Google Ads
intermediate
5 min read3 steps502 views

YouTube Ads Bidding and Budgeting Guide

YouTube bidding strategies depend on your objective. For awareness, use Target CPM (cost per thousand impressions). For consideration, use Maximum CPV (cost per view) — you pay when someone watches 30 seconds or interacts. For conversions, use Maximise Conversions or Target CPA. Budget minimum: USD

YouTube & Video Campaignsyoutube ads bidding budget

Quick Summary

YouTube bidding strategies depend on your objective. For awareness, use Target CPM (cost per thousand impressions). For consideration, use Maximum CPV (cost per view) — you pay when someone watches 30 seconds or interacts. For conversions, use Maximise Conversions or Target CPA. Budget minimum: USD 10/day for most campaigns, but USD 50-100/day recommended for the algorithm to have enough data. YouTube CPVs typically range from USD 0.01-0.10.

Process Flow

Interactive diagram — drag to pan, scroll to zoom

Step-by-Step Guide

Follow these 3 steps to complete this guide

1

Bidding Strategies by Objective

Target CPM: You set a target cost per 1,000 impressions. Best for awareness and reach campaigns. Use with bumper ads and non-skippable ads.

Maximum CPV: You pay when someone watches 30 seconds of your video (or the whole thing if under 30 seconds) or interacts with your ad. Best for consideration campaigns where you want engagement.

Maximise Conversions / Target CPA: Google optimises for conversions on your website. Requires conversion tracking and a sufficient conversion volume for the algorithm to learn.

Target ROAS: For e-commerce advertisers who want to optimise for purchase value rather than conversion volume.

2

Budget Guidelines

YouTube campaigns need enough budget to exit the learning phase. Aim for at least 10x your target CPV or CPA as a daily budget. For conversion campaigns, you need enough budget for at least 50 conversions per week — calculate based on your expected CPA.
3

Typical Costs

CPV for skippable ads: USD 0.01-0.10 depending on targeting and competition. CPM for awareness campaigns: USD 4-15. CPA for conversion campaigns: varies by industry, typically higher than Search but competitive with Display.

Was this guide helpful?

Your feedback helps us improve our guides