YouTube is replacing television and cable tv in the 6-35 age groups ( Telegraph, 2016). The platform’s phenomenal growth has been, partly due, to millions of creators publishing their own unique content. Youtube monetises its content much like regular TV channels – through ads .
YouTubers are unique, in their ability to create funny, unique and original ,content on a micro-budget compared to traditional TV productions. Many Youtubers have started as a one-person operation with a webcam and some basic video editing skills. The simple requirements needed to generate content gave thousands of creators the opportunity to start producing content relevant to their audience. Many of these creators now have channels with millions of subscribers and generate huge incomes.
So how do YouTubers like Memeulous, WillNE, Imallexx and others generate income from their content?
The short answer is ads! There are two types of ads these YouTubers can generate a revenue from.
The first type of ads are the ones displayed on the video every few minutes. Creators can actually choose how often ads should appear on their content. These are generally the ads that interrupt the video , which you can usually skip after a predetermined timeframe. Revenue from the ads shown on their videos is shared between YouTube and the creators. The payout for these ads is determined on the amount of views or levels of engagement (if a viewer clicks an ad). These ads are not produced or endorsed by the creators themselves. These ads are bid on by companies who believe that their target audience is watching these videos.
The second type of ads which generate revenues for YouTubers are in-video ads. These ads are often produced by the creator themselves and are generally blended in with the content produced. These ads are deals between companies and the YouTubers themselves. Companies approach YouTubers to endorse and create content for their product or service. These are private deals and YouTube does not have receive any income from these types of ads.
It is common for companies to provide YouTubers with a custom download or purchase link for their product to share with their audience. These are affiliate schemes and usually reward the YouTubers according to the amount of downloads/ purchases they generate. Having an affiliate link also allows companies to accurately measure the impact a YouTuber has on their campaigns.
Sometimes companies will prefer to have a longer-term endorsement of a channel as a way of building their brand and associating it with a certain hobby/ lifestyle or interest.
Additional sources of income for YouTubers:
YouTubers are now able to generate income from many more ways than ads. As small channels turn into multi-million dollar operations, YouTubers are now finding themselves diversifying their offerings and entering new markets. Many YouTubers such as memeulous and WillNE, now produce their own merchandise for fans . From hats, tshirts, hoodies and everything in between there are now multiple things that YouTubers can sell to generate additional/ supportive income to their channels.
Many YouTubers now also use platforms such as Patreon and OnlyFans to offer exclusive content to their most loyal fans, for a monthly fee. These platforms have actually been created, partly, as a result of the massive growth of the internet content creator market.
As YouTubers tend to have a high degree of influence in their respective niches, it is common for them to also become brand ambassadors. Some YouTubers create their own range of products with companies in their field . Diversification has also included live shows, book deals, and even celebrity boxing matches.
Wondering if a YouTube channel could benefit your business? Starting you own YouTube Channel? Want to grow your existing audience? Diversify your brand and increase your revenue streams? We offer one to one tailored consultation to answer your questions and help you set out an effective and easy to follow strategy for your channel. Best yet, the first consultation is free. Sign up for a free one on one consultation via Skype at www.guerrillagorilla.co/free-consultation.
What can you expect at one of our consultations?
We’ll ask you about your brand, your vision for the content you would like to create, and your existing audience. This will help us understand who you are, what makes you unique and who your ideal audience could be. Further consultations will help you develop a unique content strategy for your brand, understand what makes content unique and how to target the correct audience.
Telegraph – 2016 https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/12067340/Traditional-TV-viewing-is-over-YouTube-habit-is-permanent-warn-researchers.html