Man with Youtube on phone

Factors That Affect Your Brand’s YouTube Monetization Potential

Published On July 14, 2021

There are opportunities galore for content marketers with various channels, types of content, and different websites. One that we think is highly underestimated and poorly monetized by users, is YouTube. While a lot of content creators treat YouTubing as a full-time job by investing time, effort, and resources, not many make a sustainable income from it. There are some, though, who are smart enough to play the monetization game well and create a content empire through YouTube. According to a survey, the top 10 earning YouTubers in 2020 made a combined $242 million, which is more than substantial enough to be considered a celebrity!

This is hardly the norm when it comes to salaries for YouTubers. While some YouTubers are one-man operations, many invest in a team, technology, and marketing, making the final pot of gold fairly small, once all the checks and balances are settled. There are multiple models to monetize a YouTube channel and they all come with their sets of flaws and pitfalls. While there is a chance that you might need to hold on to that day job for a little longer, there are a few things you can do within your power to maximize your earning potential on YouTube.


The Importance Of CPM

CPM or Cost Per Millie is the cost for every 1000 impressions. This value is the basis for all YouTube revenue models. This is the value that is charged to advertisers on YouTube. Just like how YouTubers create videos for an audience, brands create ads that are attached to these videos. Just like the traditional advertising model where ads would be intertwined with television or radio programming to reach the audience of the said program, ads have now migrated to YouTube, targeting the audience for specific YouTube content.

Advertisers pay to have their ads shown on YouTube and it is a bit of a lottery as they’re not sure where their ads will end up. A video with millions of views will reach a larger audience and provide the advertiser with a greater ROI. YouTube is working to satisfy these advertisers, primarily. YouTubers becoming wealthy is a byproduct of it. The bottom line is the more viewers you attract, the more you have a chance to make ad revenue on the platform.

Wondering about the budget to set aside for YouTube collaboration? Read our blog: Discover The Huge Earning Potential For YouTube Content Creators.

Youtube Monetization CPM

Monetizing Views

The YouTube calculator for revenue works with the videos embedded at the beginning of your videos. There is a general estimated amount of earnings for a certain range of views. Based on the number of views, the number of channel subscribers, and the quantum of Google earnings, the final amount paid to the YouTuber varies based on specific advertisers. There are other factors too that drastically vary the amount a video earns for 1000 views. This includes the category of the video, seasonality, geography, and cost per advertising spot.

It is said that the average YouTuber makes close to $8 per 1000 views per video. This, again, is variable and usually falls in a range of $4 to $10. The new content creators with minimal followers who choose monetization to get the short end of the stick with some earning $0.10 per 1000 views. There is competition among advertisers as well with important ad spots being auctioned to the highest bidder. Ad spots during marquee events like Christmas or the Super Bowl attract a premium cost due to the large traffic experienced.

Analytics & AdSense

To understand the various parameters associated with the performance of a channel, YouTube analytics available in the YouTube Studio breaks down key elements of video performance for holistic takeaways. The data provided here is in real-time and covers several parameters including revenue, views, subscribers, comments, monetization, copyright claims and more. Understanding YouTube Studio, and implementing changes based on feedback is a key part of being a successful YouTuber.

AdSense, a product of the Google Suite, is where all ad revenue payments are made and hence requires an account to be created and linked with the YouTube channel. Fun fact: 45% of all the ad revenue earned by a YouTuber goes to YouTube. The AdSense account provides data on a user’s RPM – revenue per thousand impressions. This value fluctuates based on several factors. If a channel earns $0.20 from 100 views, the RPM is (0.20/100)*1000, which is $2. The AdSense account also allows users to access information concerning views, impressions, clicks, and RPM.

Youtube Monetization analytics

Working With Algorithms

With constantly evolving policies and models, understanding YouTube algorithms is the holy grail of the 21st century. Getting a hold of algorithms conceptually can help channels leapfrog competitors who are testing the waters. From knowing when to post for maximum engagement to capitalizing on breaking news and events, mastering the YouTube algorithm is a great way to drive traffic in a way that benefits the YouTube channel. By creating content on a single pillar topic that gains traction and then following it up with additional videos is a great way to gamify the YouTube algorithm to your advantage.

Monetizing Subscribers

While it has become common knowledge that 45% of ad revenue goes to YouTube, it must be noted that Google AdSense advertising for other websites takes away only 32%, leaving 68% of the ad revenue for the owner. Assuming every viewer watched the ad on a video, the average $7.6 CPM paid the advertiser generates revenue of $4.18 for the user (55%). The game is to then boost subscribers. The more subscribers, the more people view every video. The more people view a new video, the more people are likely to view the ads. 

The greater the ad views, the higher the revenue paid to the channel. The number of subscribers is therefore directly proportional to the number of subscribers a channel has. One factor that plays a key role is the human tenancy to skip ads. Taking the above value of $4.18 per 1000 views, it is estimated that only 15% of viewers view ads while 85% skip them. 15% ad views generate revenue of $0.627 per 1000 views. It is therefore imperative for viewers to build a strong enough fan base that makes up for the lack of engagement.

Search Engine Optimization

SEO is a key part of any type of online marketing and the same holds for YouTube. These techniques to boost campaigns go beyond websites and traditional social media. Just like search engines, YouTube works on the same model of responding to user searches. By using the right keywords and tags, users can align their videos with what customers search for so that it shows up when they look for it. The SEO on YouTube covers important aspects such as keywords, playlists, titles, video analytics, and descriptions.

Do not try to be subtle while naming YouTube videos. By being direct, creators cut down on the cognitive effort applied by the user to see if the suggestions match their requirements. The more in-line the videos are with their needs, the more likely they are to trust the channel and other videos on it. Sometimes, a video might contain exactly what the user is looking for but the ambiguous title and keywords used renders it useless and negates all the effort put into creating the video.

Take your YouTube SEO game a notch higher with our blog: 6 SEO Strategies To Beat Your Competitors.

Youtube Monetization SEO

Supplementing Direct Revenue Streams

If making money is the ultimate goal, there are a few other ways to make money from YouTube beyond advertising. Many YouTubers expand the horizons of their revenue streams to optimize their earnings. Some of these streams include:

If making money is the ultimate goal, there are a few other ways to make money from YouTube beyond advertising. Many YouTubers expand the horizons of their revenue streams to optimize their earnings.

Get inspired from our blog for influencers: What Is YouTube Super Chat And How To Monetize It? You could do it for your brand!

Affiliate marketing

By collaborating with brands unofficially to review a product or service, or throw in the name of a brand in a podcast as an endorsement, they drive their users to invest in the brand. These affiliate links. The Youtubers review or mention the brand, be it a product such as makeup or a service such as software. They then earn a pre-decided percentage of what audiences pay when they purchase by clicking on the link.

Merchandise

YouTubers can create a brand of their own by indulging fans of gamers, vloggers, comedians, and podcasts to be a part of an exclusive community through merchandise available on the online store. By monetizing their YouTube presence, creators can sell a wide variety of accessories and apparel to these fans.

Sponsorships

YouTube is the ultimate advertising playground for brands with over 2 billion monthly users and 1 billion hours of watching per day. Companies are constantly looking for creators to collaborate with to capitalize on their reach and audience, and are often willing to sponsor YouTubers to boost revenues through reviews and promotions.


You’ve got to get a grip on the YouTube revenue model that revolves around the cost per 1000 views and impressions to start making a substantial amount of money on this platform.

Remember, your monetization is directly proportional to your ranking! Read our blog: 10 YouTube Marketing Tips For High Ranking Videos, to know more.

At atisfyreach, we understand that your invaluable time needs to be optimized for the best possible returns. And we are here to help! We provide services that help brands establish a strong presence across social media platforms, and connect them with influencers through tailored marketing campaigns.

Get in touch, and be on your way to success today!

New to atisfyreach™?
Don’t worry!

We’ve got you covered with insider tips for your next project. Subscribe now, and get it delivered to your inbox!

You Might Also Be Interested In