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.
This goes against what has drawn many audiences to the platform in the first place. YouTube has a history of LGBT acceptance – being the home of the “it gets better” videos, in which celebrities and public figures tell their coming out stories. Many people have also spoken about how YouTube’s videos on transitioning or mental health helped them greatly. So given this, it is hoped that going forward, YouTube also remembers to pay attention to their communities and audiences as well as the big brands and content creators.
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4. Use product placement and video sponsorship: Companies interested in your channel’s audience might sponsor your videos or offer you product placement deals in exchange for a shout out. You’ll likely receive payments on a per-sale basis or in commission tiers. Search on sites such as ShareASale, Clickbank and CJ Affiliate by Conversant for possible corporate partners — and be sure you’re willing to vouch for the company and products you’re selling before signing up.
In order to truly succeed on YouTube, you need to approach it differently than other social platforms. Facebook, Instagram, and Twitter revolve around both creating and sharing great content with the goal of creating awareness, engagement, and conversation. (That’s a simple definition, but for the purpose of this argument, it will work for now). It’s about actually socializing.
Why is YouTube now one of the most cost-effective strategies for marketing your business? More than 80% of customers are using online search to find businesses so it's vital that you show on the first page of the Search Engine Results. However the virtual landscape is becoming more and more competitive, so you may find yourself struggling to get your business to show in the top results.
All that money is providing Google with more financial firepower to buy the rights to stream cable networks' shows on YouTube, too, which is likely to reel in even more viewers. It also is helping finance Alphabet's investments in projects such as self-driving cars and Internet-beaming balloons. That segment, known as Other Bets, lost $865 million during the July-September period, narrowing from a $980-million setback last year as Alphabet imposed more expense controls.
13. Build traffic to your site. “Add links to your Social Media profiles and websites into your description area of your video. This will help people find you no matter how many views your video gets. Let them know how they can see similar videos of interest from you.” – Chris N. West, These 17 Marketing Tips Will Get You the Best Results from YouTube, ChrisNWest.com; Twitter: @ChrisNWest
The YouTube interface suggests which local version should be chosen on the basis of the IP address of the user. In some cases, the message "This video is not available in your country" may appear because of copyright restrictions or inappropriate content. The interface of the YouTube website is available in 76 language versions, including Amharic, Albanian, Armenian, Bengali, Burmese, Khmer, Kyrgyz, Laotian, Mongolian, Persian and Uzbek, which do not have local channel versions. Access to YouTube was blocked in Turkey between 2008 and 2010, following controversy over the posting of videos deemed insulting to Mustafa Kemal Atatürk and some material offensive to Muslims. In October 2012, a local version of YouTube was launched in Turkey, with the domain youtube.com.tr. The local version is subject to the content regulations found in Turkish law. In March 2009, a dispute between YouTube and the British royalty collection agency PRS for Music led to premium music videos being blocked for YouTube users in the United Kingdom. The removal of videos posted by the major record companies occurred after failure to reach agreement on a licensing deal. The dispute was resolved in September 2009. In April 2009, a similar dispute led to the removal of premium music videos for users in Germany.
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.
YouTube is one of the most popular websites on the planet, receiving billions of views a year and paying out millions to the content creators that it hosts. Money earned through YouTube is generated by advertisements. Content creators who host ads on their videos receive about half of the ad revenue those ads generate, while YouTube takes the rest. Anyone can monetize their videos, as long as their videos do not break copyright law.
The SEC late last year prodded the company to explain why it doesn’t share YouTube data, according to regulatory filings in February. Accounting rules require companies to disclose revenue for operating segments that account for 10% of a company’s total revenue, profit or combined assets. YouTube’s numbers are included in Alphabet’s advertising 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.
Next up you’ll want to become a YouTube Partner. This isn’t as hard as it used to be. In the past, to become a YouTube partner you had to have some 15,000 hours of your video watched at any point in time. The benefit here is that you can upload more than 15 minutes of video, which may help on some video projects. You also get analytics tools and some more advanced editing tools.
6. Meet up with fans in the real world: Meetups and similar events let YouTubers connect with viewers and sell merchandise. They’re usually best suited to those with active and engaged subscribers. Those with smaller audiences might want to skip ticketed events and bank on merchandise sales instead. Or if, for example, your videos teach viewers how to draw, you could set up a free class at a local park and sell your book of drawing techniques afterward.
“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
For channel art, choose something that represents your business while being visually dynamic. I highly recommend using graphic design tool Snappa to create your YouTube channel art. They have pre-made templates that are sized to fit your channel perfectly, all of which are fully customizable. Try to use similar colors, fonts, and stylistic choices that you make on your website and profile picture. You can also add text to help get your point or brand across more quickly. A great example is AdEspresso’s own channel art:
YouTube uses a cost per view (CPV) model, which means you only pay when someone engages with your video ad. If your ad is skipped, you aren’t charged for that view. The exact cost per click varies varies on keyword competitiveness but on average it’s around $0.06. Once you set your daily campaign budget, YouTube will display your ad until the daily budget is spent.
You can also sign up for Patreon, which allows you to launch membership-only video channels through YouTube at a small fee per month for regular rewards. Just imagine how much a YouTube channel could generate if it has the 1,000 subscribers required by the YPP. Charge $1 for a new channel with new content, and you could be looking at a solid monthly revenue stream.
After all that prep work, it’s finally time to start filming your video. Don’t own a fancy camera or have budget to rent one? Don’t worry! Advances in smartphone cameras have made it possible to film great content with just a phone. If you are filming your video with a phone, be sure to turn it sideways and film in landscape mode. This will prevent awkward cropping or framing when you upload the video to YouTube, which natively supports the landscape format. No matter what you’re filming with, these tips can help your video to look professional and stay engaging for your viewers.
In early May, Amazon announced a new service initially designed for "professional video producers." Launch partners include media firm Conde Nast, the "How Stuff Works" website and Samuel Goldwyn Films. Amazon Video Direct could compete for the young creative talent attracted to YouTube. As does YouTube, Amazon offers revenue-sharing and royalties for content that attracts a certain level of traffic.
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“When you create your videos, you should keep this in mind. What is going to be the ad that draws people to the video? If you’re going to draw people in with an offer of information, then the video should get to that information right away. For example, if the link to the video said ‘Weekly market report,’ then the video should begin with the weekly market report, or some information pertaining to it.” – Michael Darmanin, The 4 Essential YouTube Tips, RISMedia; Twitter: @RISMediaUpdates
Consider start-up costs. Your start-up costs largely depend on the type of content you're putting out. For "Pittsburgh Dad," the cost to launch the show was virtually nothing, Preksta says. The first episode required just three supplies: Preksta's iPhone, a polo shirt from Goodwill and a pair of glasses. The show hasn't required much of an investment in technology since, "At the end of the day, it's me, Curt and a couple of lights," Preksta says.
As more advertising dollars flow to YouTube, it's making the already hugely profitable Google even more prosperous. On Thursday, Google's corporate parent — Alphabet Inc., based in Mountain View, Calif. — said the company overall earned $5.1 billion, or $7.25 a share in the third quarter, up 27% from the same quarter last year. After subtracting advertising commissions, revenue climbed 21% to $18.3 billion. Both figures beat analyst projections.