Giving Creators What They Deserve
In recent years, social media companies have issued significant resources and money to online producers. YouTube wants everyone to know that it pays the most.
Google’s media division published that it splits advertising sales with over 2 million video producers. YouTube has paid out more than $30 billion in ad revenue, merchandise revenue, and other service features to artists in the last three years.
The company claims it paved the way for such expansion by making the site more advertiser-friendly.
In an interview, YouTube’s chief product officer, Neal Mohan, said, “Our responsibility as a global platform has created this place that works.”
In 2007, YouTube began splitting ad sales with creators, eventually ending in a sprawling system with few governing rules. Sharing its sales came to a head when advertisers boycotted YouTube due to inappropriate videos. The service drastically reduced the number of paid channels at the start of 2018, focusing on those that met viewership thresholds and guidelines.
YouTube Surviving in a Sea of Competitors
The number of new channels on YouTube is now increasing again. According to YouTube, the number of new channels in its advertising program doubled in 2020.
Major competitors such as Facebook, TikTok, and Spotify have all attempted to attract creators away from YouTube with tools and payments, but none has made significant progress. To jump-start growth, Facebook has even pledged not to take commissions from creators until 2023.
YouTube takes 45% of all video ad sales. Mohan stated that he had no plans to change this. “When I talk to creators, it’s always about expanding the overall pie,” said Mohan. “A share of $10 is always preferable to a share of $1.”
YouTube also shares advertising revenue with traditional media outlets that run videos. Mohan did not say how much of the $30 billion went to those companies, but he did say that a “huge, huge chunk” of the money went to independent creators and musicians.
Gaining the Upper Hand
YouTube values its creators by paying them for making content. Advertisers should take advantage of this and start prioritizing YouTube marketing. With more content on the platform, there will be no shortage of advertising opportunities.
To make it a lot easier, TubeSift can help advertisers dial in their placements faster. Also, Video Ad Vault will help advertisers gain an unfair advantage about knowing what is working on YouTube right now because you can easily search hundreds of thousands of video ads quickly. You can also keep watch on your competitors’ video ads.
- Youtube has paid out $30 billion to creators as the competition for online content intensifies From Fortune
- What Ads Are Your Competitors Running? from TubeSift Blog
- YouTube Ads Workflow Will Benefit Small Businesses from TubeSift Blog
- How to Reach Eager Audiences with YouTube Ads from TubeSift Blog
- 5 Ways to Identify your Targeting with Custom Audiences from TubeSift Blog