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.
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The first is that viewer attention spans- and loyalty- are a bitch. I’m even lumping in my own impatience online here; as a user, if I click to watch a tutorial, an ad pops up, and I see a similar tutorial in the “You May Also Like This” feed, I’ll give that one a shot instead. I’m not kidding. I’ve done this twice today. You don’t want to do anything that will cause viewers to lose interest in your video, or worse, to click to a competitor’s video instead.
Facebook (FB) , which trades for about nine times its 2018 revenue consensus, is still seeing 40%-plus revenue growth and has some big growth levers left to press, is arguably a better comp for YouTube, given its business model, network effect and market dominance. But Facebook is quite profitable -- in spite of heavy spending on data centers and content security, Facebook's 2018 net income consensus stands at $22.5 billion -- and based on comments made by YouTube CEO Susan Wojcicki and others -- YouTube's profits might still be minimal thanks to large data center and content investments.
At the end of the day, though, there are a lot of variables that can affect just how much you can make on YouTube. Your audience has a lot to do with the type of ad that would work best. For example, if you are making short funny videos, it’s probably best to not include a 30-second ad at the beginning—a viewer might just skip right on by. Luckily, YouTube has an analytics page that you can use to see just about every measurable aspect of your video—from demographics to time of day watched and location.
Wait for approval. If you are rejected from the program, you must wait two months before applying again. If approved, you'll be allowed to choose the type of ads you want run on your videos. As of 2011, YouTube partners receive 68 percent of the profit their videos generate through advertising, so advertising your videos and nurturing your followers helps you turn a profit even faster.
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.
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.
Before you start filming video content, you’ll need to set up your YouTube channel. This can get a bit complicated. As you probably know, YouTube is owned by Google. As a result, when you sign up for a Gmail account, you’ll automatically have access to a YouTube account, a Google+ account, and much more. Depending on your business, you may not want to tie your email to your business’s YouTube channel, especially if you need to share access to the account with team members or an agency partner. We suggest that you create a common email account that can be used by multiple people.