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YOUTUBE MONEY: AD REVENUE

YOUTUBE MONEY: AD REVENUE


Hey you! My name is Thomas “TomSka” Ridgewell
and this week I thought we’d do something a little different. There’s a lot of speculation
on YouTube when it comes to money. How much do people earn? Where does the cash come from?
And do I still have to pay child support if she lied about being on birth control? Well
I figure it’s about time that you got the answers to most of those questions. Now, consider this a warning. In this series
I’m going to be talking very openly about money and using myself and my earnings as
an example. YouTubers make money off of their “YouTubing” shouldn’t come as much of
a surprise these days but it is admittedly an uncomfortable to talk about. This series
is undoubtedly going to change the way some people view me and our relationship but, given
that your support is what keeps me and others afloat, I think you have the right to know
how it all works. Let’s do this! There are 3 main ways to make money through
YouTube: advertising revenue, brand sponsorships, and merchandising. Today we’re going to
focus on ad revenue. There are currently 5 different types of advertisements that can
be shown on and around YouTube videos. Embedded ads. These feature directly on the
video page and don’t really get in the way at all. Overlay ads. These pop up 10 seconds into
a video, right on top. Also if I’m watching a video with you and you don’t close these?
You’re the worst. Skippable ads. These are adverts which play
before or at some point during the video you’ve chosen to watch which you can and probably
will choose to skip after 5 seconds. Non-skippable ads. These also play before
your chosen video but you can’t skip them. Fortunately they’re limited to being a maximum
of 30 seconds long. Sponsored cards. Kinda like an overlay ad
these can appear on sponsored videos with information relevant to whatever product is
being promoted. So, here’s how it works. First, an advertising
company will say to YouTube, “I want my advert to be seen a hundred million times!”
and YouTube will say, “Alright, give us all your money!” Next, a creator uploads a video to YouTube
and says, “Hey YouTube, I want some of that money, put those sweet sweet ads on my video.”
They do this using a service called AdSense. YouTube then asks, “Do you own absolutely
everything in this video? We don’t want our ads to be associated with anything stolen!” The creator says, “Yep! I made all of it
and the stuff I didn’t make, I have the right to use!” YouTube then puts those ads on and around
the video. The type of ads are usually chosen by the creator but not what the ads are actually
promoting. That’s all decided algorithmically based on the audience and what YouTube thinks
is relevant to that individual video. Then, the more those ads are seen, clicked
on, or watched, the more money the creator makes. What money exactly? Why a percentage of the
money the advertisers gave to YouTube, of course! What percentage exactly? Who knows! Not me. YouTube says it’s a pretty even split and
we kinda have to just take their word for it on that. Now, that’s a little bit about the different
types of ads and how they work but it still doesn’t answer the question of how much
money they actually generate. Well that, my friends, varies massively from channel to
channel and even then it still fluctuates daily. A lot of this comes down to your CPM
which essentially means how much money you make each time 1,000 adverts are delivered
to your audience. So, say my CPM was £1, I’d make £1 each time I got 1000 views;
or £100 for 100,000 views; or £1000 for 1,000,000 views. And so on… You get where
I’m going with this? However, it’s not really that straight forward
since different types of ads make different amounts of money. Unsurprisingly if your audience
sits through a 30 sec unskippable ad, that’s going to be more valuable to advertisers than
a little box on the side of the screen that’s quite east to ignore. Again, how great that
difference is though? We don’t really know. That’s of course assuming that people can
actually see the ads on your channel and haven’t installed some sort of ad blocker. Because
if you’ve done that… The YouTubers don’t get anything. I’ll admit as I am a larger
YouTuber both in subscribers and body mass that it doesn’t affect me too much, but for
a smaller YouTuber it can be the difference between keeping a channel going and giving
up entirely. Essentially what i’m saying is… THINK OF THE CHILDREN! So, why do CPMs vary and fluctuate? Well,
I think a lot of that comes down to your audience and the type of content you make. For example,
I’ve had my CPM drop as low as 30p. I think that’s because advertisers know that they
can reach my predominately teenage boy audience anywhere. However, if your content reaches
out to an incredibly niche audience – say, older women – you could be looking at a much
higher CPM – say £30 – because you’ve got that corner of the market completely covered.
Also advertisers spend more money at different times of the year; so, leading up to Christmas there’s plenty of delicious ad money flying around YUM YUM! But come January… Oh no… Finally, at the end of the month, AdSense
calculates everything together and pays you… Assuming you’ve made more than the minimum
amount necessary to actually be paid. If not it’ll carry over to the next month and so-on.
Hurrah! Now, with all that in mind, my channel brings in an average of around 10,000,000
views per month. So, depending on my CPM and the time of year, that can range from a payment
of around £3,000 to – if I’m really lucky – up to £10,000. Now would probably be a
good time to point out that that money goes to my company, not to me. Would be nice though. Now, the last thing I want to talk about in
this video is MCNs – multi-channel networks. MCNs are typically management companies who
offer logistical support to YouTube channels in exchange for complete control of their
ad revenue and usually a percentage of all other income streams. They can be a good thing,
they can be a bad thing, it all depends on the company and the contract you sign. They
all promise to make you more money than you already are and usually try to play it off
that they’re doing so simply because they’re such great, supportive people… If that sounds
too good to be true, that’s because it absolutely is. Like any company, they’re in it for
the money, so just don’t rush into anything until you have a full understanding of what it is and how you can get out of it. Lawyer up, baby! Lawyer up! Okay! I hope that answered a lot of questions
you may have had. There are obviously more complexities to ad revenue and AdSense but,
and it pains me to admit this, I don’t actually know everything. However, do check back the
next time I do a YouTube Money Video because it’s gonna be all about Brand Sponsorships,
if you have any questions about that leave them in the comments below. Thanks for watching!
I’ll see you next time! TomSka out.

100 thoughts on “YOUTUBE MONEY: AD REVENUE

  1. It is very Informative. I'm just starting youtube and this video helps me to understand about ad revenue. Thanks a lot!

  2. What's the difference between revenue and ad rates? Both give me different amounts, and how do they know where to send the check or money?

  3. If you download a adblocker think of a youtubers money if say 100,000 people used ad blockers that's 100 pounds down the drain or 169 AUD or 122 USD etc Doing that means your a enemy to the channel if you have a ad blocker delete for the sake of Youtubers

  4. can you please help me? how is this possible, i have 1 video that has 120 views and is 6 minutes long with 150 minutes total watchtime, and my other has 60 views and is 8 minutes long and has 58 minutes wachtime total. but WHY does this one made 6 times more money than the one that has more views and more watchtime??

  5. my youtube analytics says estimated revenue $sss.** for December but my adsense says $ss.** but thats from november. why isnt december there yet??

  6. I can see my you tube earning on my channel's dashboard but It is showing 0$ on Ad-sense page. WHY ? Does it make any difference ?

  7. "Do you own absolutely everything in this video?! We don't want our ads to be associated with anything stolen!"

    LMAO….utter bullshit. The amount of channels I see cashing in thousands of dollars a month through stolen videos is disgusting. Youtube just don't give a fuck anymore….they don't audit channels at all.

  8. There is a pixel that is not moving throughout the whole video. I thought it was dust on my screen at first, so I had to move the browser window to be sure.

  9. you're one of the biggest youtubers to be openly honest on how much money you make and how the entire youtube economy works. +subscriber/like

  10. Hey can anyone help me? I have started a small channel and last time I got about a 1.5 dollars and ad revenue and when I got back way later it reduced to about 90 cents. I know it's a small amount and it doesn't matter, but I'm just curious HOW DOES IT WORK, can you loose money if you are not there to upload or DO YOU GET TO KEEP WHAT YOU ALREADY EARNED?

  11. Is it true that the value you get from an ad increases if the watcher clicks through? I try to do that for creators I like them just close the browser after google registers the click, it feels like there should be a kickback

  12. im so confused when i go to my ad rates on youtube it says 90.00 but when i go to my actual google adsense it says only $40.18 can someone explain this? also my estimated revenue says $51.66. im so lost

  13. GHOSTROBO NET WORTH – $800,000

    Zach Drapala is an American gamer popularly known as GhostRobo from Detroit Michigan and currently lives in Indiana. He has an estimated net worth of $800,000. He plays and reviews various games such as Watch Dogs, Titanfall, Battlefield, Mafia 3, Gears Of War etc He also does vlogs once in a while. GhostRobo channel was started back in October 2010 and has been growing ever since. Zach’s two younger brothers, Jake and Noah sometimes feature in some of the videos.

  14. i just want to say he should get no negativity he said this so we could know and used it as a way to understand how everything works and that is respectable!

  15. Thats for explaining. I want to start monetizing later on once i grow more. I needed a good and quick way to learn how it worked. Awesome channel by the way too

  16. How can YouTube tell when it's different users? Like for example do they detect the devices through Mac address or IP address?

  17. Can someone help me I have a video that generated 800 dollars of revenue for just 2 days however I am receiving almost nothing out of nearly 500,000 views. The video is fully monetized, not claimed by any copyright and not identified as receiving limited ads. Out of 800 dollars my revenue is reported as 5 dollars which is why I noticed a massive difference in ad sense and youtube earnings. What should I do??

  18. I'm just starting out and $1 for 1,000 views sounds truly abysmal for a regular person who isn't famous. Add the fact I can't help but incorporate things like other peoples songs into my videos… or else my videos would fucking suck….. and thus most of my videos are disqualified from Ad Sense too. This sounds only decent for famous people. Like yeah. If you are Justin Bieber singing your hit single and thats his intellectual property or whatever, then yeah, get 500million views over night and cash in. But this is nothing worth pursuing for a normal folk. YAY PATREON?

  19. Can someone help me.. my money is still on my YouTube account, when does it go to Adsense and when will it pay me? And how much will they keep… I know that it starts from 70 Euro but will the 70 euro go to your bank account or will they keep the first 70 Euro's?

  20. my question is when does the money shift over to adsense? is it daily or monthly? because i earned a whopping $28 that posted to adsense a month ago but it hasnt added the revenue earned from youtube in the creator studio since then.

  21. Thanks, this is very informative now I wanna know how can I grow my audience in the west., US only contributes 6% to my views.

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