CALCULATING YOUTUBE REVENUE

 

You Tube revenue

YouTube does not pay content creator based on the number of subscribers his or her channel has. However, the number of subscribers can positively contribute to your revenue. One thousand subscribers are the minimum number of subscribers needed for monetization approval. The channel also needs to have four thousand watch hours on the uploaded content. If you have many subscribers, your uploaded content is likely to have more views since it will reach many people. The moment you upload a new content, your subscribers will get notified and they may choose to watch it or not. Subscribers are like your loyal online support base. They are people who like your content and are willing to walk with you in your content creation journey. For instance, if you have one million subscribers in your channel, uploaded contents will reach many people compared to a channel with about two thousand subscribers.

Content creators earn from the content they upload in their YouTube channel basically from the adverts placed on those contents. Calculations on revenues are pegged on the set criteria by the YouTube partner program. There are many factors that play important role in calculating these revenues. YouTube policies are subject to revision. Their change may affect how revenue is calculated. YouTube has created premium revenue services where content creators receive share of paid subscription based on the content views. Subscribers operating on this package enjoy an advertisement free content.

Key elements that are crucial in revenue calculation are: Cost per mille, click through rate, Ad formats and the geographical location of viewers.

• 1.      Click through rate (CTR): When a person views an ad and clicks it, it is expressed as a percentage. The more the number of clicks, the more the revenue.

• 2.      Cost per mille (CPM): This is the amount of money advertisers are willing to pay for a thousand impressions. The higher the CPM, the more the revenue.

• 3.      Ad formats: Ad formats mostly used in YouTube advertisements are skippable ads, non-skippable ads and mid-roll ads. These ads contribute to revenue differently. They affect the time the viewers interacts with shown ads. Viewing more ads increases revenue.

• 4.      Geographical location: Advertisers at times pay more depending on the origin of traffic. Traffic from USA may pay more compared to traffic from a country like Libya.
  

 

In conclusion, I can say that You Tube pays content creators based on the revenue generated from displayed ads. Content creators get their share after You Tube has deducted theirs.