Update 8. The First Paycheck (Understanding YT Monetisation) …
First Paycheck
My first paycheck from YouTube arrived yesterday (in the form of an AdSense deposit) and, as promised, in this quick update I’ll dive into how YouTube monetisation works, and break down my own stats.
Getting Monetised
Pretty sure I’ve mentioned it before, but in order to monetise your videos on YouTube the requirements (as of June 2020) are that you must have
1,000 subscribers, and
4,000 hours of watch time (in the last 12 months).
Once you hit that, YouTube will tell you to open up an AdSense account, and once that’s done, you have to wait for YouTube to review your channel before allowing you to monetise videos.
If you get the go-ahead, then you’re free to monetise your videos as you wish.
“Controlling the Ads”
You don’t have any say in
what ads will appear in your videos (since this is determined by looking at the metadata of your video and deciding which ads would be most relevant to that video).
But you
do have control over how many ads you want.
Here’s a little look at the monetisation settings for one of my videos:
View attachment 33486
Typically, people will keep all types of ads on, and will place an ad before the video starts, as well as after.
Mid-roll Ads
If you upload videos that are 10 minutes or longer, you’ll be allowed to run “mid-roll ads”.
These are the ads that run mid-way through a video (and you can apply multiple midroll ads per video).
An example of what the settings for a midroll ad look like on my video:
View attachment 33487
Although it’s not been confirmed, the common “rumour” is that midroll ads will actually make the algorithm favour your video much more, as well as allowing you to make more money from it. (Makes sense, since YouTube is a business and wants the videos that are longer and have more ads in them to be promoted for the benefit of their advertisers).
Whilst some people fear putting midroll ads in because it could “annoy” their audience, I still don’t think that’s a good enough reason to leave it out (unless you’re going completely overboard).
Most people on YouTube (including myself) are used to seeing ads by now, and it’s only 5 seconds worth of hinderance to your viewers – not to mention if you’re spending hours and hours creating these videos, then you’d be doing yourself a disservice by not trying to get the algorithm to push your video more favourably, and make a little more money from it!
“How much does YouTube pay you?”
Ahhhh, the age-old question of how much YouTube pay… well, the answer is
it completely depends on the content of your videos and overall channel.
Here’s how it goes :
YouTube will pay you an amount of money per 1,000 views. (This is otherwise known as your CPM. A CPM of £2 on one video will mean you get paid £2 per 1,000 views on that video).
The massive variable here is your CPM. Because everyone’s going to have something different depending on their niche. (You can find your CPM in your back-end analytics).
A niche that is likely to have more advertisers throwing money at it, is going to have a higher CPM.
For example: the personal finance niche has a high CPM of usually £10+. I have also heard that the beauty/makeup niches have extremely high CPM’s as well, since advertisers know that someone watching a makeup tutorial has a higher chance of pulling out their wallet and spending money on beauty products.
What’s important to note is that
every video you post will have a different CPM. If all your videos are within the same niche, then they’ll likely have similar CPM’s per video. Whereas in my case, one video can have a CPM of £6, whilst another can have a CPM of £17.
Monetised Views [IMPORTANT]
Youtube will pay you
as soon as your viewers see the ad. Whether they watch only 5 seconds, the full thing, or whether they click on the ad, it doesn’t matter.
Once they see it, you are paid, and this amount doesn’t change depending on how much of the ad they’ve watched (this only effects the advertiser themselves).
What’s important to note here is that you are paid when they actually
see the ad. So if someone is running ad-block, you are not going to be paid.
YouTube allows you to see how many of your views were “monetised views” in their back-end analytics (which I’m going to show you in just a moment).
Breaking Down My Stats
So, I’ve been monetising my videos since the 17th of May (26 days ago from this post).
My average CPM across all videos is currently
£14.29.
My estimated monetised playbacks are
2.6M.
Unfortunately, multiplying these two numbers together will not give an accurate result on my earnings since they are just estimates and averages.
My total “estimated” earnings (since monetising) has been
£21,233.
View attachment 33488
YouTube pays you based on your previous month’s earnings. In the month of May I made an estimate of
£11,722.21:
View attachment 33489
YouTube paid me a total of
£11,677.36 directly into my AdSense account (only £44.85 shy of the estimated earnings).
SIDENOTE: YouTube will only allow you to withdraw any funds on your AdSense account if they exceed £100.
Conclusion
I hope that answers some of the questions you’ve had regarding YouTube monetisation.
And yeah, that first paycheck was more money than I’ve earned in my life.
I’m not planning on withdrawing it into my bank account yet, until I register as a limited company so I only pay corporate tax on it, allowing me to pay myself as an employee and strike that off as a business expense
I’m nearing the end of this next video, and I’m pouring the majority of my waking hours on editing this thing, but I’ll occasionally pop by the forum on my breaks and answer any questions you have!