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How Much Do “Viral Video” Ads Cost on YouTube? [NIKE AD]

How Much Do “Viral Video” Ads Cost on YouTube? [NIKE AD]

How do you figure out how much a viral video ad budget costs, if you want to figure out how much money they spent on
advertising for those videos? Well, today we’re going to tell you? Hey, this is Dane Golden. And if you’re a marketer
or a business owner, subscribe now to get all the good tips. Well, today we’re talking about how you can figure out how much money was spent on a viral ad. And I’m talking about
some viral ads behind me: Nike, World Cup, women’s soccer. Now they’re going to have
a lot of ads about this, and they have. And some of those are
going to be organic views, which means they are not paid. And some are paid. And a lot of people don’t realize that when you see YouTube views, some of them are paid and some of them are not paid. And they don’t tell you which is
which, because any video can be
turned into an ad on YouTube – any video at all. But, it’s important to know
how much money is being spent. If you’re budgeting, you want to know how
much money is being spent on your competitor’s ads, because you are going to
have to budget too, right? I found the same video that was up on that huge billboard. And this was the Nike
“Never Stop Winning” video, featuring the women of the US
Soccer Team at the World Cup. And we can see here that this
video has 4.8 million views and it has 9,100 likes. Let’s see if we can come up with a formula that will tell you how many
of those views are paid and how much it cost. And just to get a
close-up of what happened with this video using vidIQ, we can see that on July 7th, it started off with 16,000 views and by July 8th it had 4.6 million views. And since then it’s gotten 200,000 views, but not a ton, maybe 300,000. So almost all of this
happened in 24 hours. And using vidIQ, we can see also that the views-per-hour
were very, very quick. So 100,000 views-per-hour, 180,000 views-per-hour, on July 8th. But today, about 500 views-per-hour. And we can assume that
these are pretty organic. Maybe even less as the month went on. Okay, using my own formula there was 9,100 likes, and 4.87 million views. So according to my formula
of tracking likes to views, generally organic views will have at least one like per view. It’s not exact, but
this is the ratio here. So if you had 9,100 likes, most likely you had almost a million views on this video organically, which is great. And the total views was 4.87 million, minus the organic views. That means that there was
almost four million paid views. Now we don’t know how much
of the video people watched, but when you have four million paid views that you have to get within just one day, most likely this is a pre-roll video, versus a discovery video. So the pre-roll in-stream on YouTube. We don’t know how long people watch, but they watch a little bit less, so they’ll probably have not watched the full minute, certainly. And lets estimate that
they watched on average, because YouTube charges
you for 30-seconds that… So 30-seconds counts as a view, so those views were probably somewhere between 30- and 40-seconds. They can also have a lot of impressions that don’t count for 30-seconds, so there’s probably even
more impressions than views. So how much did they pay? Well, if they paid for two
cents or five cents or 10-cents, we’re going to be able to track that. And let’s say they paid two-cents, then they would have paid $80,000, just for the ad buy itself. If they paid five-cents, it was $200,000. And 10-cents, $400,000. Now their ad company, we don’t know how much
they would have charged, but let’s say they charged 17%. We don’t know if this is the amount, 17.5%, but let’s just throw that in there. And so that means that their cost for the management fee, unless they did it in
some other arrangement, was either $14,000, $35,000 or $70,000. So what was the total ad buy, plus management cost? It was either $93,000, $233,000, or $465,000. Now what was their production cost? Now this was a very good video, so let’s just average a million dollars. We don’t know how much. So, this video it sounds like to me, now you can tell me in the comments if you think differently. This is about 1.1 million to
1.5 million all in for this ad, including production,
execution, and distribution. And I want to make sure you
check out this next video where we’re going to talk about You do that, and you’ll be Golden.

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