How are in-stream overlay ads priced?

In-stream overlay ads, also known as overlay ads or overlay in-stream ads, are priced differently from traditional in-stream video ads. Instead of being priced on a cost-per-view (CPV) basis like skippable video ads, in-stream overlay ads are typically priced on a cost-per-click (CPC) or cost-per-thousand-impressions (CPM) basis.

Here's how the pricing models work for in-stream overlay ads:

1. **Cost-per-Click (CPC)**: With CPC pricing, advertisers are charged each time a viewer clicks on the overlay ad. The advertiser pays a predetermined amount for each click, regardless of whether the viewer takes any further action after clicking on the ad.

2. **Cost-per-Thousand-Impressions (CPM)**: With CPM pricing, advertisers are charged for every 1,000 times the overlay ad is displayed to viewers. The advertiser pays a predetermined amount for every 1,000 ad impressions, regardless of viewer interaction or engagement with the ad.

The choice between CPC and CPM pricing depends on the advertiser's objectives and preferences. CPC pricing is suitable for advertisers looking to drive traffic to their website or encourage specific actions, as they only pay when viewers actively click on the ad. CPM pricing, on the other hand, is more focused on maximizing ad exposure and brand visibility, as advertisers pay for impressions regardless of viewer interaction.

In-stream overlay ads are displayed as semi-transparent banners or graphics overlaid on top of the video content being watched. They typically appear in the lower portion of the video player and can include a headline, description, and call-to-action button. These ads are designed to be non-intrusive and can provide additional opportunities for advertisers to reach and engage viewers within the context of the video content.

In-stream overlay ads on YouTube are typically priced on a cost-per-click (CPC) or cost-per-view (CPV) basis.

Under the CPC pricing model, advertisers only pay when a viewer clicks on the overlay ad. The cost per click can vary depending on a number of factors, such as the advertiser's targeting settings, the competitiveness of the ad auction, and the quality of the ad itself.

Under the CPV pricing model, advertisers only pay when a viewer watches at least 30 seconds of the ad or interacts with it (such as by clicking on a call-to-action). The cost per view can also vary depending on a number of factors, such as the advertiser's targeting settings, the competitiveness of the ad auction, and the quality of the ad itself.

It's important to note that in-stream overlay ads on YouTube are not always shown to viewers. Advertisers can choose to set a maximum daily budget for their campaigns, and the platform will only show the ads when they are likely to be relevant and engaging to viewers. This means that advertisers may not always reach their maximum daily budget, but they can be assured that their ads are being shown to a highly targeted audience.

Overall, the pricing for in-stream overlay ads on YouTube is based on a variety of factors, including the advertiser's targeting settings, the competitiveness of the ad auction, and the quality of the ad itself. Advertisers can choose to pay on a cost-per-click or cost-per-view basis, depending on their goals and budget.