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How Much Money Should I Spend on YouTube Advertising in 2024?

YouTube has become a cornerstone for businesses aiming to maximize their online presence. With millions of users worldwide, YouTube offers a vast audience for advertisers. In this guide we explore the YouTube ad cost for 2024, understanding how to budget effectively for advertising campaigns on this platform is the first step in achieving your marketing goals 

Understanding YouTube Ad Costs

YouTube advertising costs vary greatly depending on several factors, including the ad format, targeting options, and bidding strategy

On average, businesses might allocate between $10 to $50 daily for their YouTube campaigns. However, the actual expenditure can fluctuate based on objectives and market dynamics.

The cost of YouTube ads is influenced by seasonality, the bidding strategy employed, the specificity of the target audience, and the chosen ad type. For example, advertising costs can spike during high-demand seasons like the holidays. The ad’s placement and the competition for ad space also significantly affect pricing.

Here are some numbers around YouTube ads from other advertisers:


  • Nearly half of all businesses dedicate between 6% and 30% of their total ad budgets to YouTube campaigns. 
  • Typically, companies allocate $10 to $50 daily for YouTube ads. Achieving 100,000 impressions on an ad generally costs between $400 and $1000.
  • Moreover, three-quarters of these businesses report satisfaction with the returns on their YouTube advertising investments.


Bidding Strategies and Ad Formats

YouTube offers various bidding strategies, such as Cost-Per-1000-Impressions (CPM) and Cost Per View (CPV), each with its pricing model. For instance, CPM rates average between $4 and $10, while CPV can range from $0.03 to $0.3 per view. Advertisers can choose from several ad formats, including Bumper Ads, Non-skippable Ads, In-feed Video Ads, and the premium YouTube Masthead Ads, each carrying different cost implications.

Costs of Various YouTube Ad Types


Bumper Ads

Bumper ads are brief, non-skippable videos lasting 6 seconds, typically charged based on how many thousands of times they are shown (CPM). These ads are on the pricier side, with costs averaging $10 per thousand views, potentially reaching up to $20 in some cases.

Non-skippable Ads

These in-stream ads play before, during, or after other videos and range from 6 to 15 seconds in length. Since viewers can’t skip these ads, they ensure full message delivery. The cost for these ads varies between $6 and $10 per thousand impressions, slightly less than Bumper Ads due to their longer format.

In-feed Video Ads

In-feed video ads are displayed next to related YouTube content, such as on the homepage or in search results. Charged per view (CPV), these ads cost about $0.10 per view, making them an affordable option for small to mid-sized businesses.

YouTube Masthead Ads

Masthead ads are the premium ad offering on YouTube, prominently placed at the top of the platform. Due to their exclusive nature, they are the most costly, with prices ranging from $300,000 to $400,000. On special occasions like Super Bowl Sunday, the cost for Masthead Ads can jump to $1 million.

How to calculate your YouTube advertising spend?

To know exactly what you need to spend you need to look at a few different kinds of metrics:


  1. Opportunity/lead costs
  2. Conversion metrics
  3. Business metrics

Opportunity/lead costs

These include metrics like:

  • Cost per lead
  • Total advertising spend 
  • Avg cost per click

Conversion Metrics

  • Lead conversion rate
  • Lead to sale percentage
  • Landing page conversion rate

Business Metrics

  • Cost of customer acquisition
  • Customer lifetime value
  • CAC payback

You can use the Youtube ad cost calculator as a directional guide for calculating your ad spend.