How Much Can A YouTube Channel Earn?

YouTube is one of the largest video-sharing websites that has served billions of videos to its users. When you find an interesting video on YouTube, it would interest you to know what the creator might be earning from that video and several others that he has created. It may also surprise you to know that YouTube earned $15 billion in revenue in 2018.

With a lot of people creating content for YouTube, the number of channels continues to grow exponentially every month, likewise the number of videos. One of the major things these people have in common is “they want to make money on YouTube” which brings us back to the question of how much can a YouTuber earn.

In this article, we will be exploring the factors that influence how much a YouTube creator earns, how ad revenue works and YouTube advertising formats.

How is Money Made From YouTube Channels

It all depends on what kind of content you’re creating, how many viewers you have, and whether you’re able to monetize your videos or not.

Many people who watch YouTube for fun don’t understand how the site’s ad-revenue system works. Some people even go as far as believing that YouTube will pay them just for watching videos. The truth is that YouTube makes money by selling advertising spaces to companies—and they’re allowed to do this because they have created a video hosting website and are providing a service to the public. This is why they can’t just give away cash prizes or hand out checks to creators of just any videos.

But what exactly are these advertisements? Well, think about when you’re watching TV and an ad comes on. You don’t want to pay attention to it, so you change the channel or turn off the TV right?

Something similar applies to YouTube too. But with YouTube videos, you choose whether or not you want to watch the ads beforehand – and if you don’t like it, then don’t click on it. Also, some form of ads permits you to skip only after 5 seconds.

How Much Can You Make From Ad Revenue?

The amount of money you make from YouTube depends on a few things: the type of content you create, how many people subscribe to your channel, and the type of ads that are running in your videos.

Do you have a large audience watching your videos, you can earn between $1.50 and $5 for every thousand views. If you have a smaller audience, you’ll only be eligible for lower CPM (cost per thousand impressions) rates.

When you sign up for Google’s AdSense program which allows advertisers to place ads on your videos, you’ll also get paid a portion of what each advertiser pays Google for their ad space. If a video gets 1 million views and an advertiser pays $5 per thousand views, then that means the advertiser paid Google $500 for those 1 million views. Google will pay you 50 percent of that revenue ($250) as an AdSense partner. The other 50 percent goes straight into Google’s pocket.

To put this into perspective: If your channel has 100 subscribers and 10 videos with 100 views each, then those 100 subscribers would generate $1,000 in monthly ad revenue from their subscriptions alone — before any other.

Would you like to start selling digital products? Check out these 5 easy steps to start

Top Paid Youtubers In 2022

While it’s not easy to become one of the highest-paid YouTubers, some have managed to break into the top 3. So let’s take a look at what makes them so successful and how much they earn.

  1. Felix Arvid Ulf Kjellberg (PewDiePie)

Felix Kjellberg, better known as PewDiePie, is one of the most successful YouTubers in the world. His channel has more than 75 million subscribers and he earns around $19 million annually from his videos alone. In 2017 alone, he earned $15 million through his YouTube revenue. He also owns another channel called “Jack septiceye2” which earns him around $3 million annually.

  1. Ryan John Carmichael (Ryan ToysReview)

Ryan ToysReview dominates the top 10 list of highest-paid YouTubers in 2019 with earnings of $22 million last year alone! This channel has over 24 million subscribers and it gets over 2 billion views every month! Ryan Toy review has become so popular among children that parents often use him

  1. MrBeast

MrBeast is a YouTube star, who earned $85 million in 2018. He uploads videos of his child on the channel Kids Diana Show. In addition to his channel Kids Diana Show, he also has MrBeast, which he started in 2016, where he vlogs about his life and other topics. His videos are different from that of other YouTubers because he adds humour and memes to them. His content is also directly aimed at children, which makes it unique from other channels.

Factors that Impact Ad Revenue On Youtube

Having a bunch of subscribers is not the only metric that contributes to money making a YouTube channel, you should be aware that other factors affect how much you make on youtube.

  • Views: The number of views your videos receive is probably the most important variable when determining how much money you can make from Ad revenue. For example, if your video receives 50 million views, then you should be able to make more money than someone who gets 1 million views. This makes sense because the more people see your video, the higher chance there is for them to click on an ad and watch your video even longer.
  • Type of video: The type of genre that you produce is also important because some genres are more popular than others. For example, let’s say that you produce comedy videos about cats but for some reason, cats aren’t very popular on YouTube so the videos aren’t receiving many views. If you were to create investing or make money online videos, you would probably have a much better chance of making money on YouTube. The reason for this is that many people want to make money online and they tend to prioritize money-related information over other videos.
  • Duration of video: The length of your video is also important. If you create a short video, then people will be more inclined to watch it because they don’t want to waste too much time on YouTube. But if you create longer videos, then people may feel that they don’t need to watch them all the way through because there are so many other things that they could do instead.
  • Ad Blockers: If you create a video and post it on YouTube, then there is a chance that some people will use an ad blocker when they watch it. Ad Blockers are software programs that prevent advertisements from showing up on websites, which means that you won’t be able to make any money off of them.
  • Numbers of Ads Clicks: The more ads a person clicks on, the more money you will make. If people aren’t clicking on your ads, then that means that they don’t like them or they are using ad blockers.

YouTube Advertising Formats

One of the things you must note about YouTube Ads is, there are various types of Ads that appear before, during or after a video.

Below is a table that shows the available ad options on YouTube, where you can control the placement of ads before (pre), during (mid), or after (post) your videos.

Ad formatDescriptionPlatform/PlacementSpecification
Skippable video adsThis video ad allows viewers to skip an ad after 5 seconds. Computer, mobile devices, TV, and game consolesPlays in video player with an option to skip after 5 seconds.
Non-skippable video adsNon-skippable video ads are ads that must be watched before a video can be accessed.  Computer, mobile devices, TV, and game consolesPlays in video player. Length is usually between 15 or 20 seconds, depending on YouTube’s regional standards.
Bumper adsThis type of ad is short, non-skippable and plays for up to 6 seconds. It must be watched before a video can be viewed. Usually turned on when skippable or non-skippable ads are enabled.Computer, mobile devices, TV, and game consolesPlays in video player, duration lasts for up to 6 seconds.
Overlay adsAlso known as overlay image or text ads. They are ads that appear on the lower 20% portion of a video.Shows on computer onlySize is usually 468×60 or 728×90 pixels.

If your channel is due for monetization, then you can easily access these settings for your ads type and placement in the YouTube Studio section of your channel back end, that said, if you want to learn more about YouTube advertising formats? Click here to visit the YouTube help page

Other Recommended Ways to Monetize Your YouTube Channel

If you have a YouTube channel with lots of followers and subscribers, your videos can earn money from various sources apart from YouTube Ads. Other methods of earning money from your channel apart from AdSense include:

  • Affiliate marketing
  • Super Chat
  • Donations
  • Sponsorships
  • Merchandise

Conclusion

Youtube is a large online platform which millions of users visit daily. These users flock to YouTube every now and then to see the latest trends, learn something new and even watch their favourite YouTubers, hence, this is enough reason why you should consider starting a channel and building it up towards monetization.

Until next time cheers to making money online.

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Gift Vincent is a digital communications specialist and an entrepreneur who specializes in helping digital enthusiasts and entrepreneurs build a sustainable digital business and an optimized online presence to reach their full potential.

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