How YouTube earns money? 13 May, 2020   

YOUTUBE BUSINESS MODEL

Broadcast Yourself!

You must have spent your daily time on this application. Be it for some cool photography tricks in your creative time, DIY’s for your craft time, songs to revive your mood, trailers or teasers to watch movies, educational videos to boost your knowledge, motivational videos to cope up in the environment, or just randomly watch to pass your time, and the list is long.

So, which is this app?

Yes! we are talking about “YOUTUBE”.

With over 2 billion users that is almost one-third of all the people on the internet, YouTube was founded by Jawed Kim, Steve Chan, and Chad Harley in 2005.

We all are aware that we can earn money on YouTube by posting videos on it. But do you ever come across the thought how YouTube earns money? Now, that’s an interesting viewpoint.

To reach the answer of this question. We need to understand how YouTube works?

The reason behind the rapid growth of this google owned website is that it allows its users to share videos, like them and comment on them. Apart from this service, it also provides other platforms for games and music. The working of YouTube can summarize in the following way:

1.     YouTube videos

It allows you to upload videos, share them, watch them later, etc. A video can be made publicly available to anyone, or can be shared on any platform.

2.     YouTube channels’

This can help you increase your range of business. It has an about section where you can describe your business and give the further contacts. Playlists can be created on your channel to organize your videos.

3.     YouTube advertising

It allows businesses to promote their video on the basis of interests, demographics, or topics, etc.

Advertisers pay YouTube per view on the video. You can choose where your video will appear, format of the video, and even how much you can pay per view.

4.     YouTube analytics

It is a self-service analytics and reporting tool. It provides data about every video you have posted so you can keep a track of the views, the location of the views.

BUSINESS MODEL OF YOUTUBE

It can be classified as an advertisement-based business model. The company gets over 1. 8 billion users every month. YouTube does not charge any fee from its users and this the reason that it attracts this number of visitors and this fact attracts the number of advertisers. It provides advertisers with three options:

1.     Sponsored videos- It pays the YouTube according to the number of views it receives on the ad selected. This method is known as SERP advertising. The sponsored video is placed on the top of the videos and its find is based on specific keywords. 

2.     Embedded videos- The videos played at the beginning of the videos is known as embedded videos. The payment method is the same that is on the basis of the number of views. A portion of the advertisement fees is paid to the creator of the video too.

3.     Landing page advertisements- These are the videos that are displayed on the home page of YouTube. This is a banner style advertisement i.e. the advertisement can place both pictures and videos to convey their message aloud.

Hence, the revenue earned depends on the number of visitors and viewers.

Some other ways by which YouTube earns money are:

1.     PREMIUM SUBSCRIPTION
YouTube has also started to adopt a new way to earn money by subscription. t provides various services to its users at a minimal cost. The services included in the pack are as follows:

·       Ad-free videos-You can watch videos without any interruptions.

·       Save offline- You can save videos on your devices to watch them later.

·       Background play- You can listen to videos while using other apps.

·       YouTube kids – Ad-free and offline play in the offline app.

At just Rs.129.00/month (but it differs for some countries).

This is allowed for YouTube, YouTube Gaming, and YouTube Music app.

2.     CHANNEL MEMBERSHIP:

This feature allows YouTube partners to deeply engage with their fans and earn more apart from advertisements. This feature puts a join button on their channels and video pages. This also allows the partners to offer special offers like discounts, merchandises, etc on their products to the subscribers. 

3.     YOUTUBE TV:

It is an exclusive US line service which allows its users to watch cable channels like ABC, NBC, FOX, ESPN, Disney and many more on YouTube. These channels are available only after payment of some subscription. YouTube TV can be streamed on any device with complimentary Chromecast.

THANKYOU FOR READING!