Future in youtube monetization.

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Denis Krivochkin

New Member
Hey guys, probably everybody knows here that earnings from youtube ads drop SIGNIFICANTLY every year, a lot of people double their views during the year and still earn the same money (or even less) that they earned year before.

Of course, that will continue, there are more and more monetized youtube channels every single day, number of creators (video reuploaders, bs channels etc) are rising more quickly than the number of advertisers who want their ads to be shown on youtube, the competition between advertisers lowers, prices for ads lowers, creators revenue lowers. Add the rise of popularity of adblock and mobile here.

It's pretty much clear where it is going and will continue to go.

So what I think will happned in ~3 years time on youtube.
1)The earnings from ads will drop A LOT. Now I see people use "1$\1000" as some kind of "standard",(though a lot of people earn less than that even now)
In 3 years time the "standard" will be more like 0.2-0.35/1000 (adblock+mobile+lower competition between advertisers)

2)the whole "system" will start "balancing" itself. Nowadays "1$\1000" dream attracts ALOT of new video creators and people who want to earn decent money. When the reality will be like "0.3/1000" fewer people will join, more people will stop creating new content, earnings will stop to drop that fast..

3)earnings will pretty much "stabilize" in the range of 0.2-0.4 for several years until the increasing popularity of adblocking stuff/mobile will lower it even more,


The main problem is - there are BY FAR more kids who want to upload minecraft/s****y BESTTOP10OF bs videos than there are serious advertisers who want to show their ads. And there is nothing actually we can do about that.

And what YOU think will happen to youtube monetization in ~3-5 year time?
 
I used to doubt on monetization topic regarding CPM dropping every year. I just wish it does not happen. If it happens then probably I wont be continuing YOUTUBE anymore. YouTube should start a good strategy to pay the content creators because we deserve to get paid what we work for :)
 
I think what will happen is that YT will introduce some kind of Premium ads for the biggest channel in order to keep them creating content, otherwise everybody will bring their business elsewhere (or worse, find a proper job :eek: )

If I'm not mistaken, something like that is already in place (other than Youtube Red), guess they will build on that
 
It's a pipe dream but i do hope youtube offers revenue to actual content creators instead of the countless top/10/reacts/reuploads.
 
A few points.
The op mentions mobile. Pretty sure ads show on mobile devices these days.

Remember, if creators aren't making as much money, neither is Youtube as their 45% cut takes a hit as well.

As for the kids and their endless amount of gaming channels. My nephew started a channel a few months ago which I am subscribed to. I watch his new content when he uploads it. Honestly, I've only been served ads 2 or 3 times, and they were for video games!. So they know what they are doing as far as serving ads for new and low subscribed channels, and also when they do serve up an ad, it's targeted depending on the subject matter of the video. So my point is even though there are a lot of new channels starting every day, they don't really get much action as far as ads go.
 
Yes it is dropping, but I guess the more videos are out there, the smaller the competition for ads to be served, the cheaper the ads get, the more companies want to have ads served on youtube and then cpc rises again.
I doubt it will go lower than 1$/1000 views, even though that would be already very bad for years average.
 
Rod71 said:
Remember, if creators aren't making as much money, neither is Youtube as their 45% cut takes a hit as well.
Click to expand...

Except YouTube isn't getting their earnings from just one person. Even though ad rates may have taken a dip, there are also more advertisers out there now. Total income for YouTube will continue to go up.

The problem is that the number of channels is growing even faster and, with (many) more places to display ads, prices will continue drop and only effect us, not them.
 
Who would have thought YT would grow and evolve into where it is today?

Crystal ball gazing, particularly of anything related to IT, is not a very reliable science.

So I think this is all a storm in a tea cup.

Advertisers will continue to support and be attracted to successful channels - end of story.

So get cracking, become successful, get on that list.

YT will continue grow.

I think that's a more likely scenario.

Rob
 
I originally came to YouTube in 2006, with a very different channel from the one in my signature. Back then, YouTube was a place to show off your media creativity, and still should be, IMHO.

So when I see tons of posters on this forum in general saying "If the CPM drops much farther I will take my "video business" elsewhere" It really pisses me off. With so many users on the platform to begin with, it's madness to expect any but a privileged few to become so-called "YouTube Millionaires", just as it's madness for every director, actor or actress, singer or band to expect to become an Oscar or Grammy winner.

"Taking your video business elsewhere" won't work very well either. Just Google "video monetization", and what you will find is scores of sites who will monetize your videos, oh yes; but A: you must pay a high monthly or yearly fee just to obtain the service, and B: you must host the resulting monetized videos on your own web site, and hope for the right amount of traffic to make it all worthwhile. The only other free monetization platform I know of is Dailymotion, and they are less popular than YouTube; you will earn even more slowly there.

People, as many before me have said, if the only reason you came to YouTube is to make money, then you joined for the wrong reason. Either get a job in the real world, or become a successful entrepreneur, and you will do much better, I promise!
 
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I have not seen any significant drop from 2014 to 2015..

YouTube's been doing a ton of work in 2015 to rid the site of all the re-uploading/ copyright/ football/ spam channels (which made up multiple billion monthly views) so that will help CPMs go up in 2016.
As for "competition" between advertisers, Online video spend goes up hugely YoY not down..

Also, YouTube average CPM is around ~$7/1000, RPM is around $2.40/1000 so $1/ $0.2 is quite off :p
 
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