Every day, people watch more than 1 billion hours of video on YouTube. It’s a huge opportunity for businesses looking to reach consumers across the world, especially those in the 18-to-34 age range that dominate the platform. Like regular pay-per-click (PPC) ads, YouTube video advertising lets you target specific types of people searching for the kinds of products or services your company offers.

How much do YouTube ads cost per month depends on how it’s designed and used. For example, ads that run before videos typically cost more than those that appear at the bottom of clips or on the right side of a description section. The video quality is also important. High-quality videos often attract higher bids from advertisers, as do ads with compelling Calls to Action.

Breaking Down YouTube Ads Cost per Month: Insights for Marketers

Once you’ve determined your advertising goal, the next step is to create a campaign and choose a budget. It’s usually best to start with a low daily budget of $10, and then increase it after you see how your ads perform.

You’ll then decide if you want to pay for clicks or views, and then set your maximum bids. You’ll be able to review the average cost of a view or a click, as well as other key metrics, in your Ads Manager.

YouTube video ads can be priced either on a cost-per-click (CPC) or a cost-per-view (CPV) basis. Your choice of pricing model will depend on your campaign subtype—for example, if you’re looking to generate brand awareness, you’ll use CPV, while if you’re aiming for website traffic, you’ll use CPC.