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Contributed by Jason Alleger

YouTube is the second-largest search engine in the world, trailing only Google. There are over two billion YouTube videos streamed every day, and advertisers want a piece of this viewership pie.

So how much does it cost to run an ad on YouTube?

YouTube advertisers pay per view of their ad, with an average cost-per-view ranging between $.10 – $.30. The views also count toward your overall YouTube views.

On YouTube there are four standard types of ad formats:

  • In-search – an ad shows up above the YouTube search results.
  • In-slate – an ad shows up in the suggested videos after your video ended.
  • In-display – an ad shows up on the suggested videos beside the video you are watching.
  • In-stream – an ad plays before you can watch your video.

The pricing varies slightly per ad unit, with in-display ads ranging towards the higher end ($.30) and in-search toward the lower end ($.10).

Advertisers can target viewers by age, gender, location or by what types of videos they like to watch on YouTube. Generally, advertisers pay incrementally more for focused target audiences.

For example, if the Utah Department of Transportation (UDOT) wanted Utahns to learn how to drive a new type of intersection in Salt Lake City, it would only want to target men and women 16+ years old within a 10-mile radius of Salt Lake City. It would probably select more in-stream video ad units so the locals could watch how to drive the intersection, as well as in-search for anyone searching for driving tips in the area. At an average cost-per-view of $.20, UDOT would pay around $2,000 to educate 10,000 people how to drive the intersection.

Overall, YouTube ads are an excellent means of boosting your web presence at an affordable rate. For most ad units, potential customers actually CHOOSE to watch your advertisement. Also, the overall boost in views gives more credibility to your company and gives it a better chance of showing up organically in YouTube or other search engines.

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20 Comments

  • Mrs H 3 months ago Reply

    Great post! I finally understood how it works. Thanks a lot.

    • birddog 28 weeks ago Reply

      Thanks for sharing your time and information. You went out of your way thereby becoming a giver, something I expect is not a “new thing” for you! :)

    • Zelda 21 weeks ago Reply

      So how do you get it on your vid?
      And how do you get paid?

  • Jason Alleger
    Jason Alleger 3 months ago Reply

    Be sure to check out my other article on how much ads on Google cost:
    http://ppbh.com/how-much-do-ads-on-google-cost/

  • Varun Garg 3 months ago Reply

    Thanks for the great info. Was looking all the information in a refined way for a college project. Thanks a lot for such refined and great information.

  • Kevin 2 months ago Reply

    Thanks. Why doesn’t Google explain it this clearly?

  • Jawanza 2 months ago Reply

    Thank for the info, I have been looking everywhere for this info. Google wants you to jump through to many hoops for this same info. Thanks again!!

    • Rayann 2 months ago Reply

      As Chalrie Sheen says, this article is “WINNING!”

  • Tom Sims 2 months ago Reply

    Hi Jason,

    This is great information, I’ve been searching all over for this type of data and you have it here in one easy to read blog. I noticed the post date is Aug 2012, is the pricing data still valid today ?

    Thanks

    Tom

    • Jason Alleger
      Jason Alleger 2 months ago Reply

      Tom,

      Great question – I have actually seen prices drop slightly since this post was written. The average cost-per-view is closer to $.18 instead of $.20.

      This could be caused by a variety of factors, such as more content being available every day (more videos means more inventory) or YouTube’s targeting improving (better targeting means more relevant ads).

      • Tom Sims 2 months ago Reply

        Thanks Jason, I really appreciate your quick response !

  • tim 2 months ago Reply

    How much does the video uploader get from those ads?
    so if someone put ads (cpv $0.10) on my video, do I get a share of that $0.10?

    • Jason Alleger
      Jason Alleger 2 months ago Reply

      Tim,

      If you are a content creator on YouTube, you can monetize your ad through Google’s AdSense program. You would make 68% of the revenue from that ad. So at a $.10 CPV, you would make $.068 – or 6.8 cents. (http://support.google.com/adsense/bin/answer.py?hl=en&answer=180195)

      • Lewis 20 weeks ago Reply

        A Youtuber gets around $2.5 per 1000 views on their video.

  • Aryana 2 months ago Reply

    I’m not quite completely understanding how you’re charging. Can you please give me a hint or break down the process for me?

  • Faisy 2 months ago Reply

    Thanks for such detailed overview about the YouTube ads.

  • Mark F 29 weeks ago Reply

    Thank you, I have spent hours searching for this info. i knew i was onto something when you answered the $ question in the first paragraph.

  • I don’t even know how I finished up right here,
    but I assumed this put up was great. I do not recognize who you’re but definitely you’re going to a famous blogger if you happen to aren’t already.
    Cheers!

  • Jeannie 19 weeks ago Reply

    Thanks for invaluable info in this post! I’m doing research for a marketing plan, and this info is difficult to locate.

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