YouTube is unarguably the very best video social media platform on the World Wide Web. And, considering the current popularity of video content above all other kinds of content, YouTube is an advertising and marketing goldmine if one plays their cards right. In fact, despite YouTube being a free platform, many YouTubers are actually making a decent income by monetizing their channels via ads – a lot like a blogger or website owner might. And advertisers in India (as well as the rest of the world) currently find advertising on YouTube remarkably cost-effective thanks to the platform’s popularity and reach.
A Brief Explanation of Monetizing YouTube and Advertising on YouTube
Now, there are two sides to monetizing YouTube. Both sides require you to create a YouTube Channel first and then upload videos on your Channel. Then, one side is where you monetize your video views on YouTube (where YouTube pays you for every 1000 views of your video). One can also monetize their YouTube Channel by signing up to being a YouTube Ads Partner in order to display ads on their videos.
The other side requires you to sign up for AdWords and then link your AdWords account to your YouTube account. This way, you can now display your ads on YouTube, thereby actively marketing your brand and business on YouTube.
These are the two main ways you can monetize your YouTube Channel. However, for this article, we’ll be focusing mainly on the advertising aspect of YouTube (although the YouTube monetization rates for video views are also considered at the end of this article).
The Major Factors Influencing YouTube Advertising Costs
Your ad customizations and specifications are, predictably, going to influence the cost of the ads on YouTube videos:
Your YouTube Ad Format:
The format of your YouTube ad will determine the cost of your ad: In-search ads are ads that show up at the top of YouTube search results. In-slate ads are ads that are displayed on the right side-bar in your suggested videos list (i.e., the list of videos suggested to you after you’ve finished watching a video). In-stream ads are the most common type of ad format used on YouTube: It’s the ad shown on your video before the actual video starts streaming. And finally, in-display ads are the ads you see beside the video you are playing – i.e., the ad displayed on the right side-bar of the YouTube window atop the list of suggested videos.
Your YouTube Ad Type:
The type of YouTube ad you display is also a factor on the price of your ad. For instance, the banner ad displayed on YouTube’s homepage is pretty expensive compared to other ad types. Then there are the in-stream format ads, which are of two types: Skip-able and non-skip-able ads. The skip-able ads are the ads a user can skip after around 5 seconds of watching the ad. While the non-skip-able ads are ads that a user must watch before that can get to watch the actual video. Predictably, the cost of displaying non skip-able ads is more than displaying skip-able ads. (And on the other side, the video uploader or channel owner earns more with non-skip-able ads than with skip-able ads as well.) Then, there are the ads that are simply displayed as links at the bottom or top of a video while it is playing, and these are cheaper overall. However, as they can be closed by the user any time, the lower costs of such ads is expected.
Your Daily YouTube Ad Budget:
What daily budget you want to allot to your YouTube ads is up to you. However, predictably, your prescribed daily budget will duly influence the cost and returns of your YouTube ad.
The US Dollar to Indian Rupee Conversion Rate (An additional YouTube ad price influencer for Indians):
The rates of YouTube ads, as well as the monetization rates of YouTube videos, will depend on the US Dollar ($) to Indian Rupee (INR) conversion rate at the time.
Your YouTube Ad Quality:
The quality of your video ad is a prime factor in your ad costs. There are dozens of video ads out there now, so it’s only natural that video ad quality has also improved by great standards. Hence, if your video ad quality is high, it will automatically rank higher and get you better views for your budget. Whereas, if your video quality is poor, even a high budget could ruin your ad goals.
The Range of YouTube Ad Rates and Monetization Rates in India
The minimum budget for YouTube ads can be specified as per the advertiser’s discretion. However, on average, the typical cost rates per view or click on YouTube right now ranges from around Rs.0.70 to Rs.17. Hence, a viewing goal of 10,000 views for a video ad will cost a budget ranging from around Rs.7000 to Rs.1,70,000, depending on the quality and popularity of the video.
As for monetizing YouTube using one’s own YouTube channel, the monetization range is around Rs.199 to Rs.465 per 1000 video views. As for displaying ads on your YouTube videos and monetizing your channel through AdWords, you are only eligible for an AdWords account for your YouTube Channel if you have at least one video with 5000 views. Plus, any ads that are displayed with or on your videos have to be approved by both sides of the advertising table.
The rates of advertising on YouTube has risen and fallen over the years. However, with the current uplift in the interest in video content, the cost of advertising on YouTube has relatively increased. But as its returns are massive, the consequent CPM and CPC are greatly reduced, and thus make the budget and expenses incurred well-worth the cost. But whether or not advertising on YouTube is beneficial for a brand will also depend on how “viral” that video goes and what the quality of the video is. On that same vein, monetizing YouTube has started delivering greater gains for account holders as well.