Advertising has become a mainstay of YouTube, with ad revenue reaching nearly $5 billion in the US alone in 2019. Whether through a pop-up banner or as an (un)skippable video at any point throughout the video content consumers are familiar with their presence. As we understand that these are tools used to sell us goods & services, this begs the question how much does YouTube advertising cost?

Length of Advertisements: why does this matter?

Ever since the launch of the first ad concepts on YouTube back in August 2006, the ad landscape on YouTube has never stayed the same for too long. We’ve had pop out banners at the bottom of our video content, bumper YouTube ads which we can skip at the beginning, in-stream YouTube ads, as well as some YouTube adverts we can’t even skip! This variety muddies the waters for viewers on tracking how these ads embed themselves on the content they are viewing. However, it is very simple when breaking down the YouTube advertising cost. Those first painstaking 5 seconds that feel like an eternity cost the advertiser … nothing. Moreover, even on longer adverts the first 29 seconds are free. If someone clicks through on the advert this will cost the advertiser, but only pennies per click. Although for a consumer this might rub you the wrong way, for those creating the adverts this is their golden opportunity to draw in their target group while not having to pay for exposure that leads nowhere. As it takes 6 seconds to either capture or completely lose your audience, it is crucial to maximise your appeal within this short space of time.

Who can advertise on YouTube? Is there an economic barrier?

When watching television, depending on what time of the day you may see adverts popping up that don’t seem to be from brands familiar to you. It’s a well-known fact that adverts on TV still cost advertisers an arm and a leg when using television which has led to organisations with smaller budgets using YouTube ad content. This is also not to say that big media giants haven’t latched onto this and made their own campaigns on YouTube, however YouTube is a platform where a little can go a long way.

How are these adverts targeted in order to maximise ROI?

YouTube now has a model of pay to play with advertising. Matched with lower costs of advertising on the platform, many more businesses are realising the value that advertising on YouTube has. As many consumers buy content based on their viewing experience make sure you target these groups in order to maximise your Return on Investment (ROI). Platforms like YouTube therefore, give you power to reach people who have a strong affinity to your product and place an ad which is more likely to return high engagement.

As a result, we can see that advertising on YouTube is accessible for brands no matter the size as buying into advertising is cheap, especially when compared to other platforms like Facebook. So have you considered advertising on YouTube before and if not, does this make you change your outlook knowing the potential reach with the relative low cost?

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