Individuals and businesses make millions of dollars through YouTube advertising, but there are risks to using a platform controlled by another company. Not only is there a chance that a change in Google's search algorithms could make or break video traffic, but Google also takes a hefty 45 percent cut of revenue from video advertising. Nevertheless, YouTube is a massive platform and is the world's second largest search engine after Google, which includes YouTube videos in search results. If the benefits of reaching YouTube's large audience and having Google handle the most labor-intensive parts of building an advertising network outweigh the costs and risks, this platform is a great resource for turning videos into cash.
From the looks of things, YouTube's top-line growth hasn't been hurt much by worries among some companies -- for example, Cisco Systems (CSCO) , which just announced it's halting its YouTube ad spend -- about the running of their ads against content they find to be inappropriate. It also doesn't appear to have been hurt badly by YouTube's attempts to appease such advertisers by "demonetizing" videos that its algorithms deem unsuitable for running ads against, or the backlash such actions have sparked among affected content creators.
It's worth noting here that even Twitter (TWTR) , which is seeing minuscule monthly user and ad revenue growth, is valued at more than seven times its 2018 revenue consensus. And Snap (SNAP) , which (though seeing strong revenue growth) is contending with slowing user growth and faces big questions about its long-term profitability, is worth over 11 times its 2018 revenue consensus.
In May 2011, 48 hours of new videos were uploaded to the site every minute,[23] which increased to 60 hours every minute in January 2012,[23] 100 hours every minute in May 2013,[24][25] 300 hours every minute in November 2014,[26] and 400 hours every minute in February 2017.[27] As of January 2012, the site had 800 million unique users a month.[28] It is estimated that in 2007 YouTube consumed as much bandwidth as the entire Internet in 2000.[29] According to third-party web analytics providers, Alexa and SimilarWeb, YouTube is the second-most visited website in the world, as of December 2016; SimilarWeb also lists YouTube as the top TV and video website globally, attracting more than 15 billion visitors per month.[1][30][31] In October 2006, YouTube moved to a new office in San Bruno, California.[32]
Of course, YouTube is funded by advertisers. So it makes sense to pay attention to their wants and desires. But under the current model, brands’ reactions are often a placeholder for third party regulation. And at the moment – as content creators are sketching the line for appropriate content – it is often advertisers who have the final say about acceptability.
In August 2008, a US court ruled in Lenz v. Universal Music Corp. that copyright holders cannot order the removal of an online file without first determining whether the posting reflected fair use of the material. The case involved Stephanie Lenz from Gallitzin, Pennsylvania, who had made a home video of her 13-month-old son dancing to Prince's song "Let's Go Crazy", and posted the 29-second video on YouTube.[325] In the case of Smith v. Summit Entertainment LLC, professional singer Matt Smith sued Summit Entertainment for the wrongful use of copyright takedown notices on YouTube.[326] He asserted seven causes of action, and four were ruled in Smith's favor.[327]
YouTube's still-rapid viewing growth -- driven by smartphones and to an extent connected TVs -- has a lot to do with its revenue momentum. At last week's NewFronts online video ad event, YouTube disclosed it now had over 1.8 billion monthly logged-in viewers, up from 1.5 billion as of last June. And back in February 2017, YouTube said it was seeing over a billion hours per day of viewing -- that's about three times what Netflix (NFLX) witnessed on a record-breaking day in January, and 10 times what YouTube saw back in 2012.
The great thing about sponsorships is that you don’t have to give YouTube a cut. Plus, you can negotiate whatever contracts you want based on impressions and the size of your audience. In most cases, the amount of revenue you generate from sponsorships is substantially more than YouTube ad revenue. (Meanwhile, you can still generate ad revenue. So it’s like having two sources of income from the same video.)

During the same court battle, Viacom won a court ruling requiring YouTube to hand over 12 terabytes of data detailing the viewing habits of every user who has watched videos on the site. The decision was criticized by the Electronic Frontier Foundation, which called the court ruling "a setback to privacy rights".[320][321] In June 2010, Viacom's lawsuit against Google was rejected in a summary judgment, with U.S. federal Judge Louis L. Stanton stating that Google was protected by provisions of the Digital Millennium Copyright Act. Viacom announced its intention to appeal the ruling.[322] On April 5, 2012, the United States Court of Appeals for the Second Circuit reinstated the case, allowing Viacom's lawsuit against Google to be heard in court again.[323] On March 18, 2014, the lawsuit was settled after seven years with an undisclosed agreement.[324]


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.
Conversely, YouTube has also allowed government to more easily engage with citizens, the White House's official YouTube channel being the seventh top news organization producer on YouTube in 2012[266] and in 2013 a healthcare exchange commissioned Obama impersonator Iman Crosson's YouTube music video spoof to encourage young Americans to enroll in the Affordable Care Act (Obamacare)-compliant health insurance.[267] In February 2014, U.S. President Obama held a meeting at the White House with leading YouTube content creators to not only promote awareness of Obamacare[268] but more generally to develop ways for government to better connect with the "YouTube Generation".[264] Whereas YouTube's inherent ability to allow presidents to directly connect with average citizens was noted, the YouTube content creators' new media savvy was perceived necessary to better cope with the website's distracting content and fickle audience.[264]
Want more ways to make money blogging and on sites like YouTube? Check out Make Money Blogging, a step-by-step into nine ways bloggers make thousands a month. I start with the easiest and fastest ways to make extra cash before detailing the strategies that make thousands a month. No fluff or general ideas here, just a step-by-step guide to getting each strategy set up to make money every month.
The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.

The good news is that income is rising, but efforts to generate a broad and loyal audience that turn to the service on a regular basis for original content appear to have hit a wall. The Journal points out how three years ago YouTube spent hundreds of millions of dollars on original content to build new channels, only to see many of them fail. Getting people to visit the site directly and regularly because there’s something specific they want to see, rather than dropping by occasionally via a link on another site or online service, appears to be a big challenge for the company.

Her answer was simple: “Bright lights, extraneous elements, and faster pacing.” In one of the videos I had her watch, a little boy dances flanked by two cows on a stage. A crowd waves its hands in the foreground. Lights flash and stars spin in the background. The boy and the cows perform “Head, Shoulders, Knees, and Toes,” and as they do, the dance floor lights up, à la Saturday Night Fever. Johnson told me all that movement risks distracting kids from any educational work the videos might do.
YouTube already offers advertisers the opportunity to withdraw from advertising on some videos – such as LGBTQ content or discussions of mental health – if it doesn’t sit well alongside a brand’s message. It was revealed last year that this can sometimes then lead to content being demonetised. In other words, the creator does not receive a share of ad revenue for that video.
The second involves YouTube’s annual year-end “Rewind” video. The 2018 video, released on December 6 and described by YouTube as “a who’s who of internet culture,” omitted a number of popular YouTubers, most notably PewDiePie. In response, PewDiePie’s followers started a campaign encouraging people to vote down the video, with the result that within a matter of days, YouTube’s 2018 Rewind video has rapidly overtaken an eight-year-old Justin Bieber single to become the most disliked video in YouTube history, surpassing Bieber as of early Thursday morning at 9.8 million dislikes and counting. By Thursday afternoon, the dislikes had topped 10 million.
In some countries, YouTube is completely blocked, either through a long term standing ban or for more limited periods of time such as during periods of unrest, the run-up to an election, or in response to upcoming political anniversaries. In other countries access to the website as a whole remains open, but access to specific videos is blocked. In cases where the entire site is banned due to one particular video, YouTube will often agree to remove or limit access to that video in order to restore service. Businesses, schools, government agencies, and other private institutions often block social media sites, including YouTube, due to bandwidth limitations and the site's potential for distraction.[397]

On one side lies many overlapping subcultures that make up huge swaths of the YouTube populations: its tremendous gaming communities, including Let’s Play-ers, live streamers, machinima-style editors, and vloggers; its prank cultures and their overlap with stunt personalities like Jake and Logan Paul; and its increasingly insidious alt-right presence.
The power of YouTube's ad-targeting abilities -- enabled by both its own user data and outside data it can get with Google's help -- have also helped its cause. So have its investments in building quality measurement tools that help companies gauge the impact of a video ad on things like awareness of a product and attitudes towards the brand that's selling it.

Once you link your AdSense account to your YouTube account, you will receive credit for each video’s monthly revenue. Once you accumulate $100 in earnings, Google will issue a payment to your bank account. You can choose to be paid via direct deposit (not available in all countries) or check—direct deposit is the fastest method and has no fee. If you are located in the United States and earn more than $600 per year, Google will issue a 1099 form. Either way, you are required to pay income tax on your earnings.
The men know this with quantitative precision. YouTube analytics show exactly when a video’s audience falls off. ChuChu and other companies like it—whatever their larger philosophy—can see exactly what holds a toddler’s attention, moment by moment, and what causes it to drift. If a video achieves a 60 percent average completion rate, ChuChu knows it has a hit. Using these data doesn’t let it “crack the algorithm”; everyone has access to a version of these numbers. Instead, Chandar uses the analytics to tune his and other creators’ intuition about what works.
As Grayson notes, PewDiePie’s endorsement of the E;R channel continues a long trend of the vlogger using his influence to normalize white supremacist alt-right rhetoric to an alarming — and, on YouTube, increasingly widespread — degree. In 2016 and 2017, PewDiePie faced intense backlash for multiple instances in which he promoted Nazi symbolism and anti-Semitism, including a video in which he threw a Nazi “heil” salute, and one in which he hired a pair of performers from a freelancer website to hold up a sign reading “Death to all Jews,” ostensibly as a satirical exercise. He followed that so-called stunt with a video where he used a racist slur during a gaming live stream.
This might not exactly seem like a tragedy. After all, Americans watch a lot of TV. By the time Nielsen began recording how much time Americans spent in front of TV screens in 1949–50, each household was already averaging four hours and 35 minutes a day. That number kept going up, passing six hours in 1970–71, seven hours in 1983–84, all the way up to eight hours in 2003–04. Viewing finally peaked at eight hours and 55 minutes in 2009–10. Since then, the numbers have been gliding downward, with the most recent data showing Americans’ viewing habits edging under eight hours a day for the first time since George W. Bush’s presidency.
The YouTube interface suggests which local version should be chosen on the basis of the IP address of the user. In some cases, the message "This video is not available in your country" may appear because of copyright restrictions or inappropriate content.[200] The interface of the YouTube website is available in 76 language versions, including Amharic, Albanian, Armenian, Bengali, Burmese, Khmer, Kyrgyz, Laotian, Mongolian, Persian and Uzbek, which do not have local channel versions. Access to YouTube was blocked in Turkey between 2008 and 2010, following controversy over the posting of videos deemed insulting to Mustafa Kemal Atatürk and some material offensive to Muslims.[201][202] In October 2012, a local version of YouTube was launched in Turkey, with the domain youtube.com.tr. The local version is subject to the content regulations found in Turkish law.[203] In March 2009, a dispute between YouTube and the British royalty collection agency PRS for Music led to premium music videos being blocked for YouTube users in the United Kingdom. The removal of videos posted by the major record companies occurred after failure to reach agreement on a licensing deal. The dispute was resolved in September 2009.[204] In April 2009, a similar dispute led to the removal of premium music videos for users in Germany.[205]
In May 2013, creation of live streams was opened to verified users with at least 1,000 subscribers; in August of that year the number was reduced to 100 subscribers,[106] and in December the limit was removed.[107] In February 2017, live streaming was introduced to the official YouTube mobile app. Live streaming via mobile was initially restricted to users with at least 10,000 subscribers,[108] but as of mid-2017 it has been reduced to 100 subscribers.[109] Live streams can be up to 4K resolution at 60 fps, and also support 360° video.[110] In February 2017, a live streaming feature called Super Chat was introduced, which allows viewers to donate between $1 and $500 to have their comment highlighted.[111]
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