How Do YouTubers Make Money From Advertising On YouTube?

12 January 2018, 11:56

make money on YouTube. How do Youtube ads make money. YouTube ads explained
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Benedict Townsend

By Benedict Townsend

YouTube has different tiers of advertising, here's how they all work

This week, news broke that YouTube was finally taking action against Logan Paul. One of the ways the platform has clamped down on the YouTuber, who will be forever known as the person who filmed the body of a suicide victim, is by removing his status as a 'Google Preferred Partner'.

But what exactly does it mean to be 'Google Preferred'?

What is the 'Google Preferred' Program?

Here's what Google themselves describe the program as:

"Google Preferred aggregates YouTube's top content, such as Michelle Phan and Good Mythical Morning, into easy-to-buy packages for brand advertisers.

Google Preferred offers brand advertisers access to the most popular YouTube channels among U.S. 18- to 34-year-olds. Brands using Google Preferred choose from 12 lineups—or packages of channels—across categories such as Beauty & Fashion, Entertainment & Pop Culture, or Foods & Recipes and share their messages alongside some of the most engaging and brand safe content on YouTube.

By taking advantage of Google Preferred, brands get access to among the top 5% of content on YouTube, reach the highly coveted 18- to 34-year-old audience, and receive the measurement results they need to maximize the impact of their campaigns."

Translation:

It is a program that connects advertisers with the biggest, most profitable, most advertiser friendly channels on YouTube. Removal from the service indicates more than the fact that the platform being angry with you, it is a formal recognition that you are bad for business and unsuitable for advertisers.

PewDiePie got the same treatment as Logan Paul from YouTube in 2017 after his various scandals.

YouTube have even made a little video on the topic, because of course they have:

What other kinds of YouTube ads are there?

As you can see, YouTube really does give special treatment to YouTubers it considers 'top tier' - and to be honest it is perfectly within its right to do that, it is a business after all.

For other (smaller) YouTubers, these are a standard range of ads available from YouTube itself:

YouTube display ads

What are display ads?: In YouTube's own words: "The ad shows up next to your video but it is a lower paying ad format than a Skippable ad. Appears only on desktop and laptop computers. Views from mobile devices will not count as a monetisable view."

When do display ads pay you?: Display ads pay you when a viewer sees the ad or if the ad is clicked on. This depends on the advertiser’s selection (whether they want clicks or views).

YouTube overlay ads

What are overlay ads?: In YouTube's own words: "Appears across the bottom 20% of the video window so try to avoid placing important visuals in this part of the frame. Currently appears only on desktop and laptop computers. Views from mobile devices, TVs or game consoles will not count as a monetisable view. Viewer can dismiss the ad at any time."

When do overlay ads pay you?: Overlay ads pay you when a viewer clicks on the overlay to expand and view the full ad.

YouTube skippable video ads

What are skippable video ads?: In YouTube's own words: "Currently the most common ad format; viewers can skip the ad after viewing it for 5 seconds. Can be inserted before, during or after the video. Currently the only ad format that allows you to potentially monetise views from any viewing device."

When do skippable video ads pay you?: Skippable ads pay you when a viewer watches 30 seconds or to the end of the video ad (whichever comes first).

YouTube non-skippable video ads and long, non-skippable video ads

What are non-skippable video ads?: In YouTube's own words: "Viewers see an ad before your video plays. Viewers must watch the entire 15+ second ad, which may deter viewers who don’t know the value of your videos. Can be inserted before, during or after the video. Currently appears only on desktop and laptop computers, and mobile devices. Views from TVs or game consoles will not count as a monetisable view."

When do non-skippable video ads pay you?: Non-skippable ads pay you when a viewer watches the ad. Duh.

Pro-tip: Although these are the most immediately profitable form of ad, viewers hate them. So consider your audience before you make them sit through a 30 sec ad on every one of your videos, or you might lose viewers.

YouTube mid-roll ads

What are YouTube mid-roll ads?: In YouTube's own words: "Currently available for videos over 10 minutes: ads are spaced within the video, like TV commercials. Viewers must watch ads before continuing through the video. You can insert ad breaks at natural pauses between scenes for the best viewing experience. Currently appears only on desktop and laptop computers, and mobile devices. Views from TVs or game consoles will not count as a monetisable view."

When do YouTube mid-roll ads pay you?: When you get paid depends on the type of ad: - If the mid-roll is a skippable ad, then the user must watch 30 seconds of the ad or the entire ad, whichever is shorter.

- If it’s a CPM-based ad, then a user must watch the entire ad regardless of length. CPM is an advertising term relating to how much the advertiser is spending on the ad versus how much money they're getting back from it.

YouTube bumper ads

What are YouTube bumper ads?: In YouTube's own words: "A lightweight, non-skippable video ad up to 6 seconds long. Optimised for viewing on mobile. Viewers must watch the entire ad before your video can be viewed."

When do YouTube bumper ads pay you?: They pay you a viewer watches the ad.

YouTube native mobile ads

What are YouTube native ads?: Display ads that appear below a video's metadata. Only available on mobile.

When do native mobile ads pay you?: It all depends on how the ad format is purchased by the advertiser:

- Option 1: you will earn revenue based on the load of the impression.

- Option 2: you will earn revenue based on when the viewer clicks on the ad (not when the ad is displayed on a page).

Now get out there, make some videos and make some paper.