YouTube

How Much Do YouTube Ads Cost in 2021?

Back to Articles

How Much Do YouTube Ads Cost in 2021?

You’ve probably heard about the YouTube spike of 2020 due to COVID lockdowns and quarantines, but did this spike affect advertising prices? Is advertising on YouTube still affordable in 2021? We are happy to report that advertising on YouTube in 2021 is very much still affordable for newer and smaller businesses. However, advertising on YouTube is only worth the cost if you do it right — if not, you’re just wasting money. We never want you to waste money, which is why we’re here to tell you everything you need to know about advertising on YouTube in 2021 and beyond. 

What You Need to Know About the Cost of Advertising on YouTube

While this may be a straightforward question, it doesn’t have a straightforward answer. The cost of YouTube ads in 2021 depends on a variety of factors such as ad format, watch time, targeting mechanisms, and campaign objectives. That being said, the average cost per click for YouTube ads in 2021 falls between $0.10 and $0.30. 

The cost of YouTube ads tends to vary due to the bidding mechanism used by the platform to select and place ads. Brands bid against each other to win the best placement. You can set your maximum bid ahead of time and let the system do all the work — all while being sure that you won’t end up spending more than you wanted. The good news is that YouTube won’t end up spending more than necessary for you to win the bid. 

In addition, there are different sizes and formats of YouTube ads to choose from. Naturally, the larger the ad, the more it’s going to cost you. There are also different watch time pricing options where you could end up paying more for someone watching 30 seconds of your ad versus just 15 seconds. Finally, you can expect to pay more money on YouTube ads if you’re trying to target a very competitive demographic that other brands are fighting for. 

What Are the Benefits of Advertising on YouTube and Is It Worth the Cost?

Although we cannot tell you exactly how much it will cost you to advertise on YouTube, we can tell you that it’s largely worth the cost if you do it right. Here are some of the benefits of advertising on YouTube that make it worth the cost:

  • YouTube offers a massive reach: YouTube boasts more than two billion users worldwide — making it one of the top three social media platforms along with Facebook and WhatsApp. These two billion users watch nearly five billion videos on a daily basis — topping a daily total of one billion hours. YouTube doesn’t just have the users, but it also has the engagement necessary to make your mark on this platform. 
  • YouTube brings in revenue: Users and engagement are great and all, but what you really need is a return on your advertising investment. The good news is that this is another area where YouTube really delivers — making almost $5 billion in net advertising revenues in 2019. The numbers for 2020 are most certainly higher due to increased engagement on the platform in the time of COVID quarantine. 
  • Video ads are more effective: Video ads on YouTube are more effective and engaging than your typical photo ads seen on other platforms. By appealing to your site through the use of bright colors and appealing to your hearing through the use of catchy music, you can get viewers to pay attention to your content instead of simply skipping or scrolling on by. 
  • YouTube offers powerful targeting mechanisms: Perhaps one of YouTube’s biggest strengths comes from its targeting capabilities. YouTube has a ton of information on its users that you can then use to reach the right people. For example, you can target people on YouTube through demographics, life events, affinities, keywords, topics, and placement. YouTube also gives you the option to retarget individuals who have interacted with your content or brand in the past. 
  • YouTube offers helpful insights: Another strength of YouTube relates to its data and insights. When you advertise with YouTube, you gain access to a whole host of information that you can then use to optimize your campaign and achieve better results. For example, you can track your impressions, views, view rate, cost per view, and earned actions. 

What Are the Different Advertising Formats on YouTube to Consider?

As you now know, YouTube advertising costs vary depending on the ad format. But what are the different ad formats available on YouTube? 

  • Skippable in-stream video ads: This is the most common and the most effective ad format that plays before or during a video with the option to skip after five seconds. You don’t pay for skipped ads. 
  • Non-skippable in-stream video ads: These ads play before or during a video but cannot be skipped. These ads are usually between 10-15 seconds long and you pay for each one. 
  • Display ads: These ads show up on the right-hand side-bar while a video is playing. 
  • Discovery ads: These ads place your content at the top of the search results list depending on certain keywords.
  • In-video overlay ads: These pop-up ads take up the lower 20% of a video while it’s playing and can be exited out. 

How to Launch a YouTube Advertising Campaign That’s Successful and Cost-Effective

Now it’s time to put all the pieces together and launch a YouTube advertising campaign that’s successful and cost-effective. Here are some tips and tricks you need to know:

  • Know your target audience and come up with a complete buyer persona that includes what they care about, what they dislike, what motivates them, etc. to better reach and relate to them. 
  • Create engaging content that presents value to the viewer. Your content needs to draw them in within the first few seconds to convince them to watch the entire ad and complete your call to action. 
  • Test your content before launching to determine how effective it is before you start spending money on it. 
  • Track your campaign throughout its lifetime to ensure that it’s on the right track and your money is being well-spent. Don’t be afraid to make changes along the way but also remain patient while waiting for results. 

Why Work With a YouTube Advertising Agency?

Conquering YouTube through video ads is definitely a challenge for brands that have only focused on image ads. While video ads present a unique challenge, they also present a unique opportunity that you can take advantage of. Perhaps one of the best ways to really take advantage of what video ads and YouTube specifically can offer is to work with a YouTube advertising agency

That being said, not all YouTube advertising agencies are created equal. If you’re investing in a partner to help grow your business, you need to go with the best. In this case, look no further than MuteSix. MuteSix is able to combine highly targeted audiences across the entire marketing funnel with optimized video content to reach the right users with the right content as they browse through YouTube. 

When you work with MuteSix, we take you through the entire YouTube advertising process from start to finish. We start off with a thorough audit of your brand and provide feedback on any existing video content. From there, we develop a creative strategy to help you meet your advertising objectives. After that, we move on to audience research and implementation to learn more about your audience and the best ways to reach them. Finally, we implement ad unit and bid strategy testing before optimizing and scaling for the best possible results. 

Sure, this all sounds nice but we understand that you’re really looking for results. Well, we definitely do that! In fact, our YouTube content received 362 million views in 2020 with more than one million purchases associated with them. Take our client Trophy Skin, for example. We were able to help them gain $548,000 in revenue, 2,781 orders, and a 2,438% spend increase as a result of our YouTube services. We did it for them and we can do it for you too! 

Final Thoughts on YouTube Advertising in 2021

As you can see, YouTube advertising in 2021 remains extremely cost-effective if you know how to maximize your investment. One of the best ways to get the most bang for your buck on YouTube is to work with a YouTube advertising agency like MuteSix. So before you dismiss the possibility of using this platform to grow your business as a result of perceived costs, reach out to us for a complimentary consultation so that we can show you all that we can do! 

Sources:

  1. https://www.statista.com/statistics/1106313/youtube-usage-increase-due-to-coronavirus-home-usa/
  2. https://smallbusiness.chron.com/examples-marketing-objectives-20231.html
  3. https://smallbusinessbc.ca/article/how-to-create-an-effective-video-ad-for-your-small-business/

Other Articles you may enjoy…