Much to the chagrin of traditional media, more advertisers are shifting their attention to YouTube. YouTube ads will help advertisers reach a targeted demographic. The platform also benefits content creators who receive payment from viewed ads.
If you want to learn how to make money on YouTube, you must first create a channel that attracts a loyal following. After, advertisers will buy ad space on your channel. This article will show you what it takes to money on YouTube. Let’s explore.
What are Youtube Ads?
YouTube ads derive from Google Ads. Since Google owns YouTube, the Google Ads program extends to the video platform. YouTube ad money derives from the Google Adsense program. Goole Adsense is an advertising platform that allows marketers to reach audiences via text, video, or image.
How do Youtube Ads work?
YouTube usually shows ads to viewers before a video begins. Conversely, YouTube ads may appear while the video is playing, otherwise known as in-stream ads. If a viewer watches the video, the content creator receives money from the ad.
The advertisers also pay if a user watches the video in full. The ad length can last anywhere from 15 seconds to over five minutes.
Advertisers can pay for different types of ads, which breaks down as follows:
- Non-Skip Ads: This ad feature forces users to watch an entire video before the video begins. Non-skip ads can also appear in-stream or after the video stops playing. Since advertisers must pay whenever non-skip ads appear, this option is popular among companies with larger advertising budgets.
- Skip Ads: This ad choice allows viewers to skip an ad after it plays for 5 seconds. Advertisers won’t pay for the ads if the user stops watching after 5 seconds. However, the advertiser will pay for the ad if it plays from beginning to end.
When it comes to non-skip ads, content creators will receive advertising money because viewers must watch the entire ad. Further, non-skip ads come with some ask, as most viewers don’t have the patience to sit through an entire ad. If you’re starting a YouTube channel, the skipped ad versions will prevent viewer frustration.
For the most part, save the non-skip ads when you have a loyal audience that doesn’t mind sitting through full ads. For skip-based ads, creators don’t receive ad money if a viewer forgoes watching the video after the 5-second mark.
Outside of video ads, advertisers can also market via other means, such as:
- Display Ads: Display ads usually appear to the right of the videos. Advertisers pay for the ad if a user clicks on it; therefore, content creators receive the ad revenue.
- Overlay Ads: You’ll find these ads at the bottom portion of the video. This ad is common on laptop and desktop computers. Like display ads, advertisers pay only when a viewer clicks on the ad.
Overall, video makers on YouTube can make a substantial sum if they gain a large number of views.
Can you make money on YouTube consistently?
Many YouTube creators can create videos and generate a full-time salary. This is especially true if you have a large audience.
Example: If you garner 50,000 daily views, you can make $50,000 in advertising revenue each year. In many cases, you can earn more than $50,000 annually.
Before receiving ad money, you must first qualify for the YouTube Partner Program. Additionally, you must meet several qualifications:
- Receive 4,000 watching hours within a year
- Have over 1,000 individual subscribers
- Have a Google Adsense account that’s linked to your YouTube account.
- Adhere to YouTube’s monetization policies
You can lose your monetization status if you fail to follow YouTube’s guidelines.
Therefore, read the terms and conditions to know the current regulations. You should also check the guidelines regularly, as the standards are subject to change.
Making YouTube money is achievable, but the process will take time. Don’t expect to make YouTube money overnight.
You must devote time to building an audience. Most importantly, create quality content that helps your channel grow.
How much do YouTube Ads cost?
YouTube ads will help advertisers manage their budgets because they only pay for ads watched in full. Overall, a YouTube ad can cost between $.0.10 to $0.30 per view. Therefore, access to 100,000 viewers would cost around $2,000.
YouTube’s ad program also allows marketers to establish a daily budget.
- Example: A good average daily budget is $10 a day. This budget can help you reach 100,000 viewers. Moreover, you should establish a maximum amount you’re willing to pay daily to stay within budget.
Your cost will also depend on other factors, such as video quality, campaign goals, and audience type. Audience targeting requires extensive knowledge about your demographic. You must know their interests, age range, gender, income level, among other factors.
From there, you can target your ads to the right audience. To maximize your budget, however, you must create valuable content first and foremost.
Most importantly, the content must give them something of value. From there, users will share your video, resulting in more views and advertising dollars.
Are YouTube Ads Worth It?
YouTube ads are worth the energy because YouTube receives tens of millions of views per day. YouTube attracts a coveted demographic: ages 18 to 44. In general, younger people are watching YouTube videos more than conventional media.
From an advertiser’s perspective, the video platform is one of the best ways to reach a targeted audience. From a content creator’s perspective, they can generate a viable living by creating valuable content and building an audience.
Interested in learning more about advertisements? Click here to learn how you can assess the most relevant indicators of your Google Ads campaigns with the best performance evaluation tools.