re encouraged to start with a daily budget of at least $10 and adjust accordingly after monitoring your campaign performance.  

Generally, the exact amount you pay for the ad will depend on the video quality, your target audience, the type of ad, and, of course, your campaign goals. Whichever the case, it pays to hire a YouTube expert to run your campaign for optimal results.

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