Some YouTube videos have themselves had a direct effect on world events, such as Innocence of Muslims (2012) which spurred protests and related anti-American violence internationally. TED curator Chris Anderson described a phenomenon by which geographically distributed individuals in a certain field share their independently developed skills in YouTube videos, thus challenging others to improve their own skills, and spurring invention and evolution in that field. Journalist Virginia Heffernan stated in The New York Times that such videos have "surprising implications" for the dissemination of culture and even the future of classical music.
Enabling monetization means that you agree you will only upload video content that you have the rights for and that you will play by the rules (such as not watching your own video over and over to boost ads). Google AdSense is the way you set up your payment information for when you actually start making money. I’ve posted links in the show notes of today’s episode so that you don’t have to hunt around for these links.
It helps, too, that the same young viewers who eschew television in favor of YouTube are bonkers for video games. “Ten to 15 years ago, gaming wasn’t cool. You didn’t game because it was cool, you gamed because you loved it,” says David Huntzinger, a digital-talent agent at WME. “Now you have Drake going on Twitch and playing Fortnite, and [professional] athletes in the locker room saying they can’t stop playing Xbox—it’s what these kids are living and breathing.”
But sponsorships are where the big bucks are made, and where intermediaries like MediaKix and other agencies come in. This is the major leagues: Most brands aren’t interested in YouTube channels with fewer than 200,000 to 300,000 subscribers or average views of less than 10,000 to 20,000 per video, says Asano. The bar is also high because videos cost more to make, and require tricky negotiations —the sponsor will want to know where their product will be featured, for how long, and so forth. “When we’re connecting top brands with top influencers on YouTube, you’re talking a minimum budget of $50,000 to $100,000, and it just goes up from there,” Asano explains. “Some of the biggest YouTube influencers get paid $100,000 to 200,000 for a single video. And then those videos get millions of views. That’s why there’s a lot of money in the space.”
The first two steps in earning online revenue with YouTube is to open an account and turn on account monetization. Enabling monetization requires accepting YouTube’s advertising guidelines and connecting to an AdSense account for payment. Enabling ads on your YouTube videos requires agreeing to Google’s ad revenue share for YouTube. There is a 45/55 split for all content creators, so Google keeps 45 percent of all YouTube advertising on your videos, and you get the remaining 55 percent.
The world of YouTube is vastly different from the world of broadcast television. While broadcasters in the United States and abroad are bound by rules, and the threat of punishment for breaking those rules, far fewer such regulations apply to the creators of YouTube content, or to YouTube itself. YouTube’s default position is that no one under 13 is watching videos on its site—because that’s the minimum age allowed under its terms of service. In addition to its main site, however, the company has developed an app called YouTube Kids. Like normal YouTube, it plays videos, but the design and content are specifically made for parents and children. It’s very good. It draws on the expertise of well-established children’s-media companies. Parents can restrict their children’s viewing in a multitude of ways, such as allowing access only to content handpicked by PBS Kids. But here’s the problem: Just a small fraction of YouTube’s 1.9 billion monthly viewers use it. (YouTube Kids is not available in as many countries as normal YouTube is.)
Libya blocked access on January 24, 2010, because of videos that featured demonstrations in the city of Benghazi by families of detainees who were killed in Abu Salim prison in 1996, and videos of family members of Libyan leader Muammar Gaddafi at parties. The blocking was criticized by Human Rights Watch. In November 2011, after the Libyan Civil War, YouTube was once again allowed in Libya.
Understand this, Certain KeyWords Pay More than Others. Advertisers will pay more for the keyword, “home mortgage” (CPC $17.63) than “cheap phone cases” (CPC $1.38) because the end return is a lot higher. If someone ends up closing on a home loan that could make them upwards of $5,000+, whereas the end return on a cheap phone case would only be $15. Would you rather get paid from a phone case video that gets a million views with a CTR of 0.01% or a home mortgage video that only gets 10,000 views with a CTR of 0.08% ? Consider the scenarios below with the given keywords and their cost per clicks.
YouTube featured an April Fools prank on the site on April 1 of every year from 2008 to 2016. In 2008, all links to videos on the main page were redirected to Rick Astley's music video "Never Gonna Give You Up", a prank known as "rickrolling". The next year, when clicking on a video on the main page, the whole page turned upside down, which YouTube claimed was a "new layout". In 2010, YouTube temporarily released a "TEXTp" mode which transformed colors in videos to random uppercase letters "in order to reduce bandwidth costs by $1 per second." The next year, the site celebrated its "100th anniversary" with a range of sepia-toned silent, early 1900s-style films, including a parody of Keyboard Cat. In 2012, clicking on the image of a DVD next to the site logo led to a video about a purported option to order every YouTube video for home delivery on DVD. In 2013, YouTube teamed up with satirical newspaper company The Onion to claim that the video sharing website was launched as a contest which had finally come to an end, and would announce a winner of the contest when the site went back up in 2023. In 2014, YouTube announced that it was responsible for the creation of all viral video trends, and revealed previews of upcoming internet memes, such as "Clocking", "Kissing Dad", and "Glub Glub Water Dance". The next year, YouTube added a music button to the video bar that played samples from "Sandstorm" by Darude. In 2016, YouTube introduced an option to watch every video on the platform in 360-degree mode with Snoop Dogg.
New challengers also add urgency to her task. Facebook and Twitter Inc., which routinely send traffic to YouTube, are building their own video offerings. Facebook, and startups such as Vessel, are trying to poach YouTube stars. Meanwhile, Amazon.com Inc. and Netflix Inc. are changing the image of “online video” by licensing Hollywood-produced content and creating original programming.
YouTube Go is an Android app aimed at making YouTube easier to access on mobile devices in emerging markets. It is distinct from the company's main Android app and allows videos to be downloaded and shared with other users. It also allows users to preview videos, share downloaded videos through Bluetooth, and offers more options for mobile data control and video resolution.
The tech conceit of starting with nothing and growing a business into being profitable sounds appealing. Who wouldn't like to minimize initial investment? But the successes have typically required hundreds of millions, if not a billion or more, of investment to ultimately succeed. And there are many ways in which the grand concept can fall short the way theory sometimes does when faced with the reality of application.
Also in November 2017, it was revealed in the media that many videos featuring children – often uploaded by the minors themselves, and showing innocent content – were attracting comments from pedophiles and circulating on the dark web, with predators finding the videos by typing in certain keywords in Russian. As a result of the controversy, which added to the concern about "Elsagate", several major advertisers whose ads had been running against such videos froze spending on YouTube.
But what about the cost of servers, bandwith etc? I think it might be in the range of $750 million per year to as high as $1.5 Bn plus ( we will never know as Google never reveals cost of running youtube, and Google has invested heavily in this space ). I feel Youtube as a standalone business MAY NOT be as profitable a biz as Search and might never be since barely 10% of its content is actually monetizable. But for Google, with $30 Billion revenues, Youtube losses( even if money lost is as high as say $500 million per year) is chump change considering the strategic advantage it gives visavis competition. (Microsoft online businesses lost way more last 10 years). Youtube subsidy by Google has created a monopoly which has effectively destroyed all independent video ad network business plans.
Observing that face-to-face communication of the type that online videos convey has been "fine-tuned by millions of years of evolution", TED curator Chris Anderson referred to several YouTube contributors and asserted that "what Gutenberg did for writing, online video can now do for face-to-face communication". Anderson asserted that it's not far-fetched to say that online video will dramatically accelerate scientific advance, and that video contributors may be about to launch "the biggest learning cycle in human history." In education, for example, the Khan Academy grew from YouTube video tutoring sessions for founder Salman Khan's cousin into what Forbes' Michael Noer called "the largest school in the world", with technology poised to disrupt how people learn. YouTube was awarded a 2008 George Foster Peabody Award, the website being described as a Speakers' Corner that "both embodies and promotes democracy." The Washington Post reported that a disproportionate share of YouTube's most subscribed channels feature minorities, contrasting with mainstream television in which the stars are largely white. A Pew Research Center study reported the development of "visual journalism", in which citizen eyewitnesses and established news organizations share in content creation. The study also concluded that YouTube was becoming an important platform by which people acquire news.
In early May, Amazon announced a new service initially designed for "professional video producers." Launch partners include media firm Conde Nast, the "How Stuff Works" website and Samuel Goldwyn Films. Amazon Video Direct could compete for the young creative talent attracted to YouTube. As does YouTube, Amazon offers revenue-sharing and royalties for content that attracts a certain level of traffic.
But each of the three videos PewDiePie featured in his since-removed shoutout of the E;R channel featured fairly obvious examples of the channel’s offensive content — in fact, not only did part one of the Death Note review that Kjellberg said he liked directly invoke a racial slur in its video description (the description has since been edited), but the first 15 seconds of part two contain a blatant reference to a 2017 incident in which Kjellberg himself dropped a racial slur, strategically edited but unmissable if you’re familiar with the clip in question — which most of Kjellberg’s followers would reasonably be.
In October 2015, YouTube announced YouTube Red (now Youtube Premium), a new premium service that would offer ad-free access to all content on the platform (succeeding the Music Key service released the previous year), premium original series and films produced by YouTube personalities, as well as background playback of content on mobile devices. YouTube also released YouTube Music, a third app oriented towards streaming and discovering the music content hosted on the YouTube platform.