Casey Neistat is one of the most popular vloggers on YouTube, with over 4 million subscribers, and recent video views of 2+ million! Now that is what I call #winning at YouTube!
Most people, including myself, would think that someone as successful as Casey would definitely be getting paid for all of his content – the misconception being the basis of what they are being paid for.
In all honesty, I thought YouTube paid YouTubers per view and per subscriber, and boy was I oh so very wrong.
It turns out that in order for YouTubers to monetize their videos they have to go through AdSense.
AdSense is an advertising placement service that website owners and YouTubers can use in order to earn money – through displaying targeted ads on their content. So when you see an ad pop up while you are watching a video, that is good old Google targeting you (which is when you instantly regret Googling super weird stuff!)
So through AdSense YouTubers can display ads, which is how they earn their money.
But there is not only one advertising monetisation option- YouTubers have two major options, as highlighted by Video Power Marketing.
OPTION 1: Cost Per Click (CPC)
With this option, brands pay for the amount of clicks their ad gets. If the viewer doesn’t click the ad, the content creator doesn’t get paid for it.
OPTION 2: Cost Per View (CPV)
This option pays YouTubers based on the amount of views an ad gets – however; the ad must be viewed for at least 30 second and/or half of the ads length.
So now we know a little more about how monetisation and YouTube works, lets go back to one of my favourite and highly successful YouTubers, Casey Neistat.
Casey, a New York residing daily vlogger and film maker gives viewers a taste of his daily life hanging out around New York, working with celebs such as Karlie Kloss and travelling all over the world. Just your average Joe – NOT!
As I previously highlighted, Casey’s videos and subscribers are in the millions, and because of this, would be a highly valuable asset for a business to try and make money on through advertising. This too could be said for Philip DeFranco and Jenna Marbles + So many more! – highly popular YouTubers with loyal and targeted followings.
So what can businesses do with CPC and CPV advertising to increase brand engagement?
Well, knowing that these YouTubers have loyal followings, brands could use these viewerships to their advantage – each YouTube influencer having an abundance of views on their videos each and every day!
Because of this, brands can ensure they are reaching out to a specific profile and volume of viewers; generating vast amounts of awareness to that targeted audience, even if the ad is not clicked or watched for its entirety!
Some other great reasons to use CPV and CPC YouTube advertising?
- It is highly targeted by Google AdSense.
- You don’t have to pay for the ad spot until it has been clicked or viewed for the specific time by the viewer.
- You can measure your return on investment to see how effective your ads are.
Now knowing brands and AdSense via Google are looking out for good content and strong followings to place advertising, what can YouTubers and content creators do to make sure their videos are getting the most out of their monetisation?
Use targeted key words & create more content.
Some targeted key words are more valuable then others, therefore, advertisers are willing to pay more for them.
For instance, the words “Car Reviews” may be viewed as more valuable for a car dealership or brand due to the ROI being higher – those key words potentially targeting people more open and willing to buy a car.
In addition, creating new content frequently can ensure you get the most monetisation out of your videos – as the more you make, the higher the chance of a greater income stream.
So if you are planning on starting a monetised YouTube channel, I would definitely use these tips along with your understanding of CPC and CPV to your advantage, as…
YouTube advertising is here to stay!
Do you have a favourite YouTuber? What types of ads do you normally see before their videos start?
Until Next Time,
Chloe – The Stressaholic xx
Confessions of a Stressaholic. 
Hey Chloe!!
Firstly, this is a really good read! I love your light hearted tone!
You mention some interesting points regarding YouTube advertisements! Firstly, one of my fave YouTubers is Shani Grimmond because she isn’t afraid to be truly herself online and has some killer makeup looks. But she has admitted choosing not to get paid advertising because it is annoying for her fans (another reason why she’s great!).
This bring me to my next point – I don’t get advertisements on YouTube through my laptop because I have installed adblocker. My primary reason for doing so is that I find them annoying. When i want to watch a video, i don’t want that to be held up by ads that are often irrelevant to my life and interrupt my reasons for being on YouTube in the first place. Before I installed adblockr, I cannot think of one advertisement where I actually watched to the end unless i was forced to.
And I am not the only one who hates ads and have installed adblocker – check this guy out ==> https://www.quora.com/How-can-I-block-annoying-adverts-on-Youtube
So in saying that, do you think it is and will be in the future an effective advertising strategy for businesses considering more and more people are trying to avoid ads and install software? And how effective are they to people who are forced to watch them or are exposed to them (f they don’t have adblocker)? What are you thoughts?
From someone who is passionately against YouTube ads,
Kelly x
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Hi Kelly!
Thank you for your comment! I haven’t heard of Shani Grimmond before, so I will have to make sure I go check out her channel 🙂
You are definitely not alone regarding adblocker, and although I don’t personally use it, I know plenty of people who do.
I think that advertising in general is something that people can choose to ignore- however some ads harder to ignore then others. For instance, TV advertising is still hugely popular even with people opting for TV options that allow them to fast forward through ads or eliminate ads completely. Although brands know about fast forwarding and streaming services, they still choose to advertise on TV because that might be the best option for their brand in regards to their marketing strategy and target audience.
I think this too could be applied for YouTube advertising. Brands know that adblocker exists and that many consumers use it, but they may still find that their target audience use the platform, and therefore decide that YouTube advertising would be effective for them.
When it comes to being forced to watch the ad, I generally find that the quicker the ad the better, as I don’t want to sit through a long ad, which is why I think major brands such as McDonalds and Hungry Jacks are opting for 5 second YouTube ads. Long ads you have to watch before you can see a YouTube video can be super frustrating, so maybe big brands have acknowledged that frustration and stripped back their YouTube advertising so much that by the time the 5 second ad plays it is practically over (which is great!). I’ll have to have a look into it and find out! 🙂
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This is a really interesting post! I also had the misconception that YouTubers were paid per view/subscriber, so this is really eye-opening! So many people these days rely on YouTube as their primary source of income so it is quite interesting to know how they get paid.
This blog post really highlights how YouTube can use its platform to engage content users and organisations wishing to advertise- what a great business model for them!
I also agree with your comment above. I will watch an ad if it is short. If it is long, I get annoyed and try to skip it. If a brand can create a short but engaging advertisement, then they will get my attention (even if I dont relate to the brand, I’ll happily watch it). I think the key for YouTube ads is to make something that is short and sweet.
This was such an enjoyable article and I have just watched a Casey Neistat video. Wow! He now has a new subscriber! What cool and exciting video content – thanks for sharing Chloe!
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Hi Maree!
Thanks for your comment!
This topic was really eye opening as it was interesting to find out how YouTube monetisation works with CPC and CPV.
I am very similar to you, as if a YouTube video is short and is on a brand or about a topic I like, I don’t mind watching it. Short and sweet YouTube ads that convey their marketing message in an effective way definitely sound a lot better then sitting through long 30 second+ ads!
It’s good to hear that you liked Casey Neistat – I think his videos are great 🙂
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Your style is very unique compared to other people I have read stuff
from. Many thanks for posting when you have the
opportunity, Guess I’ll just bookmark this blog.
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