If you read Technology and Ideas that would blow your mind, I mentioned how amazed you’d get if you took some time to view a bit of the world’s inventions on video sites like YouTube.
And if you had typed this on same youtube, ”Guy uses camera to zoom in on moon”, the 1:37mins video would have left you stunned.
That’s hardly all. Youtube will stupefy you when you dig deeper I promise
Just like these random 5 video topics you would never have guessed would be ideas of anyone for a production (on YouTube).
- Top 10 Ways to kill ants
- How to spread butter without killing your bread
- Photocopying your bum
- How to drink water fast
- How to spell your name
These topics, and tons more, though seem comical, have actually garnered quite some number of views, which can be translated into cash. The creators received accolades for these videos, and they could have been enriched because of them!
Now, if this doesn’t tell you anything else, it goes to show how the world rewards ideas that comprise a lot of categories asides intelligence. You may be compensated for your effort, or maybe skill. Tipped for the extreme measures taken to display dumbness.
You could be stroked and rewarded for having invested time into something, even though the result was all foolishness.
Yet, most of us haven’t done a lot to expose our relevant ideas. Whether offline, online, tweets, videos, vlogs or posts.
We forget that one of the numerous means of learning, sharing ideas/ information and earning an income is made possible through social media. YouTube being a pure example.
So let’s wander into how this income can be calculated if you have ideas and you have youtube also.
YouTube and Us
So a little quick history about YouTube. It got launched in February 2005 in the US (15years ago this time next year. Yes, that long ago). But video upload options only got activated two months after launch date. That’s April, same year.
The first YouTube video uploaded was by one of the founders, and it was titled “Me at the zoo”. The video wasn’t really a big deal. Low quality, 18secs. It was uploaded that April and got a couple of views.
It wasn’t until a Nike advert that starred the footballer, Ronaldinho, got uploaded in September and hit a million views that things started getting interesting. By this, I mean Google found them interesting. And after being trailed, in less than 2years google bought them over for almost $2billion.
What You Should Know about YouTube and Advertisements
In terms of payments and earnings among YouTube, the advertisers and the content creators – the YouTubers. It starts with the advertisers who pay Youtube to display their ads within/on videos. The revenue from this, on the YouTube accounts, is what Youtube splits with the video-creator/ producer/ owner.
The split isn’t 50-50 however. YouTube keeps about 45% and gives the creator 55% of the total earnings. Making estimated earnings different from exact earnings. You’d understand soon what this means.
The Factors That Affect YouTube Creators’ Exact Earnings
YouTube creators exact earnings are ultimately dependent on monetized view. That is, a viewer needs to see/ click on the ads. Since we understand that YouTube doesn’t pay for just “views” or “subscribers”, but for the advertisements on the videos.
For TrueView ads that are skippable (the ones you can skip after 5 seconds), viewers need to view an ad for at least 30 secs. If skipped, then it doesn’t count as monetized view.
Again, you know it’s not all times you view a video that it would have an advertisement that would play. It depends on if an advertiser were to be bidding at that time. So, the availability of ads is also a factor. I heard the more popular the channel gets, the more ads would be served on their videos by Google.
Just like Troy Draves, Amr Mazen, and a couple of other professionals explain, YouTube advertising spends an average of $0.3 – $4 for every 1000views. Which generally depends on factors like the video’s quality, the content subject, and video’s length.
To Break the Bank With YouTube
The exact earnings per monetized view depend on the cost per mille (CPM). CPM measures how much an advertiser pays to show their ad to 1000 people. The CPM range varies ($1 – $30). However, the average CPM for most channels lies somewhere between $2 and $10.
To translate this into YouTube creator earnings, one Razvan Balanescu breaks it down.
“When you release a new video, it will make 50,000 views in a few months.
So you earn 50,000 x $2/1,000 views = $100 from Google AdSense.
Out of the 50,000 people who viewed your product review, 0.1% will purchase it through the affiliate link. That’s equivalent to 50 customers.
So 50 x $100 x 6% commission = $300 for each video.
In total, for the video, the channel earned $100+$300= $400.”
Simply put, the number of times ads are being served on videos and the kind of CPM it has decide the earnings of a creator. Say, 5000 views, but only 1000 monetizeable views (1000 times ads were shown and not skipped before 30 seconds).
Average CPM being 4$ – 10$, the earnings would yield around 4$ to 10$ on the given video.
This is how and why the number of subscribers count, or not. Having many subscribers who sparsely click on your videos, or worse, use adblockers, could make you not earn a lot. And vice versa.
Also, this is how and where content topic plays a role because if the adverts do not cover your content topic, your subscribers would not be engaged.
Meanwhile, it goes without saying that for all these to be possible, that is, to earn from videos in the first instance, the “display ads” feature on the YouTube channel must be turned on.
You should also have a Google AdSense account connected to your YouTube account to claim the money. That’s where earnings are paid through, which is visible on the channel’s YouTube Analytics.
And that’s about as much as I know, have learnt and researched. I hope this has helped a bit.
Are you a YouTube Content creator?
Or are you thinking that direction? Do the numbers look like they could help in your favor?
If you don’t use youtube, or if you haven’t gotten the hang of it yet, or still subscriber hunting, how have you managed to convert your time spent on the internet into a passive income means?