YouTube Advertising Costs Explained

YouTube is a rare platform where you can connect directly with your audience. All you need to do is post videos, promote youtube videos, and they will do the rest for you, bringing visitors from around the world to your channel. However, like most things with the Internet (and life as a whole), nothing good comes easy – as with all content on YouTube, you have to compete with other videos for attention, and the only way to do that is by spending money on advertising.

YouTube Advertising Costs

There are two main types of advertising on YouTube: cost-per-thousand-impressions (CPM) and cost-per-click (CPC). With CPM, you pay each time your ad is shown 1,000 times. With CPC, you pay each time someone clicks on your ad. YouTube advertising costs depend on a few factors, such as your target audience, how competitive your industry is, and where you are geographical.

For example, suppose you target people in the United States, Canada, or the United Kingdom. In that case, your CPC rate will be lower than if you were targeting people in countries like Brazil or India. Similarly, suppose you target people in competitive industries like fashion, beauty, or fitness. In that case, it will cost more to get your ad shown through a youtube paid promotion compared to someone targeting people in a less competitive industry.

Finally, the location of your viewers also affects how much you pay per click on YouTube ads. So, for example, if you are targeting people in the United States and someone in Brazil clicks on your ad, you will end up paying more for that click than if you were targeting people in the United States.

How Much Does it Cost to Put an Ad on YouTube?

The cost of your YouTube ad will depend on how much you are willing to pay for each view. The average CPC rates for channels in the United States range from $0.75 to $1.50, with some businesses paying up to $10 per click.

If you look at CPMs, there is a vast range depending on where you are. In the United States, CPMs range from $5 to $20, while in countries like India, they can be as low as $0.50. This means that if you want your ad to be shown to 1,000 people, it will cost anywhere from $5 to $200.

YouTube Budgeting – How Much Should you spend on YouTube Ads? There is no one-size-fits-all answer when it comes to budgeting for YouTube advertising. The amount you should spend on ads will vary depending on your goals, the competitiveness of your industry, and where your target audience is located.

YouTube Average Cost Per View (CPV) – Average cost per view (CPV) is an advertiser-focused metric that shows advertisers’ average amount for 1,000 video views. It’s different from CPM because it doesn’t provide information about how many people actually click on an ad or how long they stay on the page.

YouTube Average CPM – The average cost per mille (CPM), also known as cost per thousand impressions (CPT), is a measure of how much it costs to display an ad 1,000 times. It’s often used as a proxy for how effective an ad is at reaching people. This metric can be helpful when comparing the relative effectiveness of different ad campaigns. It’s also beneficial when benchmarking the performance of an ad network or publisher compared to competitors.

YouTube Video Ad Formats and Costs

YouTube has five types of ads that you can choose to display with your video.

Skippable TrueView Ads: These ads play before, during, or after a video. They can be skipped after 5 seconds, and you only pay if the ad is watched for at least 30 seconds or until the end.

Non-skippable YouTube Ads: These ads play before, during, or after a video. They can’t be skipped and will stop playing when your viewers click away.

YouTube Bumper Ads: These are short, shippable ads that play before your video. Bumper ads can be as short as 6 seconds and as long as 10 seconds.

Discovery Ads: These ads show up in the “recommended videos ” area on the right-hand side of the screen.

Out stream Ads – These ads play in-between videos on YouTube or other websites.

YouTube Campaign Costs

Your cost per view (CPV) is different than your average CPM, as it takes into account only those viewers who watched at least 30 seconds of your video. However, you can also pay for 100% completion rates to guarantee that every person who watches the first 30 seconds of the ad will be counted as a view.

When you’re setting up your YouTube ad campaign, you’ll need to decide how much you want to spend on each view. You can set a daily budget or a total budget for the entire campaign. You’ll also need to decide whether you want to pay for clicks (CPC) or impressions (CPM). With CPC, you’ll only pay when someone clicks on your ad. With CPM, you’ll pay for every 1,000 impressions of your ad.

When it comes to YouTube advertising, it’s important to remember that you get what you pay for. If you’re targeting people in a high-cost country like the United States, you’ll end up paying more per view than people in a low-cost country like India. In the same way, the more you’re willing to pay for an ad, the more specific your target audience can be.

YouTube CPM

Rates can vary greatly depending on several factors, including location, time of year, and the type of ad. In the United States, CPM rates range from $7 to $30, while in countries like India, they can be as low as $0.50. This means that if you want your ad to be shown to 1,000 people in the United States, you’ll end up paying between $7 and $30. On the other hand, if you want your ad to be shown to 1,000 people in India, you’ll only pay between $0.50 and $5.00.

It’s essential to keep in mind that these rates are just averages and that the actual cost of a video ad will vary depending on several factors. For example, the CPM rate for an ad shown during a live stream is likely to be higher than one shown between pre-recorded videos, and the average is expected to be higher throughout summer than winter.

Focus on Cost per Lead, Not Cost Per View

Don’t focus on the cost-per-view (CPV) metric when starting a YouTube advertising campaign. This metric measures how much you’re spending to get someone to watch your ad, and not everyone who watches your ad will necessarily be interested in what you’re selling. Instead, please focus on the cost-per-lead (CPL), which is the metric used to measure how much you’re spending to get someone to submit their information about your product, service, or business.


This article is presented to explain the costs of advertising on YouTube. Startups and businesses looking at video content as an aid to their marketing strategy will want to avoid spending too much money without knowing what will happen after they’ve spent those dollars. These guidelines should help you determine if your desired results can be achieved with that set budget.