In the digital age, running a YouTube channel can be a challenging yet rewarding endeavor. It’s a platform that allows for creativity and innovation, but how does YouTube’s pay-per-view system work?

Many YouTube creators start their channels as a labor of love or a hobby. However, some, like MrBeast, reportedly earn an estimated $14 million a year from YouTube ads alone, excluding sponsorships or merchandise sales. This might lead you to wonder, “Why not me?”

Content monetization is a topic of great interest among creators of all sizes. If you’re new to YouTube or planning to join, you might be curious about the YouTube Partner Program and the potential earnings per view.

Yes, but not per video view. Instead, the platform compensates creators for the views they receive on their ads.

To clarify, to earn money from your YouTube channel, you must allow YouTube to run ads on your videos. A YouTube channel doesn’t generate revenue by itself. To earn money from ads, you must join the YouTube Partner Program (YPP).

The YPP allows creators to monetize their videos by verifying them and providing them with monetization tools. Given the vast number of channels on YouTube, some of which may contain copyrighted or low-quality content unappealing to advertisers, the YPP aims to filter out such content. 

To join the YPP, you must meet a few minimum requirements:

Adhere to the YouTube monetization policies

Reside in a region where the YPP is available

Have no strikes for violating YouTube’s community guidelines

Accumulate more than 4,000 public watch hours in the past 12 months

Have more than 1,000 subscribers

Create a Google AdSense account

Once your YouTube channel has been approved to participate in the YPP, you can sign the affiliate agreement and link your AdSense account to it. After that, YouTube will review your channel, a process that may take up to 30 days.

Once your YouTube channel is approved, you’ll gain access to monetization features in the settings. However, note that you may not be able to access certain features if you don’t have enough subscribers (for instance, the merch shelf requires at least 10,000 subscribers) or if YouTube moderators have restricted your account.

Contrary to popular belief, YouTube does not pay for video views. Instead, YouTube creators are paid per ad view. If your videos don’t have ads, you won’t earn money, regardless of how popular your videos might be.

When you sign up for the YouTube Partner Program (YPP), you can decide which videos to monetize. Ads can be disabled on videos deemed unsuitable for advertisers.

YouTube takes a 45% cut from the payments made by advertisers for each ad that runs on a channel, leaving the remaining 55% for the creator.

So, how many views do you need to make money on YouTube?

It would be fantastic to know exactly how much ad revenue you’ll earn each time someone watches your video. However, due to the complexity of YouTube’s algorithms, revenue per view can only be calculated on average.

Generally, videos that garner more views (with ads enabled) earn more money than those with fewer views. Your potential earnings also depend on your niche, location, and the category of your video.

Typically, videos about making money online, real estate, personal finance, and technology are more lucrative than those about pranks, fitness, or lifestyle. This is because AdSense operates on an auction-based system, and some keywords are more valuable to advertisers than others. We’ll discuss this in more detail at the end of the article.

It’s important to note that some viewers may not see any ads at all when calculating revenue based on video views. Reportedly, more than 40% of users use ad blockers. Although not all ad blockers work with YouTube, this growing trend will continue to impact creators’ earnings.

Moreover, there are over 50 million YouTube Premium subscribers today who do not see ads on YouTube videos. YouTube determines how much to pay creators based on the viewing habits of YouTube Premium users.

·         Between $2 and $12 per 1,000 views: Google’s AdSense calculator and self-reported earnings from creators across industries suggest that if your video falls under a category with competitive keywords and your viewers don’t use ad blockers, your potential ad revenue could be six times higher. Depending on your region and industry, your CPM (cost per thousand views) can range from $4 to $24. However, it’s important to note that 1,000 video views do not equate to 1,000 ad views. It’s reasonable to assume that only half of your views will be monetized. On average, across all industries, you could earn between $5 and $7 per 1,000 views.

·         Between $120 and $800 per 100,000 views: As your channel grows, you may not necessarily see an increase in ad revenue. Some viewers may not engage fully with your videos – they might watch short clips or stop watching once they see an ad. Consequently, your video CPM could be between $1.2 and $8, translating to $120 to $800 per 100,000 views.

·         Between $1,200 and $6,000 per 1,000,000 views: For YouTube creators, achieving a million views on a video is a dream come true. Once you reach this milestone, you’re not just a hobbyist anymore – you’re an influencer. You can monetize your audience in many ways other than running ads, such as through influencer marketing (sponsorships), channel memberships, and online courses.

When your channel reaches a significant size and influence, your CPM (Cost Per Mille) is unlikely to fall below $1.2 in terms of ad revenue. The earnings per 1,000 views can reach up to $6. As a result, you could earn between $1,200 and $6,000 for every million views on your videos.

Another factor that will affect your earnings per video is the type of ads you allow on your channel. YouTube offers various types of ads:

Skippable ads (can be skipped after 5 seconds)

Non-skippable ads (15-20 seconds in length)

Bumper ads (up to 6 seconds at the beginning of the video)

Overlay ads (text banner only)

Back-to-back ads (for videos longer than 5 minutes)

You can control which of these ads are displayed and where they are placed (pre-, mid-, or post-video). Since these settings affect engagement levels, they will also result in different CPM payouts.

YouTube is currently the second most popular website globally, attracting billions of people every month. It’s tempting to look for ways to make your content more advertiser-friendly. However, YouTube is a complex and ever-evolving platform, with advanced algorithms that demonetize content that doesn’t meet viewer expectations.

The best strategy we can suggest is to create the most authentic and engaging content possible. This way, you’ll organically gain more views over time, and the YouTube algorithms will work in your favor.

Latasha James suggests another way to maximize ad revenue is to strategically place ad breaks throughout your video. For instance, if you were doing a home renovation video, you could place an ad right before you show off the final reveal. Because you’ve built up anticipation, your audience is more likely to sit through an ad. However, ensure that you don’t overdo it. Placing too many ads in your videos can come across as spammy and make your viewers click away.

YouTube pays creators based on the number of views their videos receive, among other factors such as engagement and advertising revenue. The exact amount paid per view varies depending on factors such as the type of ad, the viewer’s location, and the content creator’s audience. In general, YouTube pays creators a percentage of the revenue generated from ads that appear before or during their videos. This revenue can be affected by factors such as ad block usage and the popularity of the video. Additionally, YouTube offers various monetization options such as channel memberships, Super Chat, and merchandise sales, which can provide additional revenue streams for creators.