How much is my video going to make on YouTube? That’s a question asked by nearly all of our clients and with the complex and sometimes contradictory information on the internet, the answer is tough to decipher. The amount of advertising revenue a video generates on Youtube is determined by ad impressions and CPM, the amount generated per 1,000 ad impressions attributed with a video. In order to understand how YouTube monetization works let’s look a bit closer at these two factors.
The biggest misconception about YouTube monetization is that earning are based on the view count users see below their video. People hear they will usually be paid x amount per 1000 views and they assume that applies to all the views reflected on their YouTube watch page. Unfortunately, that isn’t the case. Revenue is generated by the number of times an ad displays on the video, commonly known as an impression. The number of impressions is always fewer that the number of views and often much lower. In an interview with the New York Times, David Burch, a TubeMogul spokesman, had this to say about the impression rate for videos on YouTube “It varies a ton, but it wouldn’t usually be more than half, and for many partners it is more like two out of every 10 views will have a video ad,”. That means that you can expect an ad impressions to be somewhere between twenty and fifty percent of the view count you see below your YouTube video. That’s the first part of the equation, next how much can you expect to get paid for those precious ad impressions, leading us to:
So what’s CPM? It is the cost per one thousand ad views on YouTube and you can read ten articles on CPM rates and probably not see the same number twice. ReelSeo.com pegs the number somewhere between $0.30 and $2.50. That big range exists because CPM is based on a number of factors including the content, the viewer, viewer location, the ad type and the advertiser. Pre-roll ads (the short commercials that play before a video) do generate higher CPM’s than banners (the small ads that show in the bottom portion of your video), so if you see pre roll ads on your video you can expect a better CPM.
Now you have an idea of what to expect, but if you’ve never monetized a video on YouTube, you still have to turn on monetization, apply for an Adsense account and link it to your YouTube account. With all these steps you could be waiting for approval while your video goes viral. That’s one reason it pays to work with ViralHog, we can activate advertising on your video with the click of a button. Plus, through our content management account we have the ability to claim and display ads on all of those unauthorized copies others post on YouTube giving your earnings a boost.