Have you ever wondered how much YouTube pays per ad
view, the fact is that there is no definite amount. The ad revenue system of
YouTube is complicated, and it depends on several factors such as the place
where the viewer is located, the device that the viewer is watching, the niche
of the content, and even the duration of watching the ad. Nevertheless, there
is one rule that is always constant, and that is YouTube is a revenue sharing
platform, with creators earning 55% of the ad revenue, and YouTube earning 45%.
The price that creators typically charge, ranging between $0.005 and $0.05 per
ad view, already includes their 55% share following the deduction by YouTube.
YouTube now only compensates creators when an ad
view qualifies, which occurs when a viewer watches an entire ad or at least the
first 30 seconds of a skippable ad. When a viewer skips the ad before 30
seconds, such an impression does not typically count towards earnings. This
implies that not all video views are revenue generating, only monetized ad
views are.
The amount of money paid per ad view is highly
dependent on the geographical location, as advertisers pay more to advertise to
the population in countries with more consumer spending and competition of ads.
As an illustration, the creators whose audience consists primarily of the
United States, Canada, or the United Kingdom are likely to receive
significantly higher earnings per ad view than those whose traffic is comprised
of developing nations. YouTube is able to charge between $0.005 and $0.05 per
ad view in such high-value regions, which equates to $5 to $50 per thousand
monetized ad views (CPM).
The other significant determinant of earnings is the
kind of device that viewers watch. Mobile users are also likely to bring in
more revenue as mobile advertisements are more likely to work, and they will
have better engagement and targeting. In comparison, advertisements on smart
TVs, tablets, or laptops may have a slightly lower payout due to ad-skips and
format restrictions.
In order to put this into perspective, we will
assume that a creator receives one million monetized ad views, that is, all one
million views had an ad that was viewed at least 30 seconds or to the end. At
the bottom of the scale ($0.005 per ad view), the creator would make
approximately $5,000. They may earn up to $50,000 at the upper end ($0.05 per ad
view). These figures are already the share of the creator, and there is no
necessity to deduct the 45% that is paid to YouTube.
Nevertheless, it is also necessary to realize that
even one million video views do not guarantee any income. When a video has one
million viewers, and no one of them views qualifying ads (e.g. does not watch ads
longer than 30 seconds or has ad blockers) the video creator receives no ad
revenue. YouTube does not equate popularity and monetization.
The niche is one of the reasons why some channels
are always getting higher than others. Advertisers will pay more to specific
topics that are closely related to their target customers. As an illustration,
financial, technological, educational, and business channels are more likely to
command a higher CPM rates since the brands in these areas are ready to pay
more to access audiences that are likely to buy their products or services.
Conversely, entertainment or lifestyle niches can be more widespread but tend
to receive lower advertiser bids per impression. Thus, the niche of a channel
has a direct impact on the extent to which it can make when it has the same
number of views as another channel.
Video length is also a major factor in the overall
earnings. Longer videos (more than 8 minutes) may have several ads (pre-roll,
mid-roll, and post-roll), which leads to the increased number of ad impressions
per view and, consequently, the increased total CPM. This is the reason why
long-form educational or commentary video creators tend to receive larger
payouts than creators of shorter videos.
Naturally, there exist numerous other factors that
influence the level of earnings of a creator through ads. The CPM of a channel
can vary every month due to seasonal trends, viewer engagement, availability of
ad inventory and regional ad demand. Most creators claim to make an average of
between $5 and $15 per thousand monetized ad views in the normal
circumstances, yet channels with the correct mix of location, niche and video
length can easily surpass the scale.
To conclude, YouTube does not charge a specific rate
per ad view. Rather, it gives creators 55% of the total ad revenue, which
typically ranges between $0.005 and $0.05 per ad view, based on location,
device, niche, and viewer engagement. Niche advertising, where the advertiser
has a specific niche like finance or technology, is frequently the cause of
high CPM rates, and longer videos receive higher rates since they can have
multiple ads. Nevertheless, a video with a million views will not make any ad
revenue unless the viewers watch the ads until they can count. The more
interesting your audience and the more advertiser-friendly your content, the
greater your potential YouTube revenue.
