• Video marketing
  • YouTube

The cost of Youtube-marketing – what are you paying for?

How much does it cost to advertise on YouTube? The price of video advertising especially depends on your audience and size and how much you want your ads to show. For example, if you want to target your promotional videos only to visitors to your site, your budget may be a few dozen or hundreds […]

Lauri Karvonen

How much does it cost to advertise on YouTube? The price of video advertising especially depends on your audience and size and how much you want your ads to show. For example, if you want to target your promotional videos only to visitors to your site, your budget may be a few dozen or hundreds a month. If you want to target your video to a larger audience, you can budget anything from hundreds to tens of thousands of euros (depending on the size of your audience).

The pricing of YouTube advertising is based on video views. In Finland, the price usually varies between EUR 0.01 and EUR 0.05 per view. For example, for remarketing audiences, you may have to pay more for visibility than this.

The price for 10.000 views is typically between 100 and 500 euros.

Because more targeted audiences are the most competitive, they have to and should be paid more than wider lower-performing audiences.

How do you actually pay for your YouTube ad?

You pay only when a viewer watches 30 seconds of your video (or the entire video if it lasts less than 30 seconds) or when the viewer clicks on a link to the website.

So, in YouTube advertising you do not pay anything when your promotional video shows an (impression). You only pay when your video is (viewed,) as defined above.

How much do companies spend on YouTube advertising?

For example, winter tyres sold in Finland will be examined.

In Finland, – Nokian Hakkapeliitta 9 about 106 thousand views and Michelin X-Ice North 4 tans shown in Finland videos has about 617k views. For Continental IceContact 2, it appears that the company has only invested in Russian marketing on YouTube, as the latest YouTube ads targeting Finland are over five years ago.

Depending on ad allocations and price offers, it can be assumed that approximately 1.500 –2.000 euros have been spent on the distribution of Nokian Hakkapeliitta 9 and about 9.000 – 12.000 euros have been spent to display Michelin X-Ice North 4’s video. Relative to the costs of the video production, the distribution of videos in Finland is very moderately used in euros. If you are spending money on producing video content, be sure to budget money for video distribution as well.

What are the result of spending money on YouTube advertising?

Let’s say you’ve done a minute long. customer reference video. You show the video as paid remarketing to your site visitors and to the in-market audience “interested in marketing services”. The reference video in this example has received about 10.000 views and has been marketed for about 350 euros. In this example, the views are roughly halved between the remarketing audience and the cold audience. In turn, the costs have been distributed so that 75% of the costs have been spent on the remarketing audience and 25% on the cold audience.

The average price for one view was EUR 0.035. Was the advertising successful? Was it worth spending money on video advertising? Does it make sense to pay more than twice as much for a remarketing audience in relation to a cold audience?

The campaign for the example resulted in 108 migrations to websites and five online magazine downloads. In addition, the remarketing resulted in one impression-assisted bid, i.e. the customer has viewed the video and then sent a request for quotation. In this campaign, video advertising was not the main source of leads, but supported other marketing channels. Researchers who take advantage of YouTube video ads and search network advertising at the same time have been shown to have 3% higher conversion rates than advertisers who take advantage of search network advertising only. Properly implemented video advertising pays off.

View video advertising results

It is not a good idea to measure the video advertising results in the same way as other channels. Video advertising supports increased awareness and helps strengthen the purchasing decision. Do not expect affordable traffic to the website, because while videos can also provide traffic to the websites, this is not the main goal of video advertising.

The most sensible thing about video advertising is to compare the viewing percentages of different videos and audience targets (how long the video is viewed) – and focus on the most functional audience targets. In addition, it is a good idea to monitor the size of the target audience and, for example, the frequency of impressions. For conversions, I recommend watching impression-assisted conversions in particular (the person who has seen the ad and later moved to the pages to do the desired action).

With YouTube advertising, you can accurately measure how many times your video has been shown to different people, track how long your different videos are viewed, and how long your different audiences watch videos.

How can YouTube advertising benefit you?

The clear strengths of YouTube advertising are:

  • Reach
  • Targeting
  • Measurability
  • The vibe

Since you can target YouTube advertising accurately, you can start advertising with a very reasonable media budget. If you are interested in the results of different types of video ads, I recommend that you check out more on Rulla Media’s website.

Concluding remarks

With video advertising, you can effectively capture your customer’s attention and it supports other marketing efforts well. As Jussi Riekki of Roller Media, says: “Video sells opportunities, openings, diversions, fast feeds. Even the best video rarely makes a profit on its own –other business features need to be in order as well .” Therefore, even if you get excited about any channel (be it YouTube, Twitch or Instagram), the most important thing is that the basics on your website are in order. Therefore, I recommend that you also read our blog post, which explains the importance of content marketing for your entire site.

If you want to hear about video advertising opportunities for your business needs, please contact us! We will honestly tell you what kind of targeting and budget makes sense to start implementing video advertising.

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