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Now I would like to calculate estimated revenue of some hypothetical channel with the help of “YouTube money calculator” developed by Social Blade1. For example, a channel creator gets 60500 daily views, estimated CPM is $0.25 USD - $4.00 USD. In this case estimated daily revenue will be $16.25 - $260.00 and estimated yearly revenue will be $5,850.00 - $93,600.00. Important to say is, this is not the final revenue, that creator gets, because he must share his profit with YouTube (website takes 45%). YouTube offers two forms of ads - standard, that we are used to watch on a classic TV, that appear before, during or after the video and skippable ads (TrueView), that user can skip after 5 or 10 seconds and continue to watch the content he is interested in. There are two types of TrueView – skippable ads and ads (TrueView video discovery), they appear near other YouTube videos, on the YouTube homepage, on the YouTube search pages, or on Google search, in other words in places where users discover new content. When user clicks on his video, a creator receives money for it. But with condition, that viewer watches at least 30 seconds of his video. That means that owner of video gets paid only when someone chooses to interact with his ad (Google, 2018b). “Since YouTube advertising has become so important not only for revenue but brand impressions, Pashkevich, et al. (2012) analyzed advertisements on this platform. The authors compared the effectiveness of traditional in-stream ads to the TrueView in-stream advertising, which refers to the new YouTube feature that allows individuals to skip the advertisement being presented after a few seconds. The study found that skippable advertisements were effective on a perimpression basis and that formats like TrueView in-stream ads could improve the viewing experience for users and at the same time be effective for the company launching the ad” (Rodriguez, 2017). To start monetizing content on YouTube, a creator has to join YouTube Partner Program. The company put forward this idea in 2012. YouTube Partner Program allows users, whose videos are getting more than a certain number of views get a revenue from it by adding ads to their content. Of course, they share a profit with YouTube. As known, the company gets 45% of revenue. Some kind of advertisement has already existed before, but the new model was simpler and had precise conditions of participating. To join YouTube Partner Program content producers has to go to their personal accounts on website and click on a relevant button. 1 Available at https://socialblade.com/youtube/youtube-money-calculator 22PDF Image | Youtube a new era of TV
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