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3Sep

YouTube Monetization: How it Works | We Grow YouTube Channels

By Rebecca Valentine | Blog, YouTube | 3 Sep 2021 |



YouTube monetization is a process for how YouTube copyright holders can integrate ads into their content and share the ad revenue with YouTube. The advertising, as well as the sharing of ad revenue, are done by Google AdWords. YouTube also provides a monetization API that allows advertisers to upload pre-roll video ads to be run on videos.

YouTube offers three types of channels: user channels (which have been enabled for monetization), partner channels and brand channels. User channels are typically created by individuals or organizations that have not signed an agreement with YouTube to generate profit from their videos. Partners are typically companies who either self-submit content or belong to a network like Maker Studios.Brands may be non-profits, corporations such as Ford, or celebrities such as Ashton Kutcher.

Who can monetize on YouTube?

Anyone who owns one or more videos on YouTube can participate in the monetization program. For use cases where a large number of creators want to tap into the YouTube revenue stream, YouTube has created "networks" that allow multiple creators to pool their channels and aggregate viewership data towards more effective ad buys.

YouTube is very transparent about its policies when it comes to what types of Google Ads can be shown on which videos and to which advertisers. Guidelines are enforced for ad-friendly content that ensures the ads served on and around videos will be appropriate for all audiences. Content that violates the YouTube guidelines is not eligible for monetization, and will remain published without any revenue generated from advertising.

YouTube takes into account several different factors when deciding whether or not a video is appropriate for monetization;

  • The number of views the video has received, and whether or not the video was hidden before it could accumulate any views.
  • Whether or not the content is appropriate for all audiences, which includes a consideration of violent or graphic content, sexually suggestive situations, profanity and other factors. YouTube states that they are very conservative when choosing to monetize content with profanity. YouTube also uses the lack of profanity in a video as a factor for whether or not it is appropriate for all audiences.
  • Whether the content is eligible for advertising under Google AdSense policies.

These factors are used to determine whether or not ads will appear on videos and what types of ads will appear. Content that is deemed inappropriate for monetization are not eligible for advertising under Google AdSense policies.

Items which can't be promoted.

YouTube also does not permit promotion of products and services related to:

  • Gambling.
  • Firearms, ammunition, or weapons (including paintball guns and knives).
  • Promoting drugs or drug paraphernalia.
  • Promotion of hate and bullying content.
  • Content that encourages others to believe that violence is acceptable based on a race, religion, nation, gender, sexual orientation, age group, disability or any other identifying factor.
  • The sale of liquid nicotine or e-cigarette delivery devices.

YouTube offers a more detailed list of prohibited content on their Partner Program policies page.

How soon can you Monetize?

Many YouTube channels are eligible for monetization but not all of them are enabled for this feature yet. If you want to enable monetization on your channel, you can enroll in the YouTube Partner Program and upload videos that will be reviewed for monetization. Enrolment in the YouTube Partner Program is currently free and can be done here.

How are ads placed on videos?

YouTube offers quite a bit of flexibility when it comes to where ads are placed on videos. Most frequently, ads appear before or after the video, and sometimes during but not in front of any important parts of the video. The copyright owner of a video can also prevent ads from appearing around their content at all, or choose to block certain kinds of ads.

YouTube allows any user with monetization enabled on their channel to input keywords that will trigger Google's algorithm to exclude the video from running ads entirely or preclude it from showing specific types of advertising (e.g., alcohol, gambling, etc.). YouTube does not disclose the exact formula they use to determine which kinds of ads will show up on videos based on these keywords.

YouTube also allows content owners to select a specific audience who should and should not see their ads. Setting an age restriction for your ads means that only users who are logged into accounts that match that age will see those ads. You can also choose to show your ads only in specific countries, or set the audience by languages spoken and mobile devices (e.g., computers, tablets, smartphones).

YouTube allows partners to either manually input ad copy or upload a set of video advertisements for consideration from within their YouTube account. These video advertisements have a maximum length of 30 seconds and can be uploaded in any format that is accepted by YouTube's content requirements.

YouTube allows partners to adjust the frequency of advertisements as well, such as limiting the number of times a user sees an ad in a day or within a specific period (e.g., three times per day) and there are options to set different settings for weekdays versus weekends.

YouTube offers two pay-per-click (PPC) options: cost per view and cost per click. With cost per view, advertisers only pay when the ad is watched (i.e., 100% of the ad is viewed). Cost per click means that advertisers only pay when someone clicks on the ad (regardless of how much of the ad was watched, or if it was watched at all).

This leads to a wide range in pricing for YouTube ads. PPC rates can be as high as $14 per 1,000 views and as low as $0.10, with most YouTube advertisers opting for PPC-based ads. YouTube also offers pre-roll ads for free but advertisers must meet certain requirements (e.g., length of video that serves as ad content).

Conclusion

If you're an avid YouTuber, it's likely that monetization is a significant concern for your channel. In this blog post, we've laid out some of the most important things to know about how YouTube ads work and why they matter so much for video creators. We hope these insights help make sense of what can otherwise be a confusing process. Now go ahead and take advantage of our free consultation with one of our experts in online marketing if you want more tips on how to grow your digital audience on YouTube or any other platform. Let us show you The Influence Booster difference today with these YouTube services

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