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This is a reasonable level of success for a new creator to aim to achieve in a year or two, so here's a rundown of how it makes money, and other ways that it could make money. YouTube advertising ...
The advertiser then pays for every time the advert is displayed to a user. Most system will use a method known as cost per thousand impressions. If a website publisher charges $4.00 CPM, the advertiser is paying $4.00 for every 1,000 ad impressions (each time the ad is shown 1,000 times). [1]
In certain cases, YouTube will pay creators a percentage of the advertising revenue for advertisements that are placed within and before or after videos. The approximate share of advertising revenue paid to the creators of monetized videos is reported to be 55%; in 2013, the average creator's income was estimated to be $7.60 per thousand views.
Cost-per-click (CPC) is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is: Cost-per-click ($) = Advertising cost ($) / Ads clicked (#) There are two primary models for determining pay-per-click: flat-rate and bid-based.
YouTube isn’t moving away from advertising. The video site rang up $9.2 billion of ad revenue in Q4, up from $7.96 billion in the year ago period.
Most sites that let you make money watching ads pay cents for viewing each ad and typically have higher thresholds for cashing out. This means it could take a considerable amount of time to get paid.