As with all forms of digital advertising, How much does it cost to have a YouTube ad on bidding? You set your maximum bid for either a click or a view, which is how you’ll pay for the ad space. You can choose between a cost-per-view (CPV) or a cost-per-thousand-impression (CPM) pricing model. The option you select depends on your campaign subtype and ad goal. If generating brand awareness is your goal, you’ll use CPV; however, if driving website traffic is your aim, you’ll opt for CPC.

The upfront costs associated with producing a YouTube video ad can drive up the cost of your ads, but there are ways to decrease these costs. For example, many marketing companies offer a service where they take care of the full video production process for you, decreasing your upfront costs.

Calculating the Cost of YouTube Ads

The type of ad you create also impacts the price of your ads. For example, in-stream videos, which are played on the YouTube homepage and related videos, tend to have higher prices than out-stream video ads, which appear as thumbnails next to search results or in the YouTube mobile app.

As with all types of online marketing, it’s best to track and optimize your campaigns at regular intervals. This way, you can get a better idea of what works for your specific goals and adjust your bid strategy accordingly. This can help you save money on your YouTube ads and ultimately achieve a greater return on investment.