YouTube Ad Pricing
How is YouTube Ad Pricing Determined? CPV and Budget Optimization Guide
The answer to the question "What does it cost to advertise on YouTube?" is much more flexible and advantageous than other platforms. YouTube ad prices are generally calculated based on Cost Per View (CPV). That is, you pay when a user decides to watch your video or interacts with the ad, not just when it is shown.
In this guide, we explain the factors affecting YouTube Ad Pricing and how to lower your costs to ensure maximum return.
YouTube Cost Model: When Do You Pay?
In YouTube's most popular model, TrueView, one of the following conditions must occur for you to pay:
-
If the user watches your ad for at least 30 seconds (or the whole video if it's shorter than 30 seconds).
-
If the user clicks on your ad (Visiting the website, clicking a card, etc.).
If the user presses the "Skip Ad" button at the 5th second, you pay absolutely nothing. This means free exposure for brand awareness.
4 Key Factors Affecting Prices (CPV)
The amount you pay per view (usually in the cents range) depends on these variables:
-
Audience Competition: If you advertise to a popular audience that everyone targets (e.g., Finance, Real Estate), the CPV may be higher.
-
Ad Quality: If users watch your ad without skipping, YouTube considers your ad high quality and rewards you with lower costs.
-
Ad Format: Non-skippable 15-second ads (which work on CPM - Cost Per Mille) are priced differently than skippable ads.
-
Placement: Showing your ad on popular and high-quality channels can affect the cost.
Low Cost, High Impact with Inside Media
The way to protect the budget in YouTube ads is to capture the viewer's interest.
At Inside Media, we optimize "Interest Level" to lower your ad costs. We edit the first 5 seconds of the ad so impressively that the viewer doesn't want to skip it. As the view rate increases, YouTube algorithms lower your CPV costs. Additionally, by continuously filtering out incorrect placements (e.g., kids' videos), we ensure your budget is spent only on potential customers.
Manage Your Budget Wisely
YouTube allows you to get much more targeted results with much lower budgets compared to television commercials. No matter your budget, request budget analysis from Inside Media experts to make the most efficient planning and optimize your costs.