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.
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