Launched in 2005, YouTube is a web platform for sharing videos, uploading various movie clips, recording, audio files, music, TV shows, and other related content. No wonder why it is making hundreds of billions of revenue because of these interesting and enticing features. To date, YouTube was tagged as the second most popular website worldwide – next to Google Search.
How does YouTube generate money?
YouTube generates money by way of clicks on advertisements and views. This depends on how long the viewer watched a certain video or clicked a certain YouTube ads.
Have you noticed in-stream videos played while watching on YouTube? Or banners displayed on-screen while browsing? These are YouTube Ads. YouTube Ads are marketing techniques used by video creators to win attention. They insert ads in between videos to market their work. Video creators gain revenues from these YouTube ads, only if they are part of the so-called YouTube Partner Program (YPP). A video creator should have at least one thousand (1000) subscribers, garnered at least 4,000 total hours of public watching in a year, and an Ad Sense linked account to qualify to apply for YouTube Partner Program. This only applies to video creator who has monetized video channels. Statistics show, that a monetized videos may earn a dollar for every 50 views. Some vary depending on the suppliers or advertisers.
Not until a new policy on YouTube ads came out.
An official tweet on November 19, 2020 from Team YouTube says, “Yes, the new Terms of Service allow ads to run on videos from non-YPP channels (so long as the video meets ad-friendly guidelines). Creators in YPP still receive the same rev share, & we encourage all eligible creators to apply–nothing is changing w/ the requirements or process.”
In this regard, non-monetized videos should now include pop-up ads, banners, YouTube Ads along video clips. This means that even small creators can now expect interruptions while watching YouTube videos – whether they like it or not. These inserted ads seem to be an alternative way for the company to regain its wealth.
Due to the pandemic which started in the second quarter of 2020, statistics have shown that YouTube revenue went down. For the first quarter, YouTube revenue was reported at $4.04 Billion, while in the second quarter, it cooled down to $3.81 Billion. Basically, even YouTube was affected by the coronavirus pandemic. As a resolution to recover losses or decrease in revenue, this might be a sound recourse.
It is quite annoying for viewers and for video creators as well, especially for non-monetized videos. Imagine you will consume a long time to watch ads along the way? Some may pop-up on your screen, but won’t gain you any centavo. These inserted ads are really time-consuming for you need to spend 5 seconds or up to 20 seconds to let these YouTube ads pass on your screen.
If you are a beginner or small creator of non-monetized videos, this may be a way of motivating you or a means of encouragement to monetize your channel. Since policy on monetization remains the same. If YouTube will run insert ads on all videos, why not monetize your channel? You may take the opportunity to earn money out from the clicks and views.