How Much Does It Cost to Advertise Youtube?

advertise youtube

How Much Does It Cost to Advertise Youtube?

Learn About How Much It Costs to Advertise on Youtube and to Create Great Campaigns.

The cost of advertising on YouTube can vary significantly depending on several factors, such as ad format, targeting options, and your campaign’s overall budget.

YouTube primarily uses a bidding system for its ads, so the price you pay is determined by the competition and the value you place on a specific audience.

Imagine an algorithm update hits your business hard, and visibility takes a nosedive. What do you do? 

Preferably, you will have already prepared for it in advance.

cmo vp sales youtube

Take a look at this story… 

The VP of Sales asked the CMO why sales leads were down and heard about YouTube Advertising.

The VP of Sales had been feeling increasingly anxious. For weeks, the leads from sales had been dropping, and he was struggling to understand why. He decided to ask his colleague, the CMO, for some advice. 

When they met in the office one afternoon, the VP asked how to improve sales leads. The CMO suggested they look into YouTube Advertising as an option; she said she had recently read about its success rate in a few other companies and thought it might be worth trying. 

The VP was intrigued by this idea and immediately met with their social media team to discuss further how best to go forward with YouTube Ads.

As they discussed different strategies and ideas, it became clear that this form of advertising would have huge potential for their company if executed correctly – potentially even more impactful than traditional methods like email campaigns or paid search ads! 

They quickly started setting up an initial campaign for YouTube Ads over the next few days. They soon saw positive results from customers who interacted with these ads and ended up visiting their website or making purchases directly afterward! 

How can I advertise on youtube with a higher ROI? After that let’s pull in Matrix Markteing Group to test and scale he YouTube ad camapign. They ways to advertise on youtube by Matrix are awesome and return on spend exceed our expectations.

Seeing this success first-hand made both the VP of Sales and CMO extremely happy – not only did it prove that investing in new forms of advertising can pay off, but it also gave them confidence that there are still ways to increase sales leads without relying solely on traditional marketing methods!

Here are the main ad formats available on YouTube:

advertising campaigns youtube
  1. Skippable In-Stream Ads: These ads play before, during, or after a video and can be skipped after 5 seconds. The cost for this format is typically based on a cost-per-view (CPV) model, with average costs ranging from $0.10 to $0.30 per view.
  2. Non-Skippable In-Stream Ads: These ads are placed before, during, or after a video but cannot be skipped. They typically last 15 to 20 seconds. These ads are often calculated on a cost-per-thousand-impressions (CPM) basis, with rates ranging from $15 to $30.
  3. Discovery Ads: These ads appear alongside YouTube search results or in the “Related Videos” section. They are charged on a cost-per-click (CPC) basis, with average costs ranging from $0.10 to $0.30 per click.
  4. Bumper Ads: Bumper ads are short, 6-second videos that play before a video. They are also charged on a CPM basis, with rates typically between $20 and $50.
  5. Masthead Ads: These premium ads appear at the top of the YouTube homepage for a full day. The cost for this format is typically negotiated directly with YouTube, and prices can range from $500,000 to over $1,000,000 for 24 hours of exposure.

It’s essential to remember that these are average costs and can vary depending on factors such as the targeting options you choose, the competition for your target audience, and the overall demand for ad space on YouTube.

You should always set a daily or total campaign budget that you’re comfortable with to control your ad spend.

How Do I set up an Advertising campaign on YouTube?

skippable In stream ads

Setting up an advertising campaign on YouTube is relatively straightforward. You’ll need a Google Ads account to manage your YouTube campaigns since YouTube is part of the Google ecosystem. Follow these steps to create your YouTube advertising campaign:

1. Create a Google Ads account:

If you don’t already have a Google Ads account, sign up at You’ll need a Google account to sign up.

2. Link your YouTube channel:

Link your YouTube channel to your Google Ads account to track ad performance and access more features. To do this, go to the “Linked Accounts” section in your Google Ads account and follow the instructions to link your YouTube channel.

3. Create a new campaign:

In your Google Ads account, click the “Campaigns” tab and click the Plus button to create a new campaign. Choose the goal for your campaign, such as “Sales,” “Leads,” or “Website traffic,” or select “Create a campaign without a goal’s guidance” if you prefer.

4. Choose the campaign type:

Select “Video” as the campaign type to create a YouTube advertising campaign.

5. Define your campaign settings:

Configure your campaign settings, such as the campaign name, budget, start and end dates, target audience, and more. You can also choose the ad format, such as skippable in-stream ads, non-skippable in-stream ads, discovery ads, or bumper ads.

6. Create an ad group:

An ad group contains one or more ads and a set of targeting criteria. Name your ad group, choose your targeting options (like demographics, interests, keywords, etc.), and set your bid strategy (CPV, CPM, or CPC).

7. Create your video ad:

Upload your video ad or select an existing video from your linked YouTube channel.

Fill in the necessary details, such as the final URL (where users will be directed after clicking on your ad), display URL, and ad name. For in-stream ads, you can also add a call-to-action and headline.

8. Review and submit:

Review your campaign and ad group settings, and ensure your video ad meets YouTube’s advertising policies. Once everything is in order, click “Save and continue” to submit your campaign for review.

Google will review your ad, which usually takes up to 24 hours. If your ad is approved, it will run according to your campaign settings.

Remember to monitor your campaign’s performance regularly and optimize it for the best results. You can adjust your targeting, bids, budget, and creative elements based on the data provided in your Google Ads account.

How Do I Measure the Success of YouTube Advertising?

digital marketing metrics

Measuring the success of your YouTube advertising campaign involves tracking key performance indicators (KPIs) and metrics that align with your campaign objectives. Here are some of the most important metrics to monitor:

Matrix Marketing Group is a digital marketing agency that helps businesses with various marketing services, including YouTube advertising. While I cannot provide specific information on their current offerings as my knowledge is up-to-date only until September 2021, I can give you a general idea of how a marketing agency like Matrix Marketing Group might assist with YouTube advertising:

  1. Strategy Development: Matrix Marketing Group can help you develop a comprehensive YouTube advertising strategy aligned with your business goals and objectives. This may include defining target audiences, setting KPIs, determining the appropriate ad formats, and creating a media plan.
  2. Creative Services: The agency can assist in creating compelling video ads that resonate with your target audience. They may offer scriptwriting, storyboarding, video production, and editing services to ensure your ads are engaging and meet YouTube’s advertising guidelines.
  3. Campaign Setup: Matrix Marketing Group can handle the technical aspects of setting up your YouTube advertising campaign in Google Ads. This includes creating campaigns, ad groups, targeting options, and uploading video ads.
  4. Optimization: Once your campaign is live, the digital marketing agency will monitor performance and make data-driven adjustments to targeting, bids, budget, and creative elements to optimize your campaign for better results. They may use A/B testing to determine the most effective ad variations and make strategic recommendations.
  5. Reporting and Analytics: Matrix Marketing Group can provide regular reports on your campaign’s performance, including key metrics like views, view rate, click-through rate, conversions, and return on ad spend. These insights can help you understand the effectiveness of your YouTube advertising efforts and inform future campaigns.
  6. Integration with Other Marketing Channels: The agency can help you integrate your YouTube advertising with other digital marketing channels, such as search, display, social media, and email marketing, to create a cohesive and effective overall marketing strategy.

I recommend visiting their website or contacting them directly to get the most accurate information about Matrix Marketing Group’s current offerings and how they can help your business with YouTube advertising.

The number of views your ad receives indicates its reach, while the view rate (views divided by impressions) shows how engaging your ad is.

A high view rate suggests your ad resonates with your target audience.

  1. Click-through Rate (CTR): CTR is the percentage of clicks on your ad relative to the number of impressions. A higher CTR indicates that your ad is compelling and successfully driving users to take action.
  2. Cost per View (CPV), Cost per Click (CPC), or Cost per Thousand Impressions (CPM): Depending on your ad format, you may be charged based on views, clicks, or impressions. Monitoring these costs helps you understand the efficiency of your campaign and whether you need to optimize your targeting or creative elements.
  3. Watch Time: Watch time is the total time viewers spend watching your ad. A higher watch time suggests your ad engages and captures viewers’ attention.
  4. Video Engagement Metrics: YouTube provides additional metrics to gauge user engagement, such as likes, dislikes, comments, and shares. These metrics can help you understand how well your ad resonates with viewers and fosters a conversation around your brand.
  5. Conversions and Conversion Rate: If your campaign aims to drive specific actions, such as sales or sign-ups, tracking conversions is crucial. The conversion rate (conversions divided by clicks) helps you assess the effectiveness of your ad in driving the desired outcomes.
  6. Return on Ad Spend (ROAS): ROAS is the revenue your ad campaign generates relative to its cost. This metric helps you determine the profitability of your YouTube advertising efforts and whether your investment is paying off.

To measure these metrics, use the reporting tools available in your Google account. Additionally, you can link your Google Ads account with Google Analytics to gain deeper insights into user behavior after clicking on your ads.

This can help you understand the impact of your YouTube advertising on overall website engagement, conversions, and other important KPIs.

Remember that the success of your YouTube advertising campaign depends on your specific goals and objectives. Monitor your campaign’s performance regularly, and make data-driven adjustments to your targeting, bids, budget, and creative elements to optimize for the best results.

How Does Matrix Marketing Group Help with YouTube Advertising?

Matrix Marketing Group is a digital marketing agency that helps businesses with various marketing services, including YouTube advertising.

I can explain how a marketing agency like Matrix Marketing Group might assist with YouTube advertising.

Visit their website or contact them directly to get the most accurate information about Matrix Marketing Group’s current offerings and how they can help your business with YouTube advertising.


A YouTube advertising campaign can be a powerful way to reach new customers and build your brand’s visibility, but it requires thoughtful planning and ongoing optimization. 

Working with an experienced agency like Matrix Marketing Group can help you maximize the value of your YouTube ad spend by providing expertise on campaign setup, audience targeting, copywriting, optimization, and integration with other marketing channels. 

Taking advantage of their services will give you the best chance of achieving the results you want from your YouTube advertising campaigns.

General FAQs

What are the benefits of YouTube advertising?

youtube discovery ads

YouTube advertising can help you reach a large and diverse audience, build brand awareness and visibility, target people with specific interests or demographics, increase website traffic and conversions, and more.

How effective is YouTube advertising?

youtube bumper ads

YouTube advertising can be highly effective when done correctly. By working with experienced agencies like Matrix Marketing Group, you can maximize your ad spend by using their expertise in campaign setup, audience targeting, copywriting, optimization, and integration with other marketing channels.

What results can I expect from a YouTube advertising campaign?

youtube ads

Results will vary depending on each campaign’s goals and budget. However, by effectively setting up campaigns and ongoing optimization efforts with an agency like Matrix Marketing Group, you can get the most out of your YouTube ads. This could include driving traffic to your website or social media pages, generating leads or sales conversions, increasing brand recognition and visibility among target audiences, etc.

Is it worth investing in YouTube advertising?

mastheads ads youtube

Yes! Investing in YouTube advertising can be well worth the effort if done properly. When managed by an experienced agency like Matrix Marketing Group which specializes in setting up campaigns and optimizing them for maximum effectiveness over time, investing in YouTube ads will surely provide a good return on investment for your business.

Scroll to Top