YouTube is one of the most popular brand on the planet! If you can carve out a niche or find an area that you are knowledgeable in, it could be surprisingly profitable for you.
Content marketing is exploding. It makes sense, as a written article or produced video can convey more information and users actually choose to read/watch it. Companies are willing to pay content marketers, including YouTubers, big dollars to have them promote their product.
So how much do they really make? Well, let’s look first at how much companies pay them to promote a product and secondly let’s look at how much YouTube pays them to run ads.
How Much do You Pay a YouTuber to Promote Your Product. Obviously this varies widely depending on the YouTuber’s audience and the marketing objective. In general, YouTubers typically charge around $10,000 per 100,000 views. It’s difficult to predict how many views a native video will get, so that is the risk an advertiser takes.
How Much YouTube Pays YouTubers Per View. Once the YouTuber links Google AdSense to their channel, they make 68% of the ad revenue (see Google AdSense Revenue Share). YouTube charges advertisers when a viewer watches 30 seconds or more of the ad, and typically charges around $.18 per view (see How Much Do Ads on YouTube Cost). Only about 15% of viewers will be counted as a “paid view” since many of them skip.
So if you have 1,000 views to your video and 15% actually watch the ad, then you would have 150 paid views. At $.18 per view, this would equate to $27 total charged to the advertiser. As the content creator you get 68% of that, so you would average around $18 per 1,000 views.
Here is it another way:
1,000 views –> 150 views of people completing the ad
$.18 per view x 150 views = $27 charged to advertiser
$27 advertiser charge x 68% revenue share = $18 paid to content creator per 1,000 views
Who are the Top YouTubers? In 2014, the top YouTuber made $4.9 million unboxing toys. Yes that’s right, the whole channel is just her unboxing Disney toys. Her top video, Play Doh Sparkle Princess, has garnered 217 million views. Other examples include PewDiePie, which made $4 million in 2014 and LittleBabyBum, which made $3.5 million. If this makes you question everything you’ve done in your life, you’re not alone.
Should Marketers Pay YouTubers to Make Videos? To say it depends is kind of a cop-out, so I’m going to compare the cost per thousand views to if you just ran an online video ad instead.
Making Videos. From above, you could calculate that to have a YouTuber make a video and post it to their channel you would be paying roughly $10,000 for 100,000 views, which breaks down to $100 per 1,000 views.
Running Video Ads. If you opted to just run an ad on their channel, you would pay $27 per 1,000 views (but only really get 150 completed views). To get 1,000 completed views it would cost $405.
Both are good options. Video is much more visual than any other media so if you’re debating between the two you have a good problem. Having a YouTuber produce a video is comparatively less expensive, but you give up creative control and cannot know how successful the video will be. Also you are limited to just their channel, so you may need to do multiple of these deals. Some of the pros are that you get a customized piece of content that doesn’t feel like an ad, and oftentimes these channels reach audiences that don’t consume general mass media. Paid ads are just that – paid ads, and oftentimes users feel inconvenienced when forced to watch them. However, the targeting is great and can oftentimes tie into your larger marketing strategy.