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YouTube Monetization Explained: Why Others Get Paid MORE Than You! - YouTube
Channel: vidIQ
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so you have 1 000 subscribers and you
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have 4 000 hours watched you've applied
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for
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and been accepted into the youtube
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partner program all you want to do now
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is turn on monetization
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and start earning some sweet sweet cash
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but of course that just leads to the
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next obvious question
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how much am i going to earn from my
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youtube videos
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well around about this much
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now then hey folks i'm rob welcome back
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to vid iq educating you
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on your youtube journey and today's
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lesson is everything you need to know
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about youtube cpms the term itself
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cpm stands for this but all you need to
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know from a youtube perspective
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is that it shows you the dollars you
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earn per 1000 views
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you can of course find this data on the
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analytics page of the youtube studio
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either for your channel as a whole or
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for individual
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videos oh but if only it was
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that simple because you see what we've
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got to do now
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is stack a layer upon layer of
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complexity
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onto this number to work out exactly how
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much you would make
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as a creator all right then where do we
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start let's go with
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revenue share this number does not
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reflect youtube's cut of the
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advertising yes that's right folks
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youtube has a platform to maintain and
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profits to earn so what they're gonna do
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is take a percentage
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of every single cent you earn through ad
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revenue
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whether you agree with this or not is a
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topic for the comment section
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but the standard agreement for revenue
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sharing is a 45-55 split
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meaning that for every dollar you earn
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in ad revenue
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you keep 55 cents while youtube takes
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the other 45 cents
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and this figure as seen in youtube
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analytics does not reflect
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that revenue share your real cpm would
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look
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more like this and on top of this if you
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are part of an mcn
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it doesn't factor in any of their
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revenue share next up
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is estimated playbacks just because you
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have monetized your channel
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does not mean that every single view has
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adverts placed against them
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in this example just under two-thirds of
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the total views
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have been monetized and so because of
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this you can't just say to yourself
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that you're going to earn ten dollars
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for every thousand views
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it's probably more like ten dollars for
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every 1
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317 views but that doesn't even include
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youtube's ad revenue share man this is
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getting complicated
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of course the moment you monetize your
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natural instinct is to just
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turn everything on from sponsored cars
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to non-skippable middle ads
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but what does that actually mean in
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terms of cpm well you can actually find
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that out by going to the add type filter
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in advanced youtube
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studio analytics as you can see there
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can be a huge difference between
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cpms typically video ads will attract a
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lot higher cpm
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compared to display or bumper ads
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because well
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they're a lot more noticeable and
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annoying now obviously
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more adverts per video means a higher
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cpm especially if your video
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is longer than eight minutes as that
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allows you to insert
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mid-roll ads but be aware of a tipping
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point between
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tolerance and annoyance every advert
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you place on a video creates a barrier
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between
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your content and your audience i mean
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let's face it
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we're all youtube viewers and typically
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we want to see
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as little ads as possible but at the
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same time we know that they
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nourish the creator economy typically if
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you just
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tick all of the ad boxes youtube will do
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a very good automated job of placing the
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adverts where they need to be
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but if you go manual really be
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considerate about where you're placing
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your adverts all right now we've talked
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about all of the ways your content can
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be monetized
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but there are one or two exceptions that
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you need to be aware of
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if you're creating content on the
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fringes
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believe it or not youtube content made
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for kids somewhat falls into this
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category thanks to youtube getting in a
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lot of trouble a couple of years back
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when they collected data on children
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and they shouldn't have been doing that
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they received a 170 million dollar fine
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basically everything you do as an adult
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on youtube
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is documented and analyzed and with all
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of this data
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whenever you watch a video youtube will
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specifically target you with almost
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personalized ads ads
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that are designed to prey on your wants
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your needs your desires
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even your fears and to be clear this
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isn't just youtube that's doing it
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it's the entire internet i mean not that
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i want to scare you off the internet or
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anything but you should really watch the
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social dilemma
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on netflix if you can it's fascinating
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stuff now having said all of this
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when it comes to children this is what
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youtube definitely
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cannot do personalized targeted ads
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and because of the very limited data
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youtube can collect about kids
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advertisers can't target their adverts
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as much as they would like
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meaning the adverts are less valuable
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ultimately reducing cpm
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on the opposite end of the spectrum we
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have self certification
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when you first monetize content you will
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likely need to answer these questions
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about your videos the reason for this is
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because
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some forms of content may limit the
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types of ads that appear
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on your videos some stuff like mild
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profanity
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will have no impact whereas highly
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shocking content
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most definitely will so obviously many
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brands are not going to want to
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advertise their products and services
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on content that contains the things
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listed in that self certification
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because of that
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you may receive lower cpms now of course
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there may be the temptation to just
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lie on this form but that is the last
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and worst thing you should be doing
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that's because youtube doesn't take your
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word for it at least to begin with
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youtube's automated systems will review
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your content
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but as you correctly self-certify more
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of your videos
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your rating accuracy will increase
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meaning your content is less likely to
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be mislabeled with
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limited ads in the future now to someone
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who just wants to make money on youtube
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these checks
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could be seen as nothing more than an
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obstacle to financial gain
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but these checks and balances are here
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for
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everybody they protect the viewer the
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advertiser
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and indeed you the creator because in
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the past
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bad actors have taken advantage and
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manipulated parts of youtube
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which have resulted in these checks and
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balances and also
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remember what you're doing here you're
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entering into a business relationship
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with youtube do you really want to try
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and lie and deceive them
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it's just not going to be a healthy and
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long-running business relationship is it
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youtube has a ton of information about
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ad policies on their support pages by
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the way i've linked them all below in
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the description
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just underneath the light button so
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those are the basic
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complexities of cpm but to be honest
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we've only just started that's because
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not all cpm
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is treated equal some channels get this
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whereas others get this let's try and
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answer
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why well let's start with geographic
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location the average american has more
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disposable income than the average
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indian
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this leads to different products and
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services being advertised likely of a
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higher value leading to more expensive
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ads and higher cpms people in the us
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age between 35 and 55 generally earn the
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most and spend the most money
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which again may lead to higher cpms for
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ads targeted towards
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that age group spending on health care
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between the age of 1 and 64 is dwarfed
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by the 65s and over
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35 to 55 year olds spend the most money
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on
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food at home now i could continue to
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scour the internet to find
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random facts about who has the most
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money and spends it on what
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but here's the thing youtube essentially
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knows
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the value of every single user on the
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platform
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and advertisers know exactly how much to
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spend
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on each of those viewers youtube knows
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that somebody in college
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who watches gaming content has a lot
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less disposable income
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than a 40 year old who enjoys travel
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vlogs all of which
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brings us back to this a sample of some
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of the typical cpms for different niches
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which as you can see from country to
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country vary
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greatly by all means pause the video and
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take a closer look if you want to now
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but the general trends suggest that
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health business investing auto reviews
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real estate insurance and online
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marketing
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are the places to be when it comes to
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earning potential
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from ad revenue alone on youtube now on
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top of the
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geographic location and the demographics
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of the viewer
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as well as channel niche you also have
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to consider seasonality just as an
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example
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cpms for tech channels go through the
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roof as we approach christmas
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because it's the gift buying season and
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people are making purchasing decisions
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when they're watching tech content
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however the moment we leave the holiday
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season
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cpms tank on those channels for a couple
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of months but on the other hand
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we're now into the new year's resolution
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season
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so food and fitness channels see their
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cpms right
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also from an advertiser's perspective
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you have to look at this from an
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inventory point of view there are
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countless
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gaming channels so advertisers can pick
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and choose
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who they want and they don't necessarily
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have to spend that much
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doing it because there's so much
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availability for those advertisers
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whereas if you're the only channel on
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youtube that reviews
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bed mattresses then you only need a
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couple of hundred views to get
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unbelievable cpms in short if your
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passion in life is to earn lots and lots
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of money
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beyond anything else then you'll be able
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to make content
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on those topics that earn the high cpm
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but for a majority of us
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it's simply not the case ultimately for
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most creators
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you want to share your passion for a
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topic that's going to build
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an audience around and because of that
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you don't really have
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that much control over your cpm and even
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then
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the amount you earn from youtube ad
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revenue can change at the flick of a
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youtube switch as a first milestone ad
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revenue and cpm
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is nice but ultimately in the long term
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to turn your youtube channel into a
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business ad revenue cpm
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is a small icing on the cake for most
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creators
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your aim should be to wean yourself off
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of ad revenue
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as soon as possible because essentially
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youtube has all the control
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there are many other sources of income
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that will bring you in so much more
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money
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and better yet you'll have more control
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over those sources of income
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ad revenue and cpms are nice because
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essentially they're automatic you don't
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have to do anything
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it's convenient but with a little bit of
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business acumen
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and some efforts you can easily 10x your
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youtube
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income and also to the left
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of cpm in the youtube analytics there is
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something called
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rpm which is to be honest a more
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valuable figure and if you want to learn
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more about that check out the video over
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here but of course no vid iq video would
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be complete without the code word
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show me 55 percent of the money
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