YouTube has evolved into a giant ad revenue platform since its inception in 2005, owing to the millions of content creators, or YouTubers, who impart their expertise in their respective fields to audiences who wish to be informed or entertained.
With billions of viewers, it has become evident that the exponential growth in views would be a good take-off point to push advertisements for people based on their interests.
But often, these ads have been seen as annoying, disruptive, or “selling out.” Despite the irritating presence, these ads are part of the income YouTubers earn.
Should you watch YouTube Ads?
Most YouTubers are putting in great effort to produce content, sometimes turning it into their fulltime job. This is boosted by ad revenue and sites like Patreon, where fans can donate to keep the YouTube channel going!
Because it is never certain if you can make a stable income online, YouTubers need their viewers more than ever to help them stay afloat.
If you have a YouTube channel that you love to watch, consider supporting them and their work as much as possible and watch those ads!
How Much Does an Advertiser Spend to Put Ads on YouTube?
Shoestring budget ads can go as low as 10 cents per click or view, but there are other factors to consider, which may increase or decrease the costs.
- Bid Strategy, or the daily or total budget of an ad
- Competition, or the ads which also want to take the same slot
- Ad Relevance, or how connected the video is to your ad
- Ad Format, or the kind ad to be placed
These four factors have a way of increasing or decreasing the required amount needed to have an ad inserted in a video.
It is also worth noting that higher budgets do not automatically equate to sure slots. YouTube values the relevance of an ad over budgets.
So, if an ad is not related to the interests of the viewer, it would be scrapped in favor of lower budget ads that are more relevant.
Who is Getting Paid For the Ads I See on YouTube?
Every ad that is aired before, between, or after the videos we watch is money paid by advertisers, which is split between YouTube and YouTubers.
YouTube divides this revenue on a 55/45 term: YouTubers get 55 percent of every ad payment, while YouTube gets the remaining 45 percent.
YouTubers cannot withdraw their earnings automatically. The income generated by a Youtuber should reach at least 100 dollars before YouTube transfers this balance to the nominated remittance platform.
It should be worth noting that income from YouTube ads is also subject to taxes. Should a YouTuber’s revenue from ads reach 600 dollars a year, Google will issue a 1099 form for tax.
Are YouTubers Losing Money If I Skip the Ads?
YouTube does not count skippable ads as a view, which denies YouTubers of revenue.
That being said, you need to think twice about clicking that skip ad button or installing an ad blocker to watch videos without minimal interruption. Every skip you make is income lost for your favorite Youtuber, who might use his channel to put food on the table.
Once a Youtuber realizes his efforts in creating content are no longer sustainable, he or she might set this aside in favor of other income opportunities.
Do YouTubers Make Money if I’m Using an Adblocker?
Even if a Youtuber designates ads in the video you watch, ad blockers, such as AdBlock, hides these ads from you, resulting in no actual viewing.
Despite the assignment of an ad to a video, Youtubers will not get a single cent for the ads permitted in their videos, since the ad was never viewed.
Do YouTubers Make More Money if I See the Whole Ad?
YouTube’s basis for determining ad view was when the ad was seen as a whole, or for at least 30 seconds, whichever is shorter.
While this may be a fixed condition, the amount each Youtuber earns is still dependent on the value of the Cost per Mille, or cost per 1,000 views.
CPM value varies from one Youtuber to another. It also depends on the average revenue a channel has generated for a specific period.
The value of CPM is derived by dividing the marketing cost (the budget for the ad) by the estimated audience and multiplying the result by 1,000.
If the marketing cost is 32,000 with an estimated audience of 2,500,000, then the CPM would be 12.80 dollars. A Youtuber then gets 55 percent or 6.90 dollars per 1,000 views.
Should one video reach a million views, he stands to get 6,900 dollars from ad revenue.
How Many Subscribers Are Needed for a YouTuber to Earn From Ads?
A Youtuber needs at least 1,000 subscribers before qualifying for monetization for content. It is important to note that Youtube does not pay for increases in subscribers.
While having more subscribers helps in earning through videos, the number of subscribers is not directly proportional to the income.
Remember that ad revenue is still dependent on whether a subscriber thinks a video will be interesting, and whether he or she will press the skip ad button.
If a Youtuber has half a million subscribers, but 60 percent of its viewers are impatient, that would equate to 300,000 lost views.
Should you find an interesting channel with subscribers below a thousand, consider subscribing to that channel. Doing so will help the YouTuber convert his account into a revenue stream in the future.
What Can I Do for Ad-Free YouTube While Supporting Creators?
If you cannot stand having advertisements every time you watch your favorite channels, you can opt to subscribe to YouTube premium.
Youtube premium gives subscribers an ad-free experience for a monthly fee of 11.99 dollars. A part of the monthly fee for the service goes to YouTubers.
Aside from an ad-free experience, this premium service allows subscribers to:
- Download music and videos for offline streaming, similar to Netflix and Spotify
- Play videos in the background, while tending to another app
You can try YouTube Premium for a month before deciding to opt into the service.
What Can I Do if YouTube Premium is a Bit Steep?
Bottom line: your favorite YouTubers need ads to play on their viewers’ screens for them to continue their channels.
Allowing these ads to play is your commitment to helping them sustain their passion. If you are a fan of many creators, it is better to let the ad play and help support them!
However, if you don’t want to view ads before your videos, consider getting an adblocker. That way you can avoid unnecessary ads and still enjoy your content.