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What is YouTube Advertising?

November 12, 2021
May 1, 2023

What is YouTube Advertising?

YouTube advertising comes in many forms. The most popular being preroll skippable advertisements at the beginning of a video. YouTube advertising is sold in clicks and offers a wide variety of formats and sizes for advertisers on the platform.

Type of YouTube Ads

  • TrueView video ads or skippable video ads
  • Preroll or non-skippable ads
  • Bumper Ads
  • Display Ads
  • Overlay Ads
  • Sponsored Ads
  • Masthead Format

How much does YouTube Advertising cost?

The average video ad costs between $.10 and $.30 per view. Factors such as targeting, contents of the video, and video quality can drastically affect this metric.

YouTube advertising is bought in views, with each view having a unique bid. A simple way to understand this is if you would pay $.20 per view, you would pay $2,000 for every 10,000 people that see your ad.

As with all Google Ads (Spoiler: YouTube is owned by Google) placement for your ad is bought via bidding. There is not a set price for YouTube ads. You begin with setting a daily budget. YouTube recommends a minimum of $10/day, however, we at Red Shark Digital recommend $30/day.

What Counts as a View on YouTube

In advertising, a view is registered when a user watches your video for 30 seconds or longer unless the video is shorter and they watch the entire duration.

This means that for each view, you are willing to pay your bid figure.

Is YouTube Advertising Effective?

YouTube advertising is a form of display advertising. Display advertising should always be seen as a top of the funnel tactic with its main goal to be brand awareness.

YouTube Advertising Raleigh

It is rare that users convert into customers from a single ad view, however, it is common for users to be served an ad on YouTube, and then search for that product

Are YouTube ads Targeted?

Yes, extremely, As thousands of users watch videos, YouTube begins letting companies bid on the spaces. By setting presets ahead of time, each company lets YouTube know what they’re willing to pay per user per view. Parameters able to be targeted with YouTube include age, geography, recent google searches, channels they are subscribed to and many more.

Red Shark Digital is a leading advertising and marketing agency in Eastern NC. Follow our YouTube channel to view our latest videos and contact us to get started with YouTube Advertising!

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