How are TrueView discovery ads priced?

TrueView discovery ads on YouTube are priced on a cost-per-view (CPV) basis. This means that advertisers are charged each time a viewer clicks on the ad thumbnail and begins watching the video. Unlike other TrueView ad formats, where advertisers are charged based on views or interactions (such as when a viewer watches 30 seconds of the ad or engages with it), TrueView discovery ads specifically charge advertisers for clicks on the ad thumbnail.

Here's how TrueView discovery ads are priced:

1. **Cost-per-Click (CPC)**: Advertisers are charged for each click on the ad thumbnail that leads to a view of the promoted video. The cost of each click may vary depending on factors such as the competitiveness of the keywords, targeting options, and bidding strategy.

2. **Auction System**: TrueView discovery ads participate in an auction system where advertisers bid for ad placement based on their maximum CPV bid. Advertisers set a maximum CPV bid, which represents the maximum amount they are willing to pay for each view generated by a click on the ad thumbnail.

3. **Competitive Pricing**: Advertisers compete with each other in real-time auctions to have their TrueView discovery ads displayed alongside relevant search results, on YouTube watch pages, or on the YouTube homepage. The ad positions are determined based on factors such as bid amount, ad relevance, and expected click-through rate (CTR).

4. **Ad Rank**: The position of TrueView discovery ads in search results and on watch pages is determined by the ad's Ad Rank, which is calculated based on the maximum CPV bid and the ad's expected CTR, relevance, and landing page experience.

Overall, TrueView discovery ads offer advertisers a flexible and cost-effective way to reach potential customers on YouTube through targeted placements alongside relevant search results and video recommendations. Advertisers pay only when viewers actively engage with the ad by clicking on the thumbnail and starting to watch the promoted video, making it a performance-driven ad format.

TrueView Discovery ads are priced on a cost-per-click (CPC) basis. Here's how the pricing model works:

1. **Cost-Per-Click (CPC)**: Advertisers are charged each time a viewer clicks on the thumbnail image of the TrueView Discovery ad to watch the video. Unlike traditional advertising models where advertisers pay for impressions or ad placements, TrueView Discovery ads only incur charges when viewers actively engage with the ad by clicking on it.

2. **Engagement-Based Pricing**: Since TrueView Discovery ads are user-initiated and require viewers to click on the ad thumbnail to watch the video, advertisers are charged based on viewer engagement with the ad. Advertisers are not charged for impressions or ad placements; they only pay when viewers take action by clicking on the ad.

3. **Bid System**: Advertisers set a maximum CPC bid, which represents the maximum amount they are willing to pay for each click on the ad thumbnail. The actual CPC that advertisers pay may be lower than their maximum bid, depending on factors such as competition, ad relevance, and targeting options.

4. **Budget Control**: Advertisers can set a daily budget for their TrueView Discovery ad campaigns to control their overall spending. Once the daily budget is reached, the ad campaign stops running until the next day, ensuring that advertisers stay within their budget limits.

5. **Optimization Opportunities**: Advertisers can optimize their TrueView Discovery ad campaigns to maximize the effectiveness of their ad spend and achieve their campaign objectives. By experimenting with different bidding strategies, targeting options, ad formats, and creative elements, advertisers can optimize their ad campaigns for better performance and ROI.

Overall, TrueView Discovery ads are priced on a cost-per-click (CPC) basis, with charges incurred only when viewers actively engage with the ad by clicking on the thumbnail image to watch the video. This pricing model provides advertisers with flexibility and cost control, allowing them to optimize their ad spend and achieve their campaign objectives efficiently.