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.
As far as I am presently aware, the true fact stands that YouTube is valued by multiple sources at around $100 billion, and they absolutely are taking a massive cut from content creators. Regardless of their exact numbers, the fact remains that they are taking a massive cut that could otherwise go directly to content creators, that absolutely, unequivocally makes the difference for many of those creators between profitability and operating at a loss.
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.
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.
46. Put the hook in the first burst of your message. “You only have a few seconds to make your message stick. In those precious moments, it’s crucial to have your brand message heard. Before posting the content, it’s important to ask yourself, ‘Can a viewer get a persuasive glimpse of what they’re about to watch?’ Whether your video is entertaining, informative, sarcastic, or best of all, authentic, be sure the first burst of your message has the hook they need to keep watching.” – Dustin Kapper, As Seen on YouTube: Tips for Video Marketing, PepperGang; Twitter: @Pepper_Gang
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.
Both In-Stream and Discovery are pay-per-view -- you pay YouTube a fixed rate for every view the ad receives -- and their return on investment (ROI) can be measured in Google AdWords. YouTube tallies one new "view" after 30 seconds of watching, or a click on the video as it's playing. If the video is less than 30 seconds, views are tallied from people who watch the entire ad.
Infrastructure costs -- The concept of free user services and scaling to eventually make them pay depends on the negligible price of adding additional consumers. But video is demanding of bandwidth and storage. Even if those are cheap in general, once you're handling as much material as the service does, it means big expenses for infrastructure. Although those costs won't scale linearly with the increased number of users, they do grow.
Ezarik and many other YouTube stars are often paid as a brand “ambassador” or “influencer.” After all, if a popular YouTube personality has direct access to millions of fans — who could watch their videos anywhere, anytime, and on a multitude of devices — a sponsorship or endorsement arrangement could be smart for companies big and small. And it could be extremely lucrative for the YouTuber, too. With TV viewership on the decline, millennials are turning to YouTube in big numbers. YouTubers can be creative on how they integrate products or services into their videos. Ezarik has worked with major brands including Mattel, Microsoft, Ford, GE, Intel, Sharpie, Doritos, Taco Bell, eBay, P&G, Banana Republic, Samsung, AOL, and Carl’s Jr.
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.
“I recommend that your account picture (which you set through your Google account) is some sort of brand logo. If you’re a one-person business, it can be a professional headshot of you. Ideally, it should match your profile pictures on other social media accounts for instant brand recognition. This works both ways; if ones of your followers from another site comes across your YouTube, you want them to recognize you so they’re more likely to watch. And, vice versa, if a viewer Googles you, you want them to be sure that the Facebook profile they’re clicking on is actually you. To change your channel art, just click on it when editing your profile.” – Ana Gotter, The Beginner’s Guide to YouTube Marketing, AdEspresso; Twitter: @AdEspresso
3. Check out YouTube Red: AdSense isn’t the only way partners can make money on YouTube. You can also make videos available on YouTube Red, which is the site’s ad-free subscription service. And if you have more than 1,000 active subscribers, you can put videos behind a paywall and enable Super Chat, which lets viewers pay to have their messages highlighted during a live stream. To use that feature, partners have to be older than 18.
Remind your YouTube viewers to subscribe to your channel, during or after the video plays, and in the description or comments section. Tag your videos with relevant keywords, so people can find your work. Push traffic to your YouTube channel from other social platforms. “Boosting your subscribers won’t happen overnight, but keep it up. Consistency is key, and you can reach out to other creators for advice or collaboration,” adds Ezarik (YouTube says collaboration is critical, too). Interact with your viewers by responding to comments.
The first step to becoming a YouTube marketing pro is creating and optimizing your video’s metadata. Simply put, metadata gives viewers information about your video, which includes your video title, description, tags, category, thumbnail, subtitles, and closed captions. Providing the right information in your video’s metadata will help to ensure that it is properly indexed by YouTube and appears when people are searching for videos like yours. Be succinct and straightforward when filling out your metadata -- your content could be removed if you try to promote it with unrelated keywords. Check out the video and tips below to learn more about optimizing your video for search.