The online-video unit posted revenue of about $4 billion in 2014, up from $3 billion a year earlier, according to two people familiar with its financials, as advertiser-friendly moves enticed some big brands to spend more. But while YouTube accounted for about 6% of Google’s overall sales last year, it didn’t contribute to earnings. After paying for content, and the equipment to deliver speedy videos, YouTube’s bottom line is “roughly break-even,” according to a person with knowledge of the figure.
In order for a YouTuber to get paid for an ad, the viewer of their video must have Ad-Block turned off (meaning they will see all the ads on videos) and must watch at least 30 seconds of videos they could otherwise skip. Or, this will work if the viewer sees smaller ads like banner ads, according to YouTuber Mah-Dry-Bread. The money generated from the viewer watching these ads is split between YouTube and your channel.
The money you earn on YouTube is entirely dependant upon how many views your videos receive. If you have a large number of subscribers and all of your videos receive thousands of views, the ad revenue will be high. If your videos have a low number of views, those videos will not generate much in terms of revenue. “Gangnam Style,” for example, was a viral hit that received over two billion views and generated as much as $5.9 million in revenue. However, even popular users generally see views in the thousands rather than the billions, so earnings are considerably lower on average. As of 2013, it is estimated that one video with a million views can earn the creator between $800 and $8,000.
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“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
Some investors and others have renewed calls for more transparency from YouTube in light of accounting rules and recent questions raised by the Securities and Exchange Commission about its disclosures. They say YouTube has become a material part of Alphabet’s business and an important driver of its growth, warranting quarterly disclosure of its revenue, costs and profitability. Some investors are also arguing that the lack of disclosure around YouTube could potentially be undervaluing Alphabet.
Next let’s break down the types of advertisements on YouTube. You’re probably familiar with them if you watch any amount of YouTube videos. There’s the bottom text based ad that is displayed at the bottom of your video, and then there is the clip that plays at the beginning of your video. You can select which of these ads your video can have, and it might make a difference depending on your audience or how much revenue your video brings in.
The idea of making millions off of videos the way YouTubers like PewDiePie famously have certainly seems like a pseudo-new-American Dream. And while not all of us will reach internet stardom with our videos, it might be worth looking into how you could make a few dimes from the popular platform. So, how do you make money from YouTube, and what will you need?
Eric Sachs, SEO virtuoso and CEO @Sachs Marketing Group gives some great ideas on how to make your content more interactive. It allows you to create a two-way conversation with your viewers. Since YouTube discontinued their annotations tool (which did not work on mobile), it replaced it with end screen and cards because of the mobile-first approach.
Volume. Wins. Ask any full-time YouTuber, social celebrity, successful vlogger, or brand on YouTube and they will tell you that their viewership rose as soon as they started increasing their volume. Now, there is a tipping point, and you can’t simply be publishing rubbish content and expect it to perform well. The perfect intersection is quality content but published on an extremely regular basis—but it’s the regularity that often gets glossed over.
Now that you’ve produced a video and optimized it for search, let’s talk about how to market your YouTube channel and videos. While ranking high in search results and having a large subscriber base are ideal, those goals can be difficult to achieve when you’re just starting out. That’s why it’s important to always spread the word about your YouTube channel and videos across other platforms. Fortunately, YouTube and other platforms make it easy to share video content. Below are some tips for how to best promote your YouTube content on other channels.
Knowing who you are and, perhaps more importantly, who your audience is will make you attractive to advertisers, sponsors and partners outside the YouTube sphere, experts say. Make sure to also set yourself up as someone who is "brand safe," says Tyler Vaught, head of Niche, Twitter's service that connects creators worldwide with brands to develop branded content. That could mean not using profanities, avoiding charged political topics and dodging drug references and other controversial topics on your channel.
And though they don't appear to be huge revenue contributors at this point, the YouTube Red and YouTube TV subscription services can't be overlooked when trying to value the company. Particularly YouTube Red, which provides ad-free YouTube, some original shows and access to the Google Play Music service for $10 per month, and which led YouTube to become the top-grossing U.S. iPhone app in March. Later this year, Google plans to replace Google Play Music -- in many ways Red's weak link -- with YouTube Remix, a music service that's fully integrated with YouTube.
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YouTube Live allows users to broadcast live content to viewers. Live video allows you to easily share unfiltered moments, and lets your audience participate with real-time comments. Live videos on YouTube are recorded and appear like an other video upload. You can easily start a YouTube live stream from your phone or desktop by following these steps.