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But, there are four things that can help you get there:. Having independent sponsors support your work on YouTube is the most lucrative, and rare, form of monetization on the platform. There is no cut and dry way to have sponsors for your film, other than just having a large number of views on your videos. Essentially this form of advertising cuts out the middleman YouTube and gives you the potential to make more money from advertising on your content.
As mentioned before, an AdSense account is required to become a YouTube partner. This is a platform where companies can buy ad space and YouTube can place their ads on videos as they see fit. Money is generated on a cost-per-click or a cost-per-view basis. This generally means little to no revenue for most YouTubers, but for those with thousands or millions of viewers it can add up to substantial income.
YouTube makes no guarantee of income under its partner program. Despite the bleak profitability outlook , Google kept investing in YouTube. There were the operational investments that were needed to deliver all that content at speed, and there were payments to the content creators in the partner network. Soon, every uploader could have a cut of the ad revenue a video might produce. The advantage for Google was that the user-uploaded content really only cost the company in terms of infrastructure maintenance.
The idea seemed to be that the cost of maintaining YouTube would drop as technology improved and more video content could be monetized through ads and market pricing.
Thanks to some innovation within the ads themselves, the market for the ads has improved. YouTube overlays allowed ads to populate videos at different points of the viewing rather than just having a pre-roll ad, and they followed the embedded video around the web. Even with better ads, however, as of May , the revenue was still not enough to pay for the site. YouTube approaches video advertising through an opt-in ad program named TrueView.
TrueView includes two types of ads: in-stream and video discovery. With in-stream ads, the viewer only has to watch the first five seconds and then can skip the rest of the ad. The supplier pays only in case the user watched over 30 seconds or clicked on an entity on the screen related to the ad.
Video discovery ads are advertisement videos listed on the page along with other content and charged for only when the user clicks on them. According to a Alphabet financial report , TrueView ads were one of YouTube's revenue growth drivers for the quarter. YouTube is not selected as a separate reported entity in the company's reports and is a part of Google websites segment.
Google has a few different options for expanding YouTube. YouTube Red that was probably intended as a competitor to Netflix, also includes original shows and movies. Around the same time, the company launched YouTube music app, which is free with ads, but offers an enhanced music experience if a consumer is simultaneously subscribed to YouTube Red. Another move is to crack down on in-video sponsorship, which gives YouTube no revenue.
The site is hoping to force brands into existing ad channels rather than have their YouTube stars work outside deals with the brands directly. The big challenge for YouTube seems to be getting more people to use the site directly. Too many viewers are apparently watching embeds on other sites or dropping in for the odd video without clicking around and browsing further.
All this is not to say that YouTube is in trouble. There are also some secondary benefits to YouTube for Google. The company pulls in more user data the longer users stay in the Googleverse, which includes YouTube, and that data helps it market more efficiently across all its platforms. Google can afford to be patient while YouTube figures out how to make a profit. Top Stocks. Company Profiles. Building Credit. Your Privacy Rights.
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