What Are Typical YouTube Advertising Rates?

There are dozens and dozens of platforms out there to spend your advertising dollars on. Much of the advertising money out there ends of being spent on Facebook and Google ads, they are the two juggernauts. But when it comes to YouTube, what are the typical YouTube advertising rates?

But why are they juggernauts? Largely because of the reach they have and the advanced nature of their algorithms. Even though video marketing is clearly the hottest thing out there right now, there still seems to be a lack of information about how to leverage it. Not to mention how to spend your ad dollars there – even though those of us who use it regularly know it is incredibly powerful and comparatively inexpensive.

What Are Typical YouTube Advertising Rates?

Obviously this is a tricky question because there are very few YouTube ad agencies that even exist (we are one of them). And everyone prices their services differently.
That said, one of the defining characteristics of the cost of running YouTube ads right now is that you can get much more reach and conversions with a less money. So your advertising spend tends to go a lot further.

Here are the typical YouTube advertising rates you’ll find from agencies:

The Performance-Based Model

Performance-based marketing is what we use at Guide Social, it basically means that as the client, you pay the agency either a percentage of results, or a cost per lead.
For example, we work with a lot of webinar funnels. The way we often work our pricing after the initial testing period is an agreed upon rate per webinar registration. So every couple of weeks we’ll look at the data together and bill accordingly.
We prefer this method because it allows us to have skin in the game and makes it easy for good clients to get started with YouTube ads.
However it does hold a fair amount of risk on the agency side, which is why we start this arrangement in our second month together, and we are picky about the clients we choose to take on

Now Read: So, How Much Does a View Cost on YouTube?? >>

The Setup + Retainer Model

There is typically a large amount of setup that goes into a YouTube advertising campaign. Not only do you have to script and produce the actual video ad, but you also have a lot of testing and optimizing to do.

This is what we call our “pilot period.” And while we don’t use this model, many agencies will charge a very large amount of money in the first month to cover all that setup. This is particularly important if there isn’t a funnel in place.

Agencies that charge bigger setup fees off the bat often are also designing landing pages, email sequences, etc. That leads to a very heavy, specialized workload.

The Straight to Retainer Model

This is another great way to get businesses into YouTube ad campaigns cheaper. But once again it can come at some risk to the agency since they could very well be executing a funnel setup on top of all the actual ad buying and that can be time consuming. Nobody wants to work for pennies!

You’ll see this most often with freelancer types and agencies that are just cutting their teeth. Because it can be a stretch and doesn’t allow advertisers to grow with their client should that be an option.

You should also note that with this model it is likely that any video ad creation is not included.

Your Expectation

The brass tax is that you are going to find 95% of agencies will charge a flat retainer each month. It is the most risk-averse option for running YouTube ads on the agency side, and the more risk prone on the client side.
But at the end of the day everyone wants a business with predictable P&L’s.
We use a performance-based model because it not only allows us to grow with our clients, but it takes away the rocky feelings that come along with not getting results and still getting paid large retainer sums. Granted, there’s a risk then of working for free – but YouTube ads is one of the more predictable platforms for success and we prefer to have skin in the game.

Now Read: So, How Much Does a View Cost on YouTube?? >>

Add a comment

*Please complete all fields correctly

Related Blogs