How does youtube make money if it s free

If you really want to be successful in monetizing a YouTube channel you need to cater to a popular demographic. Get free online marketing tips and resources delivered directly to your inbox. So, just how do YouTubers get paid?

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In contrast to Androidwe do not have an angry law suit to help us at get to the bottom of how much money YouTube is making. Estimates for revenues frfe from six to nine billion dollars. Google are the experts in making us all smarter by organizing knowledge. They also know that they have contributed to the destruction of the dollar value of that knowledge by making it so accessible. The converse of this is that keeping knowledge secret happens to be the best way to preserve its value.

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How does YouTube make money off of your videos? And does it make money at all, at least if we are talking about profit rather than just revenue? Once you consider the rising payouts for content, the cost of hosting all those videos and the fact that YouTube gets paid according to how much of an ad is viewed, the conclusion could be that YouTube is struggling to make a profit. But don’t get the wrong impression that the site is struggling. The algorithm attempts to provide the most relevant results for your query, and, along with these results, you may find related suggested pages from an AdWords advertiser. Higher bids move up the list while low bids may not even be displayed.

Go On, Tell Us What You Think!

In contrast to Android maje, we do not have an angry law suit to help us at get to the bottom of how much money YouTube is making. Estimates for revenues vary from six to nine billion dollars. Google are the experts in making us all smarter by organizing deos.

They also know that they have contributed to the destruction of the dollar value of that knowledge by making it so accessible.

The converse of this is that keeping knowledge secret happens to be the best way to preserve its value. And that covers their disclosure policy regarding subsidiaries like YouTube.

Despite this ambiguity, a variety of sources indicate that YouTube is only break even in terms of profitability. Technically, it is not making any money. The internet has been great for consumers, and terrible for content creators. Video is one of the few places they have retained some value — and that is why YouTube, strictly speaking, is struggling to keep hold of the dollars it brings in. Though not enough to make Taylor Swift Happy!

Imagine the water pipe to your house. That was your telephone line and your TV signal in the s. They were virtual utilities on a par with the real actual pipe that allowed you to flush your toilet. You had to pay whatever the water and telco companies told you to pay. Can you imagine that, actually waiting at home by your phone for that call from your latest crush? That was the 80s baby. The water in the pipe was contentand as long as it could justify being in the pipe, it was extremely valuable.

Outsiders did not get a look in. They were buying m video views a day from 72m monthly unique visitors. Video a decade ago was the rare competency where Google simply could not compete.

YouTube made something extremely difficult look easy: they appeared to be the only guys who could stream videosover stone age broadband, without freezing. YouTube had to sell out because copyright owners were sharpening their pitchforks.

As long as they removed said content on request. But it is useful to remember that the other side of that multi-billion-dollar valuation was a mere 67 employees and no revenues to speak of. Google had the resources to deal with the law suits that rapidly rolled toutube, from Viacom to the New Jersey Turnpike Authority. Even more importantly Google were able to build a copyright claim system that let content owners mark out their videos and choose to either have it removed or to take THEIR cut of any advertising revenues the video generated.

Google are top dog in advertising monetization. Now when I go to watch a video, it starts immediately with a small overlay banner that I can Youtuve if it gets in the way.

At the same time a display advert appears on the right. Minimal intrusion and I get to watch my video. The TrueView video ad precedes the video I want to watch. As you will have seen, after 5 seconds, you can skip the advert. The display ad to the side disappears allowing more space for related and sponsored videos. Watch enough videos, skipping each time, and sooner or later YouTube will take away the skip option and you are finally forced to watch an advert in its entirety.

YouTube are systematically eliciting how much you mmake. For new users, it is deploying straightforward A-B testing. If bounce ratese. If bounce rates jump, then it shows.

YouTube have access to all your interactions and can learn their way around your habits and tolerances. Display ads, search ads, overlay banners — advertisers pay up according to views and clicks. But TrueView is cleverer than. I can remember clearly the many commentators who believed that monetizing video would prove to be impossible. The only party left out is the user that hates advertising with a passion. Short answer: because the internet hates valuable content and her content is some of the most valuable out.

Piracy, file sharing and streaming have shrunk the numbers of paid album sales drastically. Death famously can multiply the price of artwork. This is not because of some art world murder fetish and it is not because of some special cachet. It is quite simply supply and demand. There is no value to things that are easily copied and the internet puts digital copying in the reach of 4 year olds.

And maybe they could for a while, but further out all you would see are more illegal platforms. I started with a water pipe representing telephone lines and television. Unfortunately, the internet requires a hose scale inversion of my analogy. The pipe can still be your broadband, but the water becomes user traffic. So what then is the internet? It is your lawnwith each blade of grass a web page or piece of digital content. The search engines are sprinklersdirecting traffic to where their algorithms consider the most meritocratic blades of grass.

Google, Baidu and Facebook should not be as valuable as they are. Because frankly what we care about is the content. We want to connect to our friends in real life, listen to moeny music and read amazing interesting stuff.

The content, like webpages and friends and news and music, should be where the value resides. But the internet changed all. It collapsed barriers to entryallowing anybody to write their views or publish their music.

Dropped them even lower than in the food business. It made youtubbe distressingly difficult for artists to control their music. And that played into the hands of networks and platforms that could connect users to content. The value moved from control of content doess control of users. After collapsing the value of content, the internet gave most of the remaining cards to tech giants like Google and Facebook. Verizon are trying to buy up the hwo for cheap. The more of the lawn they own the less dependent they are on xoes sprinkler, as they drive traffic from around their own sites.

It is an interesting strategy and I how does youtube make money if it s free forward to seeing it develop. We are in a golden age of TV and Netflix youtueb proven that people are willing to pay for video content.

What have they got to complain about? I have to introduce an acronym. I am going to use it the way creators use it, which is broadly how much money they make per one thousand views.

I looked up the movie Deepwater Horizon showing in a Brooklyn multiplex. Naturally the range is wider than. In the United States you typically get 16 adverts against 22 minutes of actual entertainment so as to make up 30 minutes of TV. First thing to note is that TV advertising is a tenth as lucrative as charging up.

Advertising models revolves around getting tens or hundreds of times more viewers for your content. Sometimes that is possible and sometimes it is not. There is an easy come back on. Supply and demand. But that does not stop you dreaming. Adverts on search are hyper profitable.

Adverts on Facebook are joyously lucrative. So why is YouTube falling behind? Lots of videos are also flagged up as risky for advertiserswho may have no interest in being placed side by side with a penis joke.

But things like female educational videos also get flagged, which reduces the total advertising opportunity. But the gorillas in the room are Music Videos.

Fres, as noted by Ms Swift, has been particularly hard hit by online. CD sales have been nuked. Spotify and Pandora pay in dkes of a cent as of. If you use YouTube, you will have seen the name Vevo in front of many music videos. They are a partnership between two of the biggest distributors in Music, Universal and Sony. And the music industry knows how to negotiate. Vevo and Warner Music could arguably destroy YouTube.

That type of dominance is what you call suppliers with bargaining power. In video at least, content is still worth .

Make $100 Per Day On YouTube Without Making Any Videos — Make Money Online

The Rise and Fall of Content

The approach doesn’t always work. If you meet the payment threshold, and there are no problems with your account, Google will pay you at some point during the following month, the exact date depending on the payment method you selected. YouTube vs. The money is made through advertisements. Media mogul’s son is the latest to accuse him of downplaying the role of global warming in the lethal blazes.