How Much Does YouTube Pay You for 1 Million Views?
Did you know that ¾ of adults in the United States say they use YouTube? With such a huge segment of the population using the platform you would think all major YouTubers are millionaires. Keep reading to learn how much does youtube pay you for 1 million views!
While some creators fall in this category, it’s a long shot from the truth. So, exactly how much does YouTube pay you for 1 million views? If you want to learn the answer to this question, and more, you’re in the right place.
In this guide, we’ll teach you everything you need to know about how to make money on YouTube. That way, whether you’re a YouTuber or a business, you’ll have a better picture of where your money’s going. Let’s get started!
How Much Does YouTube Pay You for 1 Million Views?
There is no easy answer to this question. That’s because YouTube doesn’t provide official information regarding how much it pays creators for ad revenue.
However, there is still anecdotal evidence and case studies that take a close look at this question. And the answer isn’t nearly as high as you think. We got our information from a case study performed by StandUpBits.
StandUpBits is a YouTube channel that was started by Josef Holm and Claude Shires. The channel acquired an archive of more than 3,500 different comedy clips.
They spent around $25,000 editing to get the clips down to a usable size. When they began uploading them their site quickly made it to the coveted one million views within a week.
So, how much money did they make? AdSense, which is the ad revenue-sharing service that YouTube provides, paid them $2,000. Far from getting rich, the money they made from ads barely put a dent in the labor they put into the effort.
If you’re looking to make millions off YouTube ads, you’re going to be disappointed. However, all is not lost.
The affordable nature of advertising on the platform means there are always plenty of businesses that want to feature their specific YouTube ads.
And, as we’ll see, there are other ways that you can make money through a popular YouTube following. But, before we dive into that let’s take a closer look at how YouTube’s ad revenue system works.
How Do You Qualify for Ad Revenue?
Before you qualify for YouTube ad revenue there are a few conditions that must be met. First, you need to have at least one thousand subscribers.
Second, your videos must have an accumulated 4,000 hours of watch time on them. What’s more, this needs to be from the last twelve months.
What’s more, YouTube is getting a lot stricter about what type of content is considered “ad-friendly”. They’re doing this mainly so that advertisers don’t get upset over controversial content in a specific video.
You can learn more here about the advertiser-friendly guidelines that YouTube provides. But basically, you should avoid any of the following:
- Bad language
- Shocking content
- Dangerous acts
- Hateful content
- Content with recreational drugs
- Content with tobacco
- Content with firearms
- Content with controversial issues
- Demeaning content
- Sensitive events
- Content that’s not meant for kids or families
- Adult content
It’s not you can’t post videos with this type of content in them. But, if you do, then YouTube will likely limit monetization or provide it with no ads at all.
Understanding CPM and CPC
Before we dive into the factors that affect ad revenue on YouTube it’s important to first understand two terms: CPM and CPC. Let’s start with CPM which stands for cost per mille.
This can also be taken as cost per thousand impressions. Essentially this is the cost that advertisers need to pay YouTube for every 1,000 impressions that their ad receives before or during your video.
In other words, your CPM is a metric that YouTube uses to tell advertisers how potentially valuable your content is. As we’ll see, views aren’t the only thing that goes into making a high CPM.
Factors like demographic can also be important. For example, let’s say a gaming-related company wants to advertise on YouTube. They’ll likely pay more for a channel that specializes in video games and has a demographic that enjoys them.
That’s because their ad is more likely to be effective. If you want to learn more about CPM, make sure to check out our full guide here. The other type of metric available on YouTube ads is CPC or cost per click.
This metric doesn’t gauge whether the user saw the ad, but rather if they engaged with it. If they click on the advertisement, then the video creator gets paid. There are also cost-per-view metrics.
This is for YouTube ads that are skippable. If the person watches them completely, then the creator gets paid.
Also, remember that not all of this money goes to you. Sadly, you will need to split 45% of your YouTube profits with the streamer.
Factors That Affect Ad Revenue
We briefly touched on how certain factors, like demographics, can affect your ad revenue when using a CPM model.
In this section, we’ll discuss these factors in more depth. That way, you get a better criterion for how much YouTube decides to pay you for a video.
1. Number of Video Views
As you can probably guess YouTube views are the number one criterion that affects how much money you will make from advertisers. The more people that watch your video means more eyes on the advertisements.
So, businesses will pay you more to get access to your audience. The largest channels typically appeal to businesses that have a broad target audience demographic.
Also, remember that it’s not just your video views that count but also the number of subscribers you have.
2. The Quality of Your Video
Viewers are drawn toward videos that are well produced. That means good camera work, sound design, and editing.
It’s also helpful if your videos are informative or entertaining. On the flip side, if all of your channel videos are shot on an iPhone, then you might not attract as many advertisers.
3. The Location of Your Video
The location also plays an important part in how much money you make on YouTube. Like most places, rates rise when you’re in a large city. The same goes for YouTube ads, except it’s with regions and countries.
North America is one of the more popular markets so advertisers will pay more to advertise there. Sadly, that means that less popular markets might find it harder to get similar compensation for their videos.
However, things aren’t all easy for North American video creators. Because it’s so popular that means that there is a lot of more established competition. So, it can be harder for new players to break into the scene.
4. Your Audience Demographic
We’ve already touched on how your audience demographic can affect your CPM. In a nutshell, it’s because it allows advertisers to target specific demographics that might want their products.
For example, if a business wants to target gardeners, then it could advertise on a plant video channel.
5. The Industry You’re Involved In
Certain industries are more established than others on YouTube. Since these industries had time to figure out how things their videos are often more successful. Just take the music industry.
It was discovered early on that music videos are very popular on the platform. That’s why to the day music channels tend to make more money than less established ones like the food industry.
Ways Besides Ad Revenue to Make Money on YouTube
As you can see, it’s pretty hard to start making the big bucks when you rely on ad revenue for your YouTube profits.
But, before you call it quits remember that there are other revenue sources you can take advantage of if you’re a popular creator. In this section, we’ll go over the other ways you can make money using a popular channel.
1. Getting Sponsored
If you’re lucky and your channel is popular enough a brand might reach out to you about sponsorship. Most of the time this will involve doing an in-video ad read, either at the start or in the middle.
However, it can also involve using some of the latest YouTube trends. For example, YouTube recently introduced live streaming. So, some sponsors might want you to do live events, like shopping or unboxing.
The best thing about this type of sponsorship is that unlike ad revenue you don’t need to share a percentage with YouTube. However, you will be required to negotiate your rates and deal with the brand on your own.
And, sometimes they might not be happy with your content or the way you deliver the integrated ad. So, it presents some new challenges for creators too.
2. Affiliate Links
Affiliate links are a great way for channels that deal with a lot of products to make money. For example, you’ll often find a lot of affiliate marketing in beauty videos and gadget channels.
You promote a product in your video and include a link in the description. Then, you get a commission for any viewers that follow the link and purchase the product or service.
However, there is a caveat. You need to put a disclaimer in the video that you’re getting paid for every purchase. And, this might cause you to lose support from followers that don’t appreciate this type of content.
3. Offering Merchandise to Fans
Many YouTube creators have dedicated fan followings. If you fall in this category, then consider starting a merch line. T-shirts, coffee mugs, and other collectibles are just some of the ways you can make a profit.
Best of all it’s free marketing if any other fans see the shirt and recognize it. Just make sure you team up with a merch supplier that you know you can trust.
Otherwise, quality issues might come back to haunt you with lost subscribers and angry comments.
4. YouTube Shorts Fund
YouTube Shorts are quite similar to the Instagram or Snapchat story features. There are short, vertical videos that play when you access the YouTube mobile app.
These videos come with a maximum duration of sixty seconds. So, how can you make money off of them? Thanks to the YouTube Shorts Fund. Between 2021 and 2022 YouTube plans to distribute $100 million to YouTube Shorts creators.
However, there are a few qualifying criteria. First, you need to be at least thirteen years old with a short that was uploaded within the past one hundred eighty days.
What’s more, you need to follow all of YouTube’s community/monetization standards. Finally, it needs to be unique. No stealing ideas or using movie clips. As long as you meet these qualifications you can start making money.
5. Patreon and Other Platforms
Many YouTubers take advantage of paid content sites like Patreon. Here, your fans can subscribe to access bonus content that’s not available on the YouTube channel.
Typically this involves behind-the-scenes shots, early access, and sometimes even personalized videos. Ultimately, the type of exclusive content you offer on them is up to you.
Want to Advertise on YouTube? Contact Media Shark
We hope this article helped you answer the question, How much does YouTube pay you for 1 million views? As you can see, YouTube is a rich marketing canvas for businesses to advertise on.
But, at the end of the day, your campaign is only as strong as the digital ads you make. That’s why it pays to hire a professional like Media Shark when crafting a YouTube marketing campaign.
We work with you to create ads that are sure to grab people’s attention. Plus, we track results to adjust the strategy as it’s needed. So, if you’re ready for the digital marketing services that you deserve, contact us today.