YouTube Cash 101: How Does Ad Revenue Work on YouTube?

Did you know that YouTube is so big that it’s technically one of the world’s largest search engines?

Each day, thousands of people across the globe discover fantastic content on YouTube. So it’s not that surprising that people can make entire careers off of their channels.

The easiest way to make money on YouTube is through ad revenue. But how exactly does the process work, and how can you use the algorithm to your advantage?

Keep reading to find out!

How to Monetize Your Channel

The first thing to know about YouTube ads and making money is that anyone can do it. There are only two requirements to qualify.

First, make sure you’ve enabled monetization on your channel. To do this, just head to your account settings and enroll in the YouTube Partner Program.

Once you’re accepted into the program, you’ll have control over how ads appear on your channel. You can even adjust the settings on a per video basis if you’d like.

Understanding YouTube’s Pay Structure

The next piece of the puzzle is learning about YouTube’s payment system, which doles out money through a cost per mile (CPM) strategy.

In this context, the youtube cpm accounts for video views per thousand.

You can only monetize videos that have over 1,000 views. Once you’ve crossed that threshold, you’ll earn more for every 1,000 views you get.

The more views you generate, the more money you make.

Tips for Attracting Advertisers

Put simply, the best way to make money off YouTube ads is by having a massive audience. To do that, you’ll have to pour your heart and soul into your channel.

Start by coming up with a serious publishing strategy.

How often do you want your videos to go up? What time should you post them? These may seem like tough questions to answer, but you can find out using the analytics dashboard.

When you’ve set your schedule, it’s time to start engaging your audience. Form a relationship with them and aim to create content that truly enriches their day.

Once you’ve established your audience, you can reach out to advertisers and discuss partnership opportunities. Ideally, you’ll want to partner with companies whose target audiences are similar to yours.

The larger your audience, the more bargaining power you have.

Consider partnering with other like-minded channels, too. Collaborations are a great way to introduce new content to brand new audiences.

Get Views, Get Paid: Understanding Ad Revenue on YouTube

Ad revenue on YouTube can get complicated, especially if you’re just starting your channel. We hope this guide helped, but don’t forget that you can always reach out to YouTube’s support team if you have any specific questions.

Are you interested in more great tips for growing your business? Then make sure you check out the rest of our blog, where we’ve curated a library of content aimed at making your life easier.