How Much Does YouTube Advertising Cost in the UK

It probably must have happened to you that you are watching a YouTube video, and an ad appears before or during it. These ads appear because they are part of YouTube’s advertising system, and many businesses in the UK use them to reach people just like you and me.

YouTube ads allow you to reach millions of viewers who daily scroll, search, and watch YouTube videos, shorts, and ads on this platform. This makes it excellent for businesses to show their ads and let more people know about what they offer.

If you are also thinking of running a YouTube ad, then you should just go for it. However, you will also have to know about YouTube advertising costs in the UK. Is it affordable for small businesses? Or is it only for big brands with bottomless marketing budgets?

That’s what this guide is here to answer. In this blog, we will explain how YouTube charges for ads, what the prices depend on, and how much you might need to spend.

So, if you have been curious about advertising on YouTube but weren’t sure how much it would set you back, keep reading. You are about to discover that reaching your ideal audience might be much easier than you think.

Why Advertise on YouTube?

YouTube is a popular video platform in the UK and worldwide too. Many individuals watch videos every single day. This makes YouTube an excellent platform for existing or new businesses that want to show their ads and reach a wide audience.

In fact, data published in Google’s own tools show that YouTube ads reached 2.53 billion users in January 2025. That’s a massive number of people who can see your message, product, or service, just by watching a video.

Here are a few more good reasons to advertise on YouTube:

• Massive Audience: YouTube allows you to reach a large audience with the help of its targeting options. You can target your audience based on what you are offering. For example, if your business is related to study materials, it is a great idea to target students to show your ads.

• Target the Right Audience: Advertising on YouTube allows you to select the audience you want to offer your products or services to and who can see your ads. This will connect you with an audience that cares more about what you are offering.
  
• Flexible Budget: You don’t need bags filled with money to start. Instead, you can decide how much you spend each day based on your budget.
• Better Engagement: As we know, users often find the video ads more engaging. This also allows your audience to remember these ads and go like, “yes, I have seen this ad.” This means the audience will get to know more about your brand and take action, like purchasing your products on your website.

Different Ad Types: YouTube offers many ad formats. You can choose short skippable ads, longer non-skippable ones, banner ads that show during a video, or discovery ads that appear in search results. This gives you more ways to share your message.

How Much Does it Cost to Advertise on YouTube?

YouTube advertising, on average, costs about £0.01 - £0.30 per view in the UK. That means if 1,000 people view your ad, you pay between about £10 and £300, depending on your targeting, ad type and competition.

For instance, if you run a short ad about your coffee shop in London and restrict the audience to those in the vicinity, you could pay roughly £0.05 per view. YouTube also offers a daily budget, so if you only have £5 a day to spend, you can do so and closely monitor your spending.

Average YouTube Advertising Costs in the UK

Before you start running ads on YouTube, you should wrap your head around how the cost of ads works. There are multiple pricing models for YouTube advertising. The costs usually available are cost per view (CPV), cost per click (CPC), and daily or monthly budget. Let's discuss each of them now in detail.

1. Cost Per View (CPV)

Cost per view (CPV) is one of the common ad models that you will come across when you advertise on YouTube. It is especially good for skippable in-stream ads. If you are using CPV as a pricing model, you will only be charged when a user has watched your ad for at least 30 seconds, or until the end of the ad if it is shorter than 30 seconds.

You will also be charged if the user clicks on a link or button. Normally in the UK, CPV is about £0.01 - £0.30, usually depending on what audience you are targeting, how competitive your industry is and how good your ad is.

For example, if your CPV is £0.05 and 1,000 people watch your ad, your YouTube advertising cost in the UK would be:

£0.05 × 1,000 = £50

This pricing model is ideal for businesses that are trying to grow brand awareness and retention in the minds of users who notice and remember your business or product.

2. Cost Per Click (CPC)

CPC pricing is mainly used for YouTube discovery ads. These are the ads that appear in search results or in the “recommended videos” section. In this type of model, you pay only when someone clicks on your ad to watch your video or visit your website.

In the UK, the average CPC ranges between £0.20 and £1.50.

So, if your CPC is £1 and 200 people click on your ad, your total cost would be:

£1 × 200 = £200.

CPC is a good choice if you want closer interaction, such as website visits, app installs, or sales.

3. Daily and Monthly Budgeting

YouTube offers flexible options for budgeting, making it easy for businesses to control their spending. You can set a:

• Daily Budget: This is the max you are willing to spend each day. For example, if you set a budget of £10, then Google will help you keep your spending around that amount each day. This may vary depending on traffic. 
  
• Monthly Budget: You can also calculate your monthly spend by multiplying your budget by the number of days your campaign will run. For instance, if you are running an ad for over 10 days and don't want to exceed £100, you can set that as your maximum spend.
• Campaign Total Budget: You can set a limit for the campaign. If you plan to run an ad over 10 days and don’t want to go over £100, you can set that as your maximum spend.

YouTube has never spent more than the amount set by the user. The user can pause or adjust the budget at any time.

What Influences the Cost of YouTube Ads in the UK?

If you are thinking about running ads on YouTube in the UK, you might be wondering—Why do some ads cost more than others? The answer is that YouTube doesn’t charge one set price. The YouTube advertising cost in the UK depends on various factors, which we will explore here. Let’s look at all the factors.

1. Target Audience

The first factor that is definitely going to affect your YouTube advertising cost in the UK is your target audience. Your target audience plays a crucial role in determining the total cost

If you are aiming to reach a broad group, such as "UK teenagers interested in music," you may pay less as the audience in that category can be larger.

But if you are targeting a specific group of audience, like “female small business owners aged 30–40 in Manchester interested in e-commerce,” you will likely pay more.

Why? Because fewer people match this profile, and more advertisers are probably trying to reach them too. The more precise your targeting, the more competition there is, which in turn increases the cost per view or click.

2. Ad Format

YouTube offers different kinds of ads, and each one has its own price range. Some are cheaper, while others cost more because of how they are shown:

• Skippable In-Stream Ads: These play before or during a video and can be skipped after 5 seconds. These usually cost less since not everyone watches the full ad.
  
• Non-Skippable In-Stream Ads: These ads can't be skipped and usually last 15 seconds. Because people must watch them, which makes them more expensive.
  
• Bumper Ads: These are short 6-second ads that also can't be skipped. They are quick but tend to cost more per 1,000 views.
  
• Discovery Ads: These show up in YouTube search results and the homepage. They're good for those who are actively looking for something, but can cost more because they attract higher-intent users.
• Masthead Ads: These appear at the top of YouTube’s homepage. They reach millions of viewers fast, but are very expensive and are mostly used by big brands.

3. Industry or Niche

There are many business types, and each one is charged differently when it comes to ad costs. Some industries are super competitive; finance, real estate, tech, education, and insurance are just some examples.

Many businesses in these fields are willing to spend a significant amount of money to acquire customers, driving up bidding prices. If you are advertising a bakery or a pet grooming service, promoting these home-based businesses won’t be as competitive, and costs will also be lower.

The demand in your industry has a direct correlation with the costs associated with showing your ad.

4. Video Quality and Engagement

YouTube rewards ads that your audience likes. If your video is engaging and viewers keep watching it, YouTube considers it an ad of the highest quality. That means that your ad can be shown to more people, and that too at a lower cost.

However, if users skip your ad quickly or it doesn’t capture the viewer's attention, YouTube considers it a low-performing ad. This leads to higher costs because YouTube naturally wants to avoid running ads that fail to engage its users.

Therefore, ensure that your scripts, visuals, sound, and editing are of higher quality, as this will make your ad more cost-effective.

5. Ad Schedule and Timing

When your ad runs, it can also change its cost. If your ads run during busy times or days, the YouTube advertising cost in the UK will be more expensive.

For instance, during holidays and weekends, when the number of customers viewing increases, businesses also start running their ads at that time. That is why you need to decide on the timing and the schedule when your ads will run.

If you decide to schedule your ads during less busy times, the costs can be lower because of less competition.

6. Bidding Strategy

Another factor that influences the cost of YouTube advertising in the UK is the bidding strategy you use. Are you wondering where the bidding comes in advertising and how it is related?

YouTube ads run on an auction system, meaning you are competing with other advertisers to win ad space. You can set the bid in two ways:

• Let YouTube set the bid automatically
• Set a manual bid

If the bids are higher, you will receive better placement, and your ads will appear more frequently and to a more targeted audience.

However, this also means that you will need to spend on YouTube advertising. It is essential to spend some money on these ads to ensure your bids aren’t too low, as it will result in your ad not appearing at all. You can pick the bidding strategy based on your goals, like:

• Views
• Clicks
• Conversions

This will make a difference in how much you will pay.

7. Where You Show the Ads

The location you are targeting will also change the cost. If you want your ad to show all over the UK, you need to expand your budget.

However, if you want to focus on big cities like London and Birmingham or cities where there are more viewers and advertisers, the YouTube advertising costs will be higher.

But spending on advertising in small towns or rural areas can cost less, as fewer businesses will be bidding for attention there.

8. Campaign Objective

Your campaign goal also influences the price. If your primary goal is brand awareness, you will pay less because YouTube prioritises reaching as many people as possible.

However, if you want users to click a link, fill out a form, or make a purchase, then you will incur additional charges. That is because YouTube has to work harder to show your ad to people who are more likely to act, and that means higher costs for better targeting and results.

How to Set a YouTube Ad Budget That Works

If you don’t know how to set a YouTube budget, we can help you. Let’s walk through how you can set a budget that works and gets results.

1. Understand What You Want to Achieve

First things first — ask yourself: What do I want to achieve with this ad? You need to be clear about what you want your ad to do. As different businesses have different goals, they also have to use strategies and set budgets according to those goals.

Some common goals include:

• Getting more views for brand awareness
• Driving traffic to your website or product page
• Getting leads or sales through clicks and conversions

Example: If you want more people to know about your new restaurant, you may go for views. But if you want people to book a table online, your goal would be website clicks or conversions. Each of these goals will guide how much you need to spend and what kind of bidding you will choose.

2. Choose Who Will Handle the Campaign

Who runs your YouTube ad campaign is just as important as how much you spend. You have two main options:

• In-house marketing team: If your company has a team familiar with online ads and knows your brand inside and out, it’s cost-effective to keep everything internal. This also means you have the resources to make your YouTube ads work out, but you also need to use them smartly.
• External marketing agency or freelancer: Another option is to hire a marketing agency or freelancer to help you with YouTube advertising.

They will know:

• Which strategy should they use
• How to create videos
• How to do keyword research
• How to target your audience
• How to track performance

Yes, you must be thinking it will cost more, but it will also help increase the chances of you running a successful campaign.

Tip: Even if you hire someone, ask for reports and updates so you know how your money is being used.

3. Pick the Right Bidding Option

YouTube ads run on a bidding system, meaning you choose how much you are willing to pay for certain actions. The bidding type you pick directly affects how much your campaign will cost. Here are the main types:

• CPV (Cost Per View): As already mentioned above, in this bidding option, you pay when someone watches your ad for 30 seconds or the whole ad (whichever is shorter)
• CPC (Cost Per Click): In this bidding option, you have to pay when someone clicks on your ad.
• CPM (Cost Per 1,000 Impressions): Here, you have to pay every time your ad is shown 1,000 times.

Example: If the bidding option you choose is CPV and you set your bid at £0.04 per view, with a £10 budget, you can reach almost 250 views per day.

Your bidding choice should match your goal. For awareness, CPM or CPV works well. For website visits, go with CPC.

4. Decide Your Daily and Campaign Budget

YouTube allows you to control how much you can spend each day or till your campaign ends. This lets you know how much budget you need to set, which will help you avoid spending too much.

You can set:

• Daily Budget: Set a fixed amount you want to spend each day.

Example: If you choose £10 per day, your ad won’t go over that.

• Campaign Total Budget: This is the total amount for the entire ad campaign.

Example: If you want your ad to run for 20 days and spend £200 in total, YouTube will adjust daily spending to match the full amount.

Tip: Start with a smaller daily budget (like £5–£10/day) to test the campaign. Once you know what works, you can increase it.

5. Start Small and Test First

It is advisable to start small and run a test campaign for a few days or a week to learn whether your campaign is working and how your audience is reacting to your ad, rather than just spending a huge amount on your first campaign.

Ask yourself:

• Are people watching the ad?
• Are they clicking the link or taking action?
• Is the cost per view or click within your target?

If you have answers to these questions, then it allows you to decide whether you need to increase the budget, change the ad content, or target a different audience.

6. Keep an Eye on Performance Metrics

Once your ad is running, monitor its performance regularly. Use tools like Google Ads and YouTube Analytics to track:

• Cost per view (CPV)
• Click-through rate (CTR)
• Watch time and engagement
• Conversions (like sign-ups, purchases, etc.)

These numbers show whether your ad is doing well or needs improvement. If your CPV is too high, try adjusting your audience targeting or changing your video thumbnail and title.

Tip: Don’t let your campaign run without checking in. Regular tracking helps you improve your results and avoid wasting money.

7. Example Budget Plan

Let’s say you run a small coffee brand and want to promote your new product line.

• Goal: Get people to visit your website and view the product.
  
• Team: Your in-house marketing team is handling it.
  
• Budget: £15 per day for 14 days = £210 total.
  
• Bidding Strategy: CPV at £0.05 per view.
• Expected Views: Around 300 views per day.

You monitor the performance after the first 3 days. You notice viewers are watching the video but not clicking. You change the video’s call-to-action and adjust targeting to reach coffee lovers aged 25–40. The click-through rate improves, and you continue with your campaign more confidently.

Comparing YouTube Costs to Other Ad Platforms

We have included this for those who must be wondering how YouTube costs are different from other ad platforms and why they should opt for YouTube advertising.

YouTube and other ad platforms have different pricing, audience reach, and types of engagement. Here is a detailed comparison.

1. YouTube vs Google Ads (Search Ads)

The first comparison is between YouTube and Google Ads. One similarity between them is that Google runs them. However, they work in different ways.

Users can see Google Ads when they type a search query into Google, while YouTube ads are shown during or before videos. Google Ads prices are usually higher per click.

The average CPC on Google can be between £1 to £2, and it can be more if your selected niche comes under a competitive industry. However, the YouTube advertising cost in the UK, if you opt for CPV, is around £0.01 to £0.05.

The primary difference between them is that Google Ads allows you to target an audience who is searching for your products or services. At the same time, YouTube ads help attract your audience's attention when they are watching videos.

2. YouTube vs Facebook Ads

Facebook Ads cost more than YouTube when it comes to CPC and CPM. Facebook Ads in the UK usually cost around £0.30 to £0.70 per click. These ads allow you to show images or video ads on the Facebook feed and stories.

These ads allow targeted ads based on user interests, behaviour, age, and more. Facebook Ads are better for quick visual ads and improving engagement through likes, shares, and comments. YouTube ads are focused more on longer engagement through video.

3. YouTube vs Instagram Ads

Instagram is part of Facebook, but it’s more visual and often used by younger audiences. Instagram CPC is similar to Facebook, usually £0.40 to £0.80, sometimes more for competitive industries, while YouTube CPV is still cheaper, ranging around £0.01 to £0.05.

The key difference between them is that Instagram is great for fashion, food, beauty, and lifestyle content. YouTube works better for detailed messages, product demos, and brand stories.

Recommended Reads: Facebook Ads vs Instagram Ads: Which is Better for Local Brands?

4. So, Which Platform is Cheaper?

If you compare strictly by numbers, YouTube tends to be cheaper per view than other platforms. But the right platform depends on your goal:

• For awareness and storytelling, YouTube wins with its low cost per view and longer watch time.
  
• For quick conversions, Google Ads for your business can be better, though more expensive.
• For engagement and community building, Facebook and Instagram work well.

Final Takeaways

In this blog, we have discovered the YouTube advertising cost in the UK. We also learned how it can be affordable yet highly effective. The amount you will need to spend can be between £0.01 to £0.05 per view or £0.30 to £0.70 per click.

We also explored how other factors, like the type of industry, video quality, bidding strategy, ad placement, and who manages your campaign, can impact your total budget.

Setting a daily or monthly budget and choosing between your in-house marketing team or an experienced agency are both key steps to staying on track.

When comparing YouTube with Google Ads, Facebook, and Instagram, YouTube stands out for offering affordable reach and storytelling through video. It is not always the cheapest in every situation, but it provides excellent value for growing brand awareness.

Need Help Getting Started?

Let Arramton help you plan, run, and manage your YouTube advertising campaigns from start to finish. With our expert team by your side, you will make every pound count. Reach out to Arramton today and start turning views into value.

Frequently Asked Questions

Q1 How much does 1 YouTube ad cost?

Ans A YouTube ad can cost anywhere from £0.01 to £0.30 per view in the UK. Also, remember that the amount depends on factors like your target audience, the type of ad, and competition in your niche.

Q2 How much does YouTube pay for 1,000 views in the UK?

Ans YouTube pays UK content creators around £1 to £5 per 1,000 views. The amount you will receive will depend on your content, audience, and ad rates. Channels with an excellent niche and engaged viewers can earn more.

Q3 Is YouTube advertising good for small businesses in the UK?

Ans Yes, YouTube advertising is good for small businesses in the UK. You can start with a small budget, choose your target audience, and only pay when someone watches your ad.

Q4 What affects the cost of YouTube ads in the UK?

Ans The cost depends on your ad type, who you’re targeting (age, location, interests), how many other advertisers are bidding for the same audience, and how long your ad runs.

Q5 What is the minimum budget for YouTube ads in the UK?

Ans The minimum budget for YouTube ads in the UK can be as little as £5 per day.

Q6 Are YouTube ads cheaper than Facebook ads in the UK?

Ans Yes, in many cases, YouTube ads are more cost-friendly than Facebook ads in the UK. It becomes beneficial, especially when focusing on video content and impressions, YouTube often delivers better value per view.