{"id":76469,"date":"2023-07-26T16:19:00","date_gmt":"2023-07-26T16:19:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=76469"},"modified":"2023-09-03T02:42:13","modified_gmt":"2023-09-03T02:42:13","slug":"how-does-youtube-make-money","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-strategies\/how-does-youtube-make-money\/","title":{"rendered":"HOW DOES YOUTUBE MAKE MONEY IN 2023?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
How does YouTube profit from your videos? And does Youtube make any money in terms of profit vs. revenue? When you consider increased content royalties, the expense of hosting all those videos, and the fact that YouTube is paid based on how much of an ad is viewed, YouTube may struggle to profit. But I don’t get the feeling that the site is in trouble. According to the most recent revenue numbers from YouTube company Alphabet, YouTube produced $20.21 billion in advertising revenue in just the first nine months of 2021.
This article will examine how YouTube makes money and how this segment of the “Googleverse” plans to profit.<\/p>\n\n\n\n
Youtube generates the majority of its money from adverts, accounting for 11% of Google’s net US ad revenues. Despite the company’s steady shift toward a subscription-based business model, it remains a secondary revenue stream.<\/p>\n\n\n\n
Sponsored adverts are one way for YouTube to make money. The circled result in the above image is a paid advertisement. It is a sponsored video, and the advertiser pays YouTube based on the number of views it receives after clicking on such an ad. It is known as SERP advertising.<\/p>\n\n\n\n
An embedded commercial is another source of money for YouTube. This advertisement plays before the video starts. In addition, brief commercials are placed between videos, thus making more money.
In this case, Youtube collects money from advertisers based on the ad’s number of views. A percentage of the amount is paid to the video’s creator.<\/p>\n\n\n\n
A landing page is YouTube’s homepage that appears without checking in. This landing page advertisement on YouTube is a banner-type advertisement that can include both images and videos and can be used by advertisers in various ways to tell the story.<\/p>\n\n\n\n
YouTube, like Netflix, has debuted its subscription-based freemium income model, Youtube Premium, which provides users with an upgraded, uninterrupted experience across YouTube, YouTube Music, and YouTube Gaming.
The following benefits come with a YouTube Premium membership:<\/p>\n\n\n\n
The cost of joining is a subscription. Youtube Red costs $11.99 monthly in the United States, but prices vary by country.<\/p>\n\n\n\n
YouTube’s revenue sources are not limited to adverts.
Starting as sponsorships, the channel memberships feature enables Youtube partners (publishers) to engage more deeply with their audience and make more money from Youtube than simply inserting advertising.<\/p>\n\n\n\n
Partners can use this functionality to add a “Join” button to their channel and video pages. Patreon’s business model inspires this membership feature. It allows the author to give special privileges to subscribers who pay $4.99\/month, such as goods, offers, discounts on official items, and so on (different for different countries).
Youtube retains 30% of the subscription cost paid by the subscriber.<\/p>\n\n\n\n
YouTube TV is a live TV streaming service available only in the United States that allows members to watch cable networks such as ABC, NBC, FOX, ESPN, Disney, and others on YouTube. This is a subscription-based service that is rapidly growing.
Youtube TV, which has over a billion users, is a tremendous addition to Youtube’s income strategy and a significant competitor to Hulu. The service is $49.99 a month, includes six different accounts, and allows you to stream from over 70 networks.<\/p>\n\n\n\n
However, specific premium channels may be subscribed to after paying an additional subscription fee. Youtube TV is available on any device and includes a free Chromecast with every subscription.<\/p>\n\n\n\n
You’ve probably noticed comparable products under some YouTube videos. These products link to affiliate partners who pay YouTube a commission if you purchase their products.
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Looking back at the YouTube tale may be a valuable exercise in understanding the company’s rapid growth and the future of the YouTube business model.
Jawed Karim, a German-born youngster who migrated to Minnesota with his family in 1992, released a video titled “Me at the Zoo:” on April 23, 2005.
This was the first video shot in the San Diego Zoo for YouTube, the video-sharing platform that will overtake Google as the most popular website in a decade.<\/p>\n\n\n\n
As expansion accelerated, concerns about copyrighted content arose.
YouTube founders met with media executives to persuade them of the commercial value of being included on YouTube.<\/p>\n\n\n\n
The YouTube founders could live and thrive until the big success occurred in 2006. Google paid about $1.7 billion for YouTube.<\/p>\n\n\n\n
By 2010, YouTube had over two billion daily visitors.<\/p>\n\n\n\n
Just five years prior, YouTube’s founders and former PayPal coworkers sat up all night testing and preparing the video-sharing platform that would be bought by Google just 19 months later!
At the time, YouTube had over 2 billion daily views, far outnumbering all US networks combined.
By 2012, YouTube’s user base would have more than doubled. YouTube’s substantial international expansion continued in 2012.<\/p>\n\n\n\n
According to Similar Web projections, YouTube will be the world’s second most popular site between March and May 2022, after only Google. It also offers impressive engagement stats.
YouTube is hugely sticky, with about 30 billion total visits per month, an average visit time of over 21 minutes, and over 12 pages visited per session.<\/p>\n\n\n\n
That is also why YouTube is a crucial component of Google’s business model.
As the search engine evolves, it will begin to serve more and more types of content.<\/p>\n\n\n\n
As a result, YouTube is now Google’s most valuable product.<\/p>\n\n\n\n