Youtubers’ remuneration


Ever heard about PewDiePie, Michelle Phan or Olga Kay? These famous YouTubers managed to make money out of their videos. How is the remuneration of YouTube videos settled and how to maximize it?

When asking about the remuneration of a video, the typical answer is $1000 per view. But this is not correct. Indeed, some factors must be taken into account to calculate the remuneration of a video.

As remuneration on YouTube is based on advertising, the salary will depend on the remuneration model used by advertisers. They can either pay based on the cost per click (CPC), or on the cost per view (CPV). The CPV or CPM indicates how much advertisers pay for a million views. Each ad unit has a specific CPM and ad units can of course be cumulated if you have more than one ad unit on your post/video. Typical CPM varies from $0.50 per thousand views to $7 or $12 per thousand views.

Knowing your CPM or CVC, you can easily calculate the total revenue you can expect according to the number of views or clicks your video has reached. YouTube works with Google AdSense, which is a program that allows publishers to generate revenues by placing ads in their content, in this case videos. AdSense takes 45% of the income of the Youtuber.

How to boost your remuneration?

Advertisers can be interested and wanting to pay the YouTuber to have his product mentioned in the first 30 seconds of the video.

What you should also know is that advertisers are more interested in specific target audience. This is the reason why YouTube is now working with the video ad format TrueView which allows for the viewer to choose which ads he prefers to watch. There exist 4 types of TrueView ads: In-stream, In-search, In-slate and In-display depending on where the ad appears on your screen. Trueview allows for advertisers to better target the audience it wants to reach and to pay only for viewed ads or when the 30 first seconds have been watched.

References :

Videopower, 2015. ‘How many views to make money on YouTube?’ http://videopower.org/how-many-views-to-make-money-on-youtube/ Last visited : 27 September 2015

Business Insider UK, 2015. ‘The biggest stars on YouTube make huge income… yet they can’t keep most of it’ http://uk.businessinsider.com/money-youtube-stars-actually-make-2014-2?r=US&IR=T Last visited : 27 September 2015

Fast Company, 2013. ‘ A million YouTube views won’t pay your rent but tubestart could help’ http://www.fastcompany.com/3018123/a-million-youtube-views-wont-pay-your-rent-but-tubestart-could Last visited: 27 September 2015

Wikipedia, 2015. ‘ AdSense’ https://en.wikipedia.org/wiki/AdSense Last visited : 27 September 2015

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One response to “Youtubers’ remuneration”

  1. didriklasanow says :

    Really interesting to know how does the remuneration on Youtube works. In this comment I just wanted to add some information. First, a video may not necessarily be remunerated. In fact in order to be remunerated for your video, you should be the creator of all its content (image, sound) or use royalties-free contents. Nevertheless it is still possible to get money from your video if you do not own all the content of it. In fact, gaming Youtubers such as PewDiePie generally use video games that are not royalties-free. In order to get money from these videos, Youtubers sign contract with networks. Around 15% of the remuneration of the video goes to the network. A share of these 15% will directly go to the content owners. Thus it is still possible to get money if you are not the owner of the video. On the other side, if you don’t have signed a network contract and use content that is not yours, you can’t ask for remuneration. If you still do it by saying it is yours, Youtube’s algorithms will check if you are well the owner of the content. If they see you’re not the owner you’ll receive a warning (and of course your video won’t be remunerated). After three warnings your Youtube account will be deleted. My references are not based on typical scientific researches but on a video of a French Youtuber “Le Rire Jaune” who has more than 1.000.000 followers.

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