With more than two billion active users each month, businesses using this site can successfully target large crowds through YouTube advertising.
Various advertising purposes are accomplished using YouTube ads such as TrueView, non-skippable, bumper, overlay and sponsored cards.
TrueView video ads are skippable, affordable, and are paid for only after 30 seconds of playtime is delivered, to the viewer.
These ads usually last for 15-20 seconds, and are guaranteed to be viewed by the audience and this leads to increased charges for advertisers.
Bumper ads are short non-skippable ads, lasting no longer than 6 seconds, which work best and are charged on CPM basis for brand promotion.
In addition to targeting, ad format and competition, you also have to consider the bidding strategy when it comes to youtube ads cost.
Bid on CPV and CPM in youtube auction system helps to keep the spending in control for the advertisers.
The clickable TrueView ads cost between $0.10-$0.30, while CPM range depending on targeting level is $2-$10.
To manage expenses, advertisers apply the concept of daily or campaign budgets that will guarantee the efficient delivery of ads to a target audience.
YouTube ad campaign results are accounted by the number of ads viewed, CTR, engagement and conversion levels to optimise further ROI.