Why Should You Use Youtube to Promote Your Business?
Are you prepared for some astounding stats, then? According to YouTube, there are over 2 billion monthly active users in over 100 countries and 80 different languages. Just after Facebook, YouTube is the second-most popular social media platform globally. There are a startling number of users checking in to YouTube every single day, so it makes sense that, according to 2022 research by Social Media Examiner, over 67% of polled marketers want to increase their use of the platform.
You can enhance brand loyalty, boost sales, and influence consumer decisions by using YouTube to promote your business. But the price of YouTube advertising is the one item that can make you apprehensive. How do you pay for YouTube advertising? What exactly is “bidding”? How much does YouTube advertising cost? Anyone would be overwhelmed by it. As always, Foundr has all the information you want to begin running YouTube advertisements.
What’s the Process for YouTube Advertising?
The main benefit of YouTube is that it is frequently used by users to find amusement and information. It has a purpose, in other words.
YouTube takes the following factors into account when determining which advertisements to show:
Google’s past searches
- Associated videos If a user is connected to their account
- Google Ad settings will provide information such as the viewer’s age, location, and more.
- YouTube uses this data to identify user intent and show them adverts that are relevant to their interests. You pay YouTube to show your advertisement to the appropriate person at the right moment to promote your business.
How Much Are YouTube Advertisements?
We frequently receive this query. As with any advertising, it may be quite challenging to estimate costs precisely. Influencer Marketing Hub claims that the cost of YouTube advertising may range from INR 8.2 to INR 24.6 per view and that it costs, on average, INR 1,64,000 to reach 1,00,000 subscribers. It counts as a view when a viewer watches your video for 30 seconds or interacts with it by clicking on it. If your video is under 30 seconds long, if the viewer watches the entire thing, it counts as a view.
These factors influence the actual cost of launching a YouTube advertising campaign:
- Targeting Bidding
- Advertising forms
Your first consideration when running YouTube ads should not just be how much they cost, but also what you stand to gain from them. You must continuously monitor and assess your campaigns to make sure that your YouTube advertising and ROAS goals are being reached.
Describe ROAS
Return on advertising spend (ROAS) is a measure that assesses the efficiency and productivity of your advertising campaign. By measuring your ROAS, you may identify the most effective advertising tactics and incorporate them into your subsequent campaigns.
Your ROAS may be determined using the following formula: ROAS = Revenue / Cost. For instance, if you spend $1000 per week on YouTube advertisements and make $1500 per week from the advertisements: INR 123000/INR 82000= INR 1.5 ROAS. According to WebFX, most businesses strive for a 4:1 ratio— INR 328 in income to INR 82 in advertising costs—when determining what constitutes a successful ROAS. However, the typical ROAS is 2:1— INR 164 in income for every INR 82 spent on advertising.
How Much Does a YouTube Ad Lasting 30 Seconds Cost?
The price of a 30-second YouTube ad can change based on a variety of variables, including the ad’s location, target demographic, and format. A 30-second YouTube advertisement often costs INR 820 to INR 4,100 or more per thousand views (CPM).
It’s crucial to keep in mind that this is simply an estimate and that final expenses can differ. To receive a more precise estimate for your particular ad campaign, I would advise getting in touch with YouTube directly or speaking with a media purchasing firm.
How Are YouTube Ads Priced?
A cost-per-click and cost-per-view pricing structure is used by YouTube, which is comparable to that of its parent firm, Google. Your YouTube advertising rates will rely on user behavior under this pricing scheme.
For instance, you’ll be paid if someone clicks on your advertisement or watches the full thing. The kind of ad you make will determine whether you pay for views or clicks. So, how much does it cost for someone to click on or view your YouTube ad? Learn more in the next section!
How Are YouTube Ad Prices Determined?
You will be charged by YouTube based on the ad unit you select.
TrueView in-stream video adverts only charge you if a viewer views your video for at least 30 seconds, sees it in its entirety (if it is less than 30 seconds), or engages with it in some other way. You must pay based on whatever occurrence comes first.
When a user chooses to watch your video by clicking the thumbnail preview shown next to related YouTube videos, as part of a YouTube search result, or on the YouTube mobile homepage, TrueView discovery advertisements charge you.
Your bidding choice is the next factor that affects the price of YouTube advertisements. The cost-per-view (CPV) bid number you provide tells Google how much you’re willing to spend for each view or engagement. You will only be charged the absolute minimum required to have your advertisement shown above that of a rival.
Consider the scenario when your maximum CPV bid is 35 cents and the bid of a rival is just 25 cents. Your real CPV will be 26 cents to have your advertisement shown above theirs. Thus, your advertisement is charged 26 cents for each view.
Are You Prepared to Launch YouTube Ads?
The beauty of YouTube is that you have the freedom to decide how much money you’re prepared to spend on it, even though budgeting and paying for a new advertising outlet may first appear challenging.
You may determine how much it will cost to promote on YouTube by determining which ad style is most effective for you, tailoring your targeting, and improving your campaign through bidding. Additionally, YouTube looks to be the ideal trial ground for advertising and promoting your business with over 2 billion monthly active users.