Whether you’re just starting out or already working with a strong following and viewership base, understanding YouTube ad revenue can be tricky, especially if you feel you’re not earning what you think you should be. Want to know how much money you could really earn on YouTube? Our ultimate YouTube ad revenue calculator will help you find out for sure!
That being said, there is plenty to go around. In 2021 YouTube its creators a whopping $15 billion. There’s no reason to say you can’t get in on that action.
But how do you work out how much you’re actually going to make? And is making money on YouTube even possible anymore?
With our YouTube ad revenue calculator, you’ll be able to work out just how much you could earn. Plus, we’re going to answer some of the most popular questions out there (and give you some advice on how else you can make money from YouTube). Sound good? Keep reading.
YouTube’s Partner Program
If you’re looking at trying to make money on YouTube, then you’re going to need to join the YouTube Partner Program (YPP). This lets users enable monetization for their content. Some of the features of the YPP include ad revenue, deals with advertisers, and overall better visibility within the algorithm.
Additionally, creators will get a certain priority on the app. As long as you create content for YouTube, they’re going to want to help you out. So even though you may not make a fortune right off the bat, there are more benefits than just monetization when joining the YPP.
Visibility is really important when you’re looking at growing your channel, and it helps to have YouTube doing of that work for you. So let’s look at how to go about actually monetizing your videos.
How to Monetize Your Videos
There are three base requirements you need to meet in order to be eligible for the YouTube Partner Program. You’ll need:
- 1,000 subscribers
- 4,000 watch hours (within the last 12 months)
- To be willing to follow YouTube’s rules
Luckily there isn’t much research you’ll need to do to get monetized. If you’ve checked your channel and made sure you’ve handled any outstanding issues then the process is simple. You will:
- Go to your YouTube Studio
- Navigate to the left bar
- Click monetization
- If you’re eligible, there will be a blue button
- Click the blue button!
- Review the YYP terms
- Set up an AdSense account
- Connect it to your channel
- Wait for YouTube to decide
If YouTube denies your application, you’ll be able to reapply after 30 days. This allows you the time to fix anything on your channel that they didn’t like, like videos that violate their guidelines or outstanding copyright claims.
Once you’ve registered for the YouTube Partner Program, ensure you hit the monetization button for as much of your content as possible. You can, of course, do this while your new content is uploading, but it’s better to wait until the upload is complete. By that point, YouTube will have processed your video and tell you if their system found something that might demonetize your video.
Things that can demonetize your video could include adult themes, copyright claims, and extreme profanity.
What Influences Your Earnings?
It could be anything from watch time to location, to your niche, and even the language you speak in your videos. There’s a lot that goes into working out YouTube profits for your videos and it can get confusing.
If you have a well-performing channel, you may find advertisers starting bidding wars to advertise on your page, which is great for you, since it pushes up your CPM.
But hang on, what’s CPM?
CPM vs CPC
CPM stands for Cost per Mille, which is basically Latin for 1,000. For example, CPM advertising is based on the cost per 1,000 impressions something gets. With YouTube, that’s views. So if you’re given a quote based on CPM, it’s looking at the rate for 1,000 views (though these must be greater than 30 seconds) for any ad on your video.
An advertiser working with YouTube will pay at a rate expressed in terms of CPM.
CPC stands for Cost per Click. You may know this as a more traditional way of advertising, or rather, paying for it. YouTube ads that we find around the videos, not in them, are typically charged at a CPM rate.
What Does This Mean for You?
Though you get to choose which types of ads show up on your channel, and you can choose both, the most popular and visible are the ones that come through the videos themselves. It also means the more people engage with the ads in your content, the more you’re paid.
If someone watching your content skips the ad before hitting the 30-second milestone, you won’t get paid for it. Recently YouTube had introduced an unskippable 6-second ad, which obviously brings in more revenue, despite it being lower.
Per 1,000 Views
The calculations we’re going to look at focus on the videos you choose to embed at the start of your video (or the ones that pop up if the video is long enough). It’ll give you an estimated range of earnings based on how many views you get. The actual number varies and is based on several factors, including how popular your channel is, and what Google gets from its advertisers.
Let’s break down the stats a bit.
The average advertisement costs around $7.60 per 1,000 views. Most people will pay a CPM of around $4 to $10, though sometimes it can be as low as $0.10.
So, even though you’ll start earning after 1,000 views, you may get paid more handsomely based on where you are, the language of your video, what time you’re posting (Christmas is a hot season), and how much competition there is for advertising spots.
Earnings per Subscriber
Though a lot of the trade information is hush-hush, it’s fairly common knowledge that YouTube keeps about 45% of its ad revenue. So you’ll receive 55% of every dollar paid. Though you can’t register for YouTube Partner Program until you’ve hit 10,000-lifetime views on your channel.
If every single one of your subscribers watched your video, and you had 1,000 total, you could expect to earn $4.18 per 1,000 views. This is considering the average CPM rate and the 55% revenue you’re paid. It’s only likely that around 10% of a channel’s subscribers will watch a new video, so that number drops significantly.
Video Engagement
With all the above in mind, there’s one major factor we haven’t discussed yet. That is engagement. The one thing that is going to limit how much money you make from ads is human nature! To be realistic, how many ads do you actually watch on YouTube? Apparently only 15% or so of viewers actually watch at least 30 seconds of an ad.
Remember, 30 seconds counts as a view. This obviously depends on the nature of your subject and the kinds of subscribers you have. A loyal fan base may watch the videos purely because it supports you. But, let’s take the average and look at the figures.
For every 1,000 views, around 150 people will watch enough for you to earn money. That’s around $1.14 in revenue, but let’s not forget that YouTube takes 45%. This leaves you with $0.63 net income. This makes it easy to see why people often look for alternative forms of income to supplement their ad revenue stream.
How Much Can You Actually Make on YouTube?
We could say, how long is a piece of string? But in truth, there is some kind of consistency in how much you can earn. Bearing in mind your calculations will revolve around some of the stuff we’ve spoken about already, your niche can also play a part.
For example, if you’re in gaming, you’ll likely see a higher ad turnover since you’re in a competitive market. This has its pros and cons because big niches are saturated, but advertisers will want to work with you if you make a name for yourself.
Breaking Down the YouTube Ad Revenue Calculator
So we’re at the crux of it. Let’s take all the information we’ve looked at and condense it into something that’s more manageable.
We’ll focus on a few landmark goals, like 1,000, 10,000, and 100,000 daily views. Because there are so many variables, each earning set is an estimation.
For 1,000 daily views, you can expect to earn:
- Daily: $1.36 to $3.40
- Monthly: $40.80 – $102.00
- Yearly: $496.40 – $1,241.00
For 10,000 daily views, you can expect to earn:
- Daily: $13.60 to $34.00
- Monthly: $408.00 – $1020.00
- Yearly: $4964.40 – $1,2410.00
For 100,000 daily views, you can expect to earn:
- Daily: $136.00 to $340.00
- Monthly: $4080.00 – $10200.00
- Yearly: $49640.40 – $1,24100.00
We’re sure you can see the pattern emerging. And while it may seem unattainable to hit 100,000 views per day, if you create good content and upload it regularly, you could very well see this kind of growth.
Keep in mind that you’ll likely see the biggest surges in viewership on days you post, so don’t be discouraged if it dwindles in the time between.
Increasing Your YouTube Earnings
Actively encourage your viewer base to watch the ads. Tell them why it matters and how it supports you, but don’t be too pushy. If you educate and encourage your subscribers and break these numbers down for them, they may be more willing to engage with your hard work and support you however they can.
Sponsorships, Deals, and Brands
When you have a larger following, you’ll find it easier to get sponsorships and brand deals. This is where most YouTubers make their money, though the bigger your account, the more you’ll get from ad revenue.
However, unlike the Partner Program, you don’t need tons of watch time and a set amount of subscribers to get these deals. Having a bigger following is obviously helpful, but consistent views and video quality are more important.
Affiliate Marketing
It is absolutely possible to make money advertising affiliate products on YouTube. These are product links that give you a small percentage of the cost of the product. This only happens if the person bought something by using your personal link.
This is called affiliate marketing, and it’s a super easy revenue stream to get into. All you’ll need to do is sign up for affiliate programs (different brands have their own) and get custom links to share.
You’ll earn a commission anytime someone buys something using your link.
For beginners, Amazon Associates is a great program. You’ll get access to hundreds of links to everyday products, but we recommend only offering products you like and use yourself.
Second, always make sure your links are relevant to your content. For example, if you post travel and photography content, a link to a GoPro camera is a great idea.
Channel Memberships
This is a great way to give your devoted viewers exclusive content, as well as extra perks. Think of this as an alternative to Patreon. When your viewers join your membership plan, they’ll get a variety of extra incentives. This can be anything from:
- Loyalty badges
- Exclusive videos
- Private live streams
- Q and A sessions
Memberships are a clever way to get a bit more out of YouTube since you can set your membership cost. Just make sure you’re offering valuable and insightful content. Plus, it should be something they can’t get just from subscribing for free.
Drive Growth Through Marketing
Now that you have a sense of what actually goes into a YouTube ad revenue calculator, you should feel more confident about making money from YouTube. And hopefully, we’ve answered some of your first questions.
The main takeaway is that yes, it is absolutely possible to make (good) money from YouTube! Plus, with a little extra help from an excellent marketing strategy, you could hit those milestones before you even know what’s happened.
Interested? Contact us today and let’s see how we can help your channel grow to astronomical heights.
