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.
Watch time reports the total number of minutes your audience has spent viewing your content on your channel as a whole and by video. This helps you see what pieces of content viewers are actually consuming instead of just clicking on and navigating away. Watch time is important because it’s one of YouTube’s ranking factors. A video with a higher watch time is more likely to rank higher in results. YouTube provides a line item report on watch time, views, average view duration, and average percentage viewed for individual videos, location, publish date, and more. A video’s average percentage viewed, or retention rate, indicates the average percentage of a video your audience watches per view. A higher percentage means there’s a higher chance that your audience will watch that video until the end. Try placing cards and end screens in videos with a higher average percentage viewed rate to improve the number of views your calls-to-action receive.
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.
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“With the help of Google Keyword Planner, or other keyword research tools, you can find topically-relevant keywords and phrases based on broader seed keywords, and evaluate the competitiveness of each along the way. For a newer channel, it would be reasonable to start with easier, less-competitive keywords or more specific long-tails, and once you succeed – to try ranking a video for more competitive terms.
“Even if advertisers are paying a decent amount to promote their products through video ads, only a portion of their expenditures ever make it into content creators’ pockets,” says entrepreneur Michael Johnston. “For example, if advertisers are paying an average of $20 per 1,000 ad impressions, the videos where those ads are being shown may only generate $2 or $3 per 1,000 views.”