“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.”

Estimates for YouTube's annual revenue, nearly all of which still comes from ads, vary a fair amount. But many of the estimates are now above $10 billion. At different points, Bank of America and Mizuho forecast that YouTube would post 2017 revenue of $13 billion and $12 billion, respectively. And in February, Baird's Colin Sebastian estimated YouTube is doing around $15 billion in annual sales.
“Fun and informative content will be shared above traditional advertising. Since you’re going to all that trouble to lure people to your page, make sure the content on your page is light and informative. This will increase the chance of them interacting (comments, likes) and sharing your videos.” – Adam Rowles, 8 YouTube Tips for Business Marketing, Business 2 Community; Twitter: @B2Community
Regardless of the exact number, it's safe to assume that YouTube's ad sales are growing at a rapid clip. On its earnings calls, Google has signaled that outside of mobile search, YouTube has been the biggest driver behind its rapid ad sales growth. Last quarter, "paid clicks" on Google's own sites and apps rose 59% annually -- this figure covers not only actual ad clicks, but (among other things) the showing of YouTube video ads that were watched long enough for Google to get paid.

The second view is e.g. taken by Christian Fuchs in his book "Internet and Society". He argues that YouTube is an example of a business model that is based on combining the gift with the commodity. The first is free, the second yields profit. The novel aspect of this business strategy is that it combines what seems at first to be different, the gift and the commodity. YouTube would give free access to its users, the more users, the more profit it can potentially make because it can in principle increase advertisement rates and will gain further interest of advertisers.[135] YouTube would sell its audience that it gains by free access to its advertising customers.[135]:181
“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.

“But don’t be fooled into thinking that improving your watch time is as simple as creating longer videos. A 30-second video that people watch from beginning to end will rank better than a 10-minute video that only gets watched for a couple of minutes. In the end, the best way to boost watch time is to produce videos you audience wants to watch.” – Ric Mazereeuw, How Does the youTube Algorithm Work? A Guide to Getting More Views, Hootsuite; Twitter: @hootsuite


Not only do subtitles and closed captions help viewers, they also help optimize your video for search by giving you another opportunity to highlight important keywords. You can add subtitles or closed captions by uploading a supported text transcript or timed subtitles file. You can also provide a full transcript of the video and have YouTube time the subtitles automatically, type the subtitles or translation as you watch the video, or hire a professional to translate or transcribe your video.           
Optimize the watching experience — Improve your search presence and connect with your audience by using optimization tactics for your videos. This includes uploading Featured Content for current subscribers or a Channel Trailer for visitors. You could also curate your videos into appropriate playlists. This will organize your content and encourage viewers to continue watching.
This means that if someone skips an ad, or is running an ad blocker, then you don’t get paid for that view. This makes estimating the amount of views a video has and how much a user makes off of the video very challenging. It also depends if it’s a video ad at the front of your video, or just a box at the bottom of your page; this determines how many people interact with your ad and the amount of money that can be made.

"Whether your business is closer to Boeing or P&G, or more like YouTube or flickr, there are vast pools of external talent that you can tap with the right approach. Companies that adopt these models can drive important changes in their industries and rewrite the rules of competition"[134]:270 "new business models for open content will not come from traditional media establishments, but from companies such as Google, Yahoo, and YouTube. This new generation of companies is not burned by the legacies that inhibit the publishing incumbents, so they can be much more agile in responding to customer demands. More important, they understand that you don't need to control the quantity and destiny of bits if they can provide compelling venues in which people build communities around sharing and remixing content. Free content is just the lure on which they layer revenue from advertising and premium services".[134]:271sq
YouTube is a massive site, so it’s easy to quickly blow your ad budget, especially if you choose high-volume targeting options. Unless you’re working with a big budget to start with, set your budget low enough to ensure you don’t spend too much on a single keyword target. You can always raise your budget after you’ve had a chance to optimize your campaign and know which keywords offer the best ROI.
Because of the time you're allotted with this ad format, it's suggested that you create this type of ad with the goal of views and brand development, rather than just clicks into your website. This ad ideally generates revenue from the long-term brand awareness that comes out of a story people don't want to skip, and one viewers remember the next time they approach your product or service.
“The first step in producing a video that ranks high in your niche is finding the right keywords. You should find keywords that have YouTube video results on the first page of Google so that your video also has a high likelihood of ranking near the top of the page for the relevant search terms.” – Raghav Haran, A YouTube Video Marketing Guide to Increase Prospects in Your Funnel, Single Grain; Twitter: @singlegrain
Step 4 Write smart descriptions. Youtube displays the first 125 characters in the search results. So be aware of your first sentence. Make it count. You want to compel someone to click on your result. But don’t stop there. The full description has room for 5,000 characters. That is prime real estate. Use it wisely and add in a few latent semantic keywords and tags in your description.

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Once your channel is setup, it’s time to start populating it with content. This is where the fun begins! In this section, we’ll talk about some different types of videos you can create and walk through how to film and edit videos. Overwhelmed? Feeling uninspired? Check out our list of great video advertising and marketing campaigns for creative ideas to inspire your next project .
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