YouTube is a highly used social media platform. It provides an excellent opportunity to promote your business through videos or running ads. It has the second most users after Google. And, it gives you a chance to expand your business among millions of people.

YouTube had over 1.86 billion users in 2021 and more than 2 billion views every month. These stats say there is no better platform than YouTube to run your ads and reach maximum people. So, you can successfully connect with your target audience through YouTube Ads.

Are you wondering what the minimum budget should be for YouTube Ads?

We’ve got you covered! In this blog, we will tell you everything you need to know about YouTube ads and their budget.

So let’s get started!

What Are YouTube Ads?

Before we dig into the details of the budget of YouTube ads, it is essential to know what YouTube ads are. So, YouTube ads are known as the sharing and promoting video content that lets a business or person reach maximum potential customers. These ads can help you increase traffic to your website and lead to more conversions.

YouTube works and shows ads according to the Google Ads algorithm. So, if you run perfectly campaigned ads, your ads will pop up on the YouTube search page or before other videos.

Minimum Budget To Run YouTube Ads

Now that you know what YouTube Ads are, let’s discuss the budget to run these ads. Well, the budget depends on some factors. These factors are:

  • How many campaigns you are running simultaneously.
  • Cost Per View (CPV)
  • Cost Per Click (CPC)

On average, you pay $0.10 to $0.30 depending on the bidding competition. You can run 5 to 10 campaigns at a time or even 10 to 20 campaigns. But, when you start running a YouTube ads campaign for any new account, your account has zero data in it.

So, we suggest you start with a budget of $10 per day and check the data for at least 5 to 6 days. These first few days are known as a learning mode. And, after 5 days or so, you will start seeing what is working for you and what is not. So, by the 7th day, you will have spent $70, which is okay.

The adjustment of the algorithm and bidding strategy happens in this duration. And, by that time, your ads or campaigns will start running well. Now, you can increase your budget by 15% to 20%.

However, if you start with a hefty amount like $50 per day, by the 7th day, you would have spent $250 in the learning mode – not knowing what has happened. Therefore, starting with a low amount is essential for a good advertising process.

Observe your campaigns after 7 days and switch those campaigns off which are not within your KPIs. Instead, spend the amount of these campaigns on the successfully running ones.

Types of YouTube Ads and their Impact on Budget

The budget of YouTube ads also varies depending upon the format or types of videos. A few of these types include:

Skippable Video Ads

Skippable Video Ads

These video ads have ads that appear at the start or middle of a video. The viewer can quickly skip this kind of ad within 5 seconds. The benefit of using this type is you won’t have to pay unless someone spends 30 seconds on this ad or clicks on it.

Non-Skippable Video Ads

Non-Skippable Video Ads

You cannot skip these types of ads as they run for 5 to 6 seconds only at the start of any video. In this way, viewers are compelled to watch the content. The charges for this ad works at the formula of 1000 clicks or views.

Wrap Up

At the end of this blog post, you may have got an answer to your question: what is the minimum budget for YouTube Ads. The perfect budget for this purpose is $10, and the first 3 to 4 days are learning mode. You will get an idea about the working of your campaigns after the 7th day.

So always start with less, and after some time, increase 15% to 20%. Do not go from $10 to $30 a day, as it will put your system again in learning mode. Instead, increase the budget a little for maximum output. Often, you might get pressure from clients to increase the budget of YouTube ads because they are getting more sales or leads. In this case, you should ask them to wait; otherwise, the campaign may stop working.

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About Uzair Kharawala
Uzair Kharawala is the Co-Founder at SF Digital. He is a Certified Google Partner, is a Cricket fanatic and loves Photography.
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