Some industry commentators have speculated that YouTube's running costs (specifically the network bandwidth required) might be as high as 5 to 6 million dollars per month, thereby fuelling criticisms that the company, like many Internet startups, did not have a viably implemented business model. Advertisements were launched on the site beginning in March 2006. In April, YouTube started using Google AdSense. YouTube subsequently stopped using AdSense but has resumed in local regions.
YouTube's still-rapid viewing growth -- driven by smartphones and to an extent connected TVs -- has a lot to do with its revenue momentum. At last week's NewFronts online video ad event, YouTube disclosed it now had over 1.8 billion monthly logged-in viewers, up from 1.5 billion as of last June. And back in February 2017, YouTube said it was seeing over a billion hours per day of viewing -- that's about three times what Netflix (NFLX) witnessed on a record-breaking day in January, and 10 times what YouTube saw back in 2012.
As I mentioned, YouTube is one of the biggest websites around – to be more specific, it’s currently the second most popular website in the world. And even though most people don’t think of YouTube primarily as a search engine, that’s exactly what most visitors do on the site. YouTube’s not just the second most popular website; it’s also the second most popular search engine – topped only by Google. This means that the platform presents a huge potential for reach for your business.
This YouTube Money Calculator provides a glimpse into what a user could make with YouTube by estimating a commonly accepted CPM range based off of the average amount of views you insert down below. We take it one step further to provide users with various settings, allowing them to customize the experience. Please remember that these figures are Youtube Estimated Earnings, as there are many mitigating factors which decide what your overall CPM will be.
What kind of sales multiple does this fast-growing video juggernaut deserve? It's tough to think of a direct comparison. Netflix, which trades for over eight times its 2018 revenue consensus, relies on subscription revenue rather than ads. And whereas YouTube largely relies on ad revenue-sharing deals with content partners, Netflix directly pays its content partners for their material.
TaylorEdwinWilliams.com I have been involved with YouTube since its inception and I have had the wonderful opportunity to watch from an insiders perspective as the platform became a giant in new media communications. YouTube is the best way to authentically reach a fan base that is actively looking for content. The most important part of what separates me from my peers is the priority I place on understanding the current landscape of the market. Every Content Creator has something that impassioned them. Here’s a brief overview of what I specialize in. -Lifestyle Vlogs -Character Animation -Whiteboard Animation -Travel Vlogs -Lectures -Interviews -Reaction Videos -Storytime Videos -Listicles -Independent News Reports -Personal Branding Videos -Product Promotion -eLearning Video My Goal as a Video Editor is make sure each person’s unique message is heard loud and clear in a way that an audience can enjoy.
Alternatively, you can partner with an existing merchandising network for creators such as DFTBA (Don’t Forget to Be Awesome). However, you'll be competing with other YouTubers in a marketplace and have less control over adding products, offering discounts, integrating your content, and all the advantages that come with owning your own ecommerce site.
“It is worth noting that millennials are generally more entrepreneurial, with 72% of high-school students saying that they would like to own their own businesses and 76% saying they hope to turn their hobbies into full-time jobs, according to data published by Mashable. You can use this information to develop and deploy marketing campaigns that appeal to the entrepreneurial spirit exhibited by millennials.” – Irfan Ahmad, 7 YouTube Marketing Tips for Reaching More Millennial Consumers, Social Media Week; Twitter: @socialmediaweek
The good news is that income is rising, but efforts to generate a broad and loyal audience that turn to the service on a regular basis for original content appear to have hit a wall. The Journal points out how three years ago YouTube spent hundreds of millions of dollars on original content to build new channels, only to see many of them fail. Getting people to visit the site directly and regularly because there’s something specific they want to see, rather than dropping by occasionally via a link on another site or online service, appears to be a big challenge for the company.
Most successful YouTubers have a very strict publishing schedule – and they stick to it. These YouTubers also promote new videos to their audience on other social media platforms so that even those who haven’t subscribed to their channel can still know when a new video is coming out. While you’re setting up a YouTube marketing strategy for your business, consider how often you can realistically commit to posting new content and make sure you can stick to it.
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But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”
“Additionally, such branding is important for ensuring that your viewers remember the video, which is especially handy when they need to refer someone to it. Even though they might forget the actual content and the name of the video, remembering your branded footage will help direct viewers to your channel.” – Jon Clark, 7 Vital Elements of a Successful YouTube Video, SearchEngineJournal; Twitter: @sejournal
I am an experience search professional who comes from a background of leading a paid marketing team at a Google Premier Partner. In addition to leading the paid team, my experience encompasses all mediums within digital marketing. This experience allows me to seize upon opurtunities that other marketers may not identify. My goal is to bring the highest quality digital marketing services at the absolute lowest price. By keeping overhead low, everyone can afford the big agency feeling!
27. Maximize engagement. “Did you know the more comments a video has, the higher it is likely to rank on YouTube? Brian Dean from BackLinko found comment counts to strongly correlate with rankings, after analyzing 1.3 million YouTube videos to better understand how the platform’s search engine works… The more comments a video has, the higher it ranks. Considering YouTube’s emphasis on user engagement, this isn’t too surprising. For this reason, it’s extremely important to encourage viewers to interact with your videos. Close your videos by encouraging viewers to ‘like’ and ‘comment below.’
Now that we’ve talked about why determining a goal is so important, we can discuss how to effectively measure success. At first glance, YouTube analytics can be pretty overwhelming. On the flip side, it’s frustrating when you post a video and don’t receive as many views or as much engagement as you were expecting. YouTube analytics shows you how viewers found your content, how long they watched it, and how much they engaged with it. Let’s start by going over what exactly you can measure and how to find it.
YouTube ads provided a big percentage of the Segarses’ income during those early days, and worked well with their content. “Our workouts require strategically placed water breaks, which easily lends itself to monetization/ads that aren’t intrusive to the user experience,” says Segars. “People even joke about how relieved they are to see ads and get a quick minute to catch their breath.” Meanwhile, that revenue allowed them to adopt a no-sponsor policy. “It has cut out a lot of monetization opportunities, but our audience is well aware of our stance and appreciates it,” Segars continues. “We think that trust is an important part of building a brand.” As a result, they’ve roped in a loyal audience that’s now willing to pay for a variety of workout programs and meal plans for sale on the Fitness Blender website.
It’s essential to practice inbound marketing techniques when marketing your YouTube channel and videos. Create content that shares an interesting story and provides your viewers with valuable information. Market that content across different platforms, including social, email, and your company blog or website. Optimize your content by including cards and end screens with clear CTAs.
YouTube has focused on developing online personalities such as video game player PewDiePie, music video specialist Smosh and style guru Michelle Phan. Driving much of the traffic to YouTube, analysts say, are multichannel networks such as Fullscreen, Maker Studios, SonyBMG and Whistle Sports. Google has bought stakes in multichannel networks such as Vevo and Machinima, analysts say, to ensure their content stays on its website.
The Social Media Marketing Talk Show is a weekly 1-hour live video show that features expert commentary on the week’s top news in social media and what it means for marketers. Broadcast on Crowdcast, the show is simulcast each Friday to Facebook Live, Periscope, and YouTube. You can also listen and subscribe to the podcast version on iTunes/Apple Podcast, Android, Google Play, Stitcher, or via RSS.
YouTube began as an angel-funded enterprise working from a makeshift office in a garage. In November 2005, venture firm Sequoia Capital invested an initial $3.5 million, and Roelof Botha (a partner of the firm and former CFO of PayPal) joined the YouTube board of directors. In April 2006, Sequoia and Artis Capital Management invested an additional $8 million in the company, which had experienced significant growth in its first few months.
There was some backlash over these new benchmarks, but frankly, the vast majority of people who lost their monetization privileges weren’t earning much anyway. Most channels make somewhere between $1.50 and $3 per thousand views, depending on their content and audience, and Google won’t even cut a paycheck for under $100 (or roughly 50,000 views — a pretty tall order for the average 14-year-old posting eyeliner tutorials). In other words, if you were looking for an easy side gig, YouTube was never the efficient choice.
But even if you discount YouTube's multiples a bit to account for its profit uncertainty, you're still left with a very valuable business. At six times Mizuho's revenue estimate, YouTube would be worth $90 billion. At seven times, it would be worth $105 billion. And those valuation figures would rise a little more if one tacked on a slight premium (say, $5 billion or $10 billion) for the potential of YouTube's subscription businesses.
“According to YouTube’s documentation, End Screens can be incorporated anywhere within the last 5 to 20 seconds of a video and can include up to four elements. In addition to promoting a creator’s own videos and encouraging users to subscribe, the feature can also point viewers to other videos, playlists, or channels on YouTube, or can be used to promote non-YouTube content, like websites, merchandise for sale, or crowdfunding campaigns.
“…’So I really do believe that it’s not about the quality of your camera or your equipment. It’s about the value of the content you’re creating and how much you’re actually going to answer people’s questions or solve people’s problems. And that’s true of so many different videos on YouTube. There are videos that have millions of views that were shot on an iPhone.'” – Sunny Lenarduzzi as quoted by Tyler Basu in Top 3 YouTube Video Marketing Tips from Sunny Lenarduzzi, Influencive; Twitter: @Influencive
Of course, influencers have their own interests to look out for, too. “The process of creating a brand campaign is holistic, and the cost is not standard,” says Natalie Alzate, the woman behind NataliesOutlet, a YouTube channel with almost 6 million followers. “My manager, agent, and attorney work hard to ensure that each campaign is a success, which is measured by whether the fans respond to it as well they do to non-sponsored content.”
YouTube also has an enormous and very diverse audience, which happily uses both YouTube’s and Google’s own search engine to find content they’re looking for. If you’re able to optimize for the right keywords (and I’ll show you how to do that later in this guide!), you’ll be able to connect with that audience instantly, instead of hoping a Facebook Ad shows up in their feed. This allows them to find also has an enormous and very diverse audience, which happily uses both YouTube’s and Google’s own search engine to find content they’re looking for. If you’re able to optimize for the right keywords (and I’ll show you how to do that later in this guide!), you’ll be able to connect with that audience instantly, instead of hoping a Facebook Ad shows up in their feed. This allows them to find you, not the other way around.
How does a video streaming service with one billion active users per month and $4 billion in revenue not turn a profit? Ask YouTube, which couldn't break free from breaking even in 2014, according to a new report. Sources tell the Wall Street Journal that Google's video unit posted $4 billion in revenue last year, up from $3 billion in 2013, and that while the service accounted for 6 percent of Google's overall sales, it contributed nothing to earnings.
Keywords are the other important thing. You need to make sure you put those keywords in your title so it attracts the right audience. Keywords like social media marketing, search engine optimization, conversion rate optimization, ROI, and blogging are all keywords you’ll find me using. If you know your niche, you’ll know what keywords you need to use.
In 2017, YouTube is predicted to evolve even further, making more changes that will benefit companies who incorporate it into their social media and video marketing strategies. From added profile and socialization features for better audience connection to exploring long-form, television style content, YouTube is expected to make some major upgrades this year.
49. Use tags correctly. “One of the biggest mistakes that hinders the growth of your YouTube video’s organic promotion is incorrect tag usage. Tagging in YouTube works differently than it does in a blog post. If you’ve never paid attention to YouTube tags, now’s a good time to start. You can even go back and edit all of your old tags.” – Harsh Agrawal, 10 Killer Ways to Promote YouTube Videos for Higher Traffic, ShoutMeLoud; Twitter: @shoutmeloud
For online and offline Business owners and internet marketers, YouTube Marketing is an essential strategy to take advantage of the web’s massive shift toward video. That’s why it’s so important to learn and test some strategies and to get help from Digital Organics right now. It will give you a huge leg up on your competition, helping your business to move forward.