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Advertising is a vital component of any business’s growth strategy, but it can be challenging to determine how much money to allocate to it. As John Wanamaker, the marketing pioneer, once said, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” Fortunately, modern tools like YouTube ads allow you to track your ad spend to see how it’s performing.

In this post, we’ll focus on small businesses with budgets of $10,000 to $200,000 a month, discussing how to determine your advertising budget based on the actions that will grow your business.

Decide on Your Conversion Actions

The first step in determining your advertising budget is to decide which actions people will take that will actually grow your business. What are those conversion actions that need to happen for your business to thrive? This is crucial because it’s what you’ll track to determine whether your ads are working or not.

For example, if you’re an e-commerce business, you’ll want to track how many people initiate the checkout process and how many people actually purchase your product. On the other hand, if you’re a service-based business, you might want to track how many leads or opt-ins you receive, how many webinar registrations you get, or how many booking calls you have.

Build Your Advertising Budget around Your Conversions

Once you’ve decided on your conversion actions, it’s time to build your advertising budget around them. This is where you need to consider how much each conversion action is worth to your business. For instance, you might decide that a customer is worth $300, and you’re willing to spend up to $100 to acquire that customer. Therefore, your advertising budget should be based on this calculation.

One common mistake small business owners make is focusing on the wrong metrics. For example, they might want to create brand awareness, but they don’t have a clear goal in mind beyond that. Instead, you need to determine what you want people to do after they become aware of your brand.

Conclusion

Determining your advertising budget can be challenging, but it’s a crucial step in growing your business. By focusing on the right conversion actions and building your budget around them, you can ensure that you’re not wasting your advertising spend. Remember that your advertising budget should be tied to specific KPIs or actions that you want people to take. With these tips in mind, you can create a successful advertising campaign that will help your business thrive.

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.

YouTube is a powerful tool for growing your online presence, but it can be difficult to get started. If you’re struggling to grow your channel, you might be interested in learning about YouTube ads. In this blog post, we’ll explore how YouTube ads work, the benefits they offer, and how they can help you get your first 10,000 subscribers in just a few months.

How YouTube Ads Work

When you advertise on YouTube, you create ads that viewers can skip after five seconds. These ads are displayed on other monetized channels, and you only pay when someone clicks on the ad or watches the first 30 seconds. YouTube Ads offer several benefits:

• Immediate feedback on how your ad is performing
• The ability to target other creators’ audiences
• The potential to grow your subscribers quickly

When you create a YouTube Ad, you can specify that viewers who click on the ad are taken directly to your channel, where the Subscribe button is prominently displayed.

The Benefits of YouTube Ads

One of the biggest benefits of YouTube Ads is their ability to help you grow your channel quickly. When you’re trying to grow your channel organically, it can take months or even years to see significant growth. With YouTube Ads, you can start seeing results immediately.

Another benefit of YouTube Ads is their ability to target other creators’ audiences. By placing your ad on another creator’s channel, you can leverage their audience to help grow your own channel.

Finally, YouTube Ads offer immediate feedback on how your ad is performing. You can see how many views your ad has received, how long viewers watched it, and whether they clicked on it or subscribed to your channel.

Case Study: Growing a Channel with YouTube Ads

To illustrate the power of YouTube Ads, let’s look at a real-world example. We started with no subscribers and wanted to grow our channel quickly. So we decided to use YouTube Ads to promote our content.

We created a YouTube Ad and targeted it at other creators’ audiences. The viewers who clicked on the ad would be taken to our channel, where the Subscribe button was prominently displayed.

Within five months, the channel had gained its first 10,000 subscribers. We attribute this success to the power of YouTube Ads and our ability to target other creators’ audiences.

Important Considerations

While YouTube Ads offer many benefits, it’s important to use them wisely. If you’re trying to grow your channel with YouTube Ads, be sure to run the ads from a separate account. This will prevent the ads from affecting your channel’s view duration metrics, which can negatively impact your organic growth.

Conclusion

If you’re struggling to grow your YouTube channel, YouTube Ads might be the solution you’re looking for. By using YouTube Ads to target other creators’ audiences, you can quickly grow your subscriber count and increase your online presence. Just be sure to use YouTube Ads wisely, and you’ll be on your way to success in no time!

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.

Are you considering running YouTube ads but you’re unsure about what counts as an ad view or how it compares to other advertising platforms? In this blog post, I’ll break down what is an ad view, how much it costs, and the journey from viewer to a customer that can grow your business.

What is an ad view?

When we talk about YouTube ads, we’re referring to instream video ads. These are the skippable ads that viewers can choose to watch or skip after five seconds. The good thing about this is it creates a better experience for both the viewer and the advertiser. When you set up a campaign, there are different bid types, but the cost per view bid type means that you only pay for a view. A view is when a viewer watches 30 seconds of your video or interacts with your video, whichever comes first. This means that you don’t have to pay for a view if someone skips your ad after 28 seconds.

How does it compare to other platforms?

Comparing YouTube ad views to other platforms, a view on Facebook or Instagram is counted when the viewer watches the video for at least three seconds. On TikTok, a view is counted when the viewer watches for one second. This makes it important to know what’s more valuable to you as a business owner, a second view or a 30-second view.

The YouTube viewer to customer journey

A view is good, but what’s more valuable is when a viewer watches your ad and decides they want to know more. When they click on your ad and go to your website or landing page, that click is more valuable than a view. It’s on your website where they can see your offer and decide to make a purchase. This is why it’s important to have a clear and concise message in the first five to ten seconds of your video ad.

Conclusion

YouTube ads are one of the most powerful ads out there because the viewer gets to choose whether they watch it or not. You don’t have to waste your money on people who aren’t interested in your ad. What’s important is to understand what a view is, how much it costs, and the journey from viewer to customer. The key is to make your ad valuable and compelling enough to keep the viewer engaged and interested in your business.

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.

As a marketer, it’s important to be mindful of advertising costs and understand how to make the most of your advertising budget. This is especially true when it comes to YouTube ads. Knowing what you’re doing can make you a lot of money, but if you don’t, you can end up losing a lot. In this blog post, I’m going to dive into how much it costs to advertise on YouTube, how the Google Ads auction works, and three different levers you can pull to lower your advertising costs and increase your ad performance.

Costs of Advertising on YouTube

We’ve been running YouTube ads since they first came out in 2012. I was curious about how advertising costs have changed on YouTube over the last decade, so I went into our MCC account and pulled data from 2014 to 2022 from all of our managed accounts. In 2014, the average CPM (cost per thousand impressions) was $12.52, while the average cost per view was 11 cents. Flash-forward to 2022, and the CPM has increased nearly three times to $32.71. However, the cost per view has remained at 10 cents on average.

Key Takeaways

The costs of any advertising platform will rarely stay the same, and almost never go down. Instead, they tend to go up over time. However, the cost per view on YouTube has remained the same, meaning that you can still get a high-quality view for a relatively low cost.

Understanding the Google Ads Auction System

The Google Ads auction system is designed to determine who can advertise and whose ads will be shown. While it may seem like whoever pays the most will win, that’s not always the case. Instead, the system takes into account a number of factors, including how much you’re willing to pay for a specific action.

Three Levers You Can Pull

To make the most of your advertising budget on YouTube, there are three levers you can pull. The first is to optimize your ad targeting by ensuring that your ads are shown to the right people at the right time. The second is to optimize your ad format by choosing the right ad format for your campaign objectives. Finally, you can optimize your bidding strategy by adjusting your bids based on your campaign goals.

Conclusion

As a marketer, it’s important to understand how to make the most of your advertising budget, especially when it comes to YouTube ads. By understanding the Google Ads auction system and the levers you can pull to optimize your ad performance, you can ensure that your ads are making you money, and not the other way around.

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.

With over 2 billion monthly active subscribers, YouTube is an incredibly powerful platform for reaching your target audience. However, many businesses assume that their audience isn’t on YouTube and overlook it as a marketing channel. In this post, we’ll explore why this assumption is misguided and how you can use YouTube ads to reach your ideal customers.

The Power of YouTube Ads

During a speaking engagement, Tom Breeze, the CEO of Viewability, asked his audience how many of them had seen a YouTube video in the last week. Nearly 90% of the room raised their hands, even though the audience was paying $1500 to attend the event. This illustrates the broad reach and appeal of YouTube, which is not limited to low-priced products or services.

According to Google, nearly a third of the world’s population uses YouTube. This massive user base provides a wealth of data for targeting ads to specific audiences based on their interests, search history, and behavior on the platform. By using the right targeting methods, you can get your message in front of the right people at the right time.

Targeting Methods for YouTube Ads

Here are three of the most effective targeting methods for reaching your target audience on YouTube:

1. Custom Intent: This targeting method allows you to target people who are actively searching for specific topics on Google. For example, if someone searches for “how to get six-pack abs” on Google, you can show them an ad for your fitness product when they watch a YouTube video about cats or dogs. This method is highly intent-based, as you’re reaching people who are actively searching for solutions that your product or service can provide.
2. In-Market Interests: This targeting method uses Google’s data on what websites people are frequenting and how much time they spend on them. By targeting people who visit websites related to your product or service, you can reach an audience that’s already interested in what you have to offer.
3. Remarketing: This method allows you to target people who have already interacted with your brand in some way, such as visiting your website or subscribing to your YouTube channel. These people are already familiar with your brand and are more likely to engage with your ads.

Leveraging AI for Better Targeting

One of the challenges of targeting ads is ensuring that they resonate with your target audience. However, by leveraging AI, you can optimize your ads for maximum impact. AI can analyze your ad’s performance and make adjustments to improve its relevance and effectiveness.

Conclusion

Don’t overlook the power of YouTube ads for reaching your target audience. With over 2 billion monthly active users, YouTube provides a massive audience for businesses of all types. By using the right targeting methods and leveraging AI, you can get your message in front of the right people and drive high-quality leads and sales.

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.

YouTube is one of the biggest platforms for video sharing and viewing, and it has become a key advertising platform for businesses. However, many business owners don’t understand how YouTube advertising works, how much it costs, or how to turn advertising into an investment. In this blog post, we’ll provide an overview of YouTube advertising and explain the costs involved. We will also cover how businesses can make advertising on YouTube a successful investment by understanding their metrics and budget.

How YouTube Advertising Works

YouTube uses a TrueView advertising model, where businesses only pay for views when a viewer has watched 30 seconds of their ad or engaged with the ad, whichever comes first. This means that if a viewer skips an ad before 30 seconds or stops watching before 30 seconds, the advertiser is not charged for that view.

On other advertising platforms, like Facebook and Instagram, a view is counted after three seconds with the audio turned off. On TikTok, a view is counted after just one second, even if the viewer is scrolling past the ad. This means that YouTube’s TrueView model provides more value for businesses, as they only pay for views from engaged viewers.

Costs of Advertising on YouTube

The cost of advertising on YouTube varies depending on geographic location, targeting options, ad performance, and bid type. On average, the cost per view across hundreds of thousands of campaigns is around 10 cents. The cost can be as low as 2 cents or as high as 30 cents, depending on the factors mentioned above.

Understanding Your Metrics and Budget

To make advertising on YouTube a successful investment, businesses need to understand their metrics and budget. It is important to know how much a customer is worth to the business and how much they are willing to spend to acquire a customer. For example, if a customer is worth up to $10,000, a business may be willing to spend up to $2,000 to acquire that customer, as this would provide a five-to-one return.

Businesses also need to know how their customers become clients. For example, if a customer needs to fill out an application to become a client, businesses may be willing to spend up to $200 per application, as this would still provide a good ROI.

Conclusion

Advertising on YouTube can be a powerful tool for businesses, but it is important to understand how it works, how much it costs, and how to make it a successful investment. By using the TrueView model, businesses can get more value for their advertising dollars, as they only pay for views from engaged viewers. To make advertising a successful investment, businesses need to know their metrics and budget, including how much they are willing to spend to acquire a customer and what their cost per customer is. By understanding these metrics, businesses can make informed decisions about their YouTube advertising budget and ensure that their advertising efforts are paying off.

If you want to make money on YouTube, keep creating quality content that resonates with your viewers, and eventually, you’ll be able to turn your passion into a thriving business.

If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our 2023 YouTube Incubator program.

We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.

Click here to find out more about it.