The Truth Behind YouTube Revenue: Views vs. Earnings Explained
You want to start a YouTube channel, but will it be lucrative? What is the breakdown of views to revenue? I wish there were a clear-cut answer, but for better or worse, YouTube monetization is a complicated topic.
If you're looking for a short answer, you can expect $0- $30 per 1,000 views. If you'd like to know why the gap is so big, let me introduce you to the long answer.
YouTube monetization relies on various metrics, with views often misleadingly representing potential earnings. Key elements like content types, engagement rates, audience demographics, and ad suitability significantly influence how much a creator ultimately makes.
So, to help you have a better understanding of what you can expect to earn we are going to cover the YouTube Partner Program, effective strategies to boost earnings, and the impact of niche selection on income.
How YouTube Monetization Works
To start earning money on YouTube, content creators must meet specific eligibility criteria. They need 1,000 subscribers and 4,000 public watch hours in the past year, or 10 million public Shorts views in the last 90 days. Once these milestones are reached, creators can join the YouTube Partner Program (YPP).
In the YPP, creators earn money through ad revenue shared with YouTube, which retains 55% of ad income from standard videos, and creators earn 45%. Creators have the option to use mid-roll ads on long-form videos (eight minutes or longer) to increase revenue.
Advertisers pay Google Ads money to have their ad appear before, during, or after videos on YouTube. Those ad costs are determined via an auction system, where bid amount and campaign budgets play a role in determining how much advertisers need to spend.
According to Google:
Cost per 1,000 impressions (CPM) is a metric that represents how much money advertisers are spending to show ads on YouTube. You’ll see a few different CPM metrics in YouTube Analytics:
CPM: The cost an advertiser pays for 1,000 ad impressions. An ad impression is counted anytime an ad is displayed.
Playback-based CPM: The cost an advertiser pays for 1,000 video playbacks where an ad is displayed.
Learn more here: Understand ad revenue analytics
Monetization Options:
Ad Revenue: Display and video ads, including mid-roll and non-skippable ads.
YouTube Shorts Fund: Revenue from ads displayed between Shorts.
Fan Support: Contributions from loyal subscribers.
Diversified Income Streams:
Premium Revenue: Earnings from YouTube Premium Subscribers (i.e. Memberships and Supers)
Digital Products: Merchandise or exclusive content. (i.e. YouTube Shopping)
Creators should consider diversifying their income streams. This strategy helps mitigate potential losses due to YouTube’s demonetization policies, which may limit ad placement on certain content, impacting earnings.
A strong subscriber count, engagement rates, and high-quality, original content are key factors to success on YouTube.
What is RPM (Revenue Per Thousand Views)?
For the creators we work with, we have seen Revenue Per Mille (RPM), which shows how much a creator earns per 1,000 views, typically between $5 and $15. RPM for YouTube Shorts is much lower, about $0.03 - $0.75. RPM varies based on factors like niche and audience demographics, along with the types of ads displayed. Some YouTubers report RPMs between $1.61 and $29.30 per 1,000 views, highlighting variations in earnings.
Learn more about checking your YouTube revenue here.
Factors Influencing YouTube Ad Revenue
Impact of Niche on Revenue Variations
The niche you choose affects your earnings. Competitive niches like digital marketing and personal finance have higher CPMs, around $12.52 and $12, respectively. High-demand topics attract more advertisers willing to pay more for ad space.
On average, YouTubers can earn from $0 to $30 per 1,000 views. Finance and tech niches often yield higher RPMs compared to entertainment or gaming. The type of ads also matters. Non-skippable ads bring in more revenue, showcasing the importance of selecting the right niche.
One of the biggest influences on ad revenue is the type of content you are making. Companies with more expensive products or services will be willing to spend more on advertising. This is good news if you make content that appeals to these expensive brands.
Here is a very simple example.
If you make videos about cats, cat food companies will probably be placing ads in front of your video. If Fancy Feast runs an ad with a CPM of $2.94, and you earn 1000 views that display that ad, you would earn roughly $2.94x45%= $1.32.
However, if you made a video about test driving a Tesla, and Tesla ran an ad for the keyword "Tesla test drive" with a CPM of $28.43, you could earn $28.43x45%= $12.79.
Learn more about how your niche impacts your revenue here.
Engagement Rates
Engagement rates are also key to boosting YouTube revenue. This is calculated by dividing total engagements (likes, comments, shares) by total views, then multiplying by 100. Higher engagement rates mean viewers are interested in your content, increasing the chance your videos are suggested to others. More likes and shares lead to better ad placements and more watch time, which can indirectly boost your earnings.
Learn more about how to check your YouTube Analytics data here.
Audience Demographics
The audience's location and age can significantly affect earnings from YouTube ads. Advertisers pay more to target audiences in wealthy countries like the US, UK, and Canada. The CPM also increases when targeting viewers aged 18 to 49 due to their higher disposable income. A highly engaged audience with many likes and comments can further improve your video's visibility and ad revenue.
Strategies to Increase Views and Earnings
Gaining views and making money on YouTube involves more than just uploading videos. Optimizing your video titles, descriptions, and tags can boost visibility in search results. Eye-catching thumbnails and engaging intros attract more clicks, effectively increasing your view counts. Smart ad placements, like mid-roll ads, maximize earnings without needing millions of views. Monitoring metrics through YouTube Studio, such as CPM and audience retention, refines your approach to increasing earnings per view. Moreover, diversifying your income streams through channel memberships, Super Chats, and affiliate marketing enhances overall profitability.
Effective Content Creation Techniques
Creating high-quality content is key to earning money and keeping your audience engaged. Regularly review performance metrics like watch time, audience retention, and CTR to shape your content strategy. A consistent upload schedule fosters a loyal audience base, proving more beneficial than chasing viral video hits. Engage with your viewers and maintain a professional social media presence to attract brand partnerships. Experiment with content styles, such as shorter videos or different thumbnail designs, to see what resonates with your audience and boosts engagement.
Providing Value
The biggest thing you can do to ensure higher earnings is to provide value to your audience. Value is key to getting people to engage, watch longer, and want to share the content with others. Value comes in a lot of different forms, but the majority of the time on YouTube, value is provided through entertainment or education. It's not enough to say the video quality is good, or the audio quality is good, or to include a clever edit with a relevant meme. Creating a video that is funny to you isn't even enough. You need to create content that your audience finds valuable.
TLDR; Conclusion: Maximizing Your YouTube Revenue Potential
Starting a YouTube channel can be lucrative, but earnings depend on many factors. Creators typically earn $0–$30 per 1,000 views, with revenue influenced by content type, audience demographics, engagement rates, and ad suitability.
To monetize, creators must join the YouTube Partner Program (YPP) by meeting one of these criteria: 1,000 subscribers and 4,000 public watch hours in the past year, or 10 million Shorts views in 90 days. Once eligible, creators earn from ad revenue, YouTube Shorts Fund, fan support, and diversified income streams like memberships and merchandise.
Ad revenue depends on Cost Per Mille (CPM), reflecting how much advertisers pay for 1,000 ad impressions. Revenue Per Mille (RPM), which is often lower than CPM, shows earnings per 1,000 views. Competitive niches like finance or tech yield higher RPMs compared to general entertainment. For example, a Tesla-related video could generate significantly more revenue per view than a video about cats due to higher ad rates.
Success strategies include optimizing video titles, descriptions, and thumbnails; engaging viewers with high-quality, valuable content; and maintaining a consistent upload schedule. Diversifying income streams and targeting engaged audiences in high-income countries also boost profitability. Additionally, strong engagement metrics, like likes and shares, increase video visibility and ad revenue.
Ultimately, providing educational or entertaining value to your audience is key to sustaining growth and maximizing earnings on YouTube.
