Youtube is something that kids and teenagers have grown up with. We are aged at the same time the technology around the world did, allowing us to better understand it.
Before anything else, let us first define Youtube.
What is Youtube?
Youtube is a social media platform that allows its users to watch and create videos for anyone to watch. As of writing, Youtube has 2.6 billion users with over thousands being full-time content creators.
The website is also said to be the second-most popular search engine after Google (Global Reach, 2020). As experienced by everyone, we often search on Youtube how to do things and how to make things. Youtube is also a place where most people find inspiration.
Youtube Content Creators have been famous since the platform started in 2009. Some notable names are Anthony Padilla (from Smosh) and Ryan Higa (nigahiga).
Anthony, along with Smosh – a group of comedic content creators who post their videos under the same name, is still active today. Anthony’s personal channel currently has about 6,700,000 million subscribers, making him the 601st person with the most subscribers on the platform.
He also moved away from comedy and is now known for interviewing people. Anthony currently has a net worth of 3,000,000 million US Dollars. Ryan Higa, on the other hand, is a solo content creator famous for his comedy skits as well.
Sadly, Ryan’s last video was uploaded 2 years ago. Despite that, Ryan currently has 21, 200,000 million subscribers, making him the 176th content creator with the most subscribers on the platform.
Ryan currently has a net worth of 10,000,000 million US Dollars. It should be noted that these two content creators took years to build themselves and their own brands.
How Does Youtube Calculate the Salary?
With that said, it is obvious to say that Youtube is used differently by each person. One would use it for entertainment while another would use it for education. One could use it solely for playing music while learning while another can use it to treat himself at the end of the day.
According to Doc Adam, an English Doctor who creates content on Youtube, the criteria are said to be based on the following:
- Country of the viewer
- The livelihood of the viewer
- Family Description of the viewer
When you first create your account, Youtube asks for your personal data which allows them to categorize you and use that as a basis for how much money the Youtuber you watch should earn. Youtube pays content creators more if their audience is people with high-paying jobs. This is because the audience will have the money to spend and are more likely to purchase the advertisements they show within the website and application.
Another criterion is where most of the audience lives. Based entirely on how much is their currency worth, Youtube categorizes each content creator’s audience and uses it as part of how much they must earn.
If the content creator’s audience is from first-world countries like the USA, then they would earn more than they would if the majority of their audience lives in a third-world country.
Lastly, the audience’s family description. If the majority of the viewers are single people with money to spend, it is safe to assume that they would be able to have disposable income that could potentially go to Youtube. If the viewers are on the lower part of the social class, Youtube would be paying the content creator less.
As mentioned, Youtube uses these criteria to find out the estimated revenue a creator should have. Aside from these, content creators can also be paid through:
- Cost per View (CPV)
- Cost per Click (CPC)
- Cost per Impression (CPM)
As defined by Youtube themselves, Cost per Impression is the cost per 1000 impressions on a video that includes an advertiser’s product or service. An ad impression is counted as long as the product is displayed. It is also the most common way that Youtube uses as a basis for a salary.
You may notice that most Youtube videos have at least 2 ads in a 15 minute long video. If those ads are shown, even if it was skipped, it counts as an ad impression. The ads can be personalized which allows the users to watch ads that they will engage in therefore creating more revenue.
How Much Does Youtube Pay for 1 Million Views?
It all depends on whether or not the video is monetized. A monetized video earns more as more ads are shown, while demonetized ones earn less. In Doc Adam’s video explaining the same thing, he states that a million views can earn up to 220 US Dollars which would be converted to 12,500 PH Pesos.
This is incredibly low since in the same video, viewers were asked about this and they tend to think that a million views will earn you around 50,000 PH Pesos.
Of course, the 220 US Dollars is still subject to change as each video differs. The video in the example by Doc Adam is educational and mostly watched by people in the Philippines.
As mentioned earlier, Youtube base the content creator’s salary on their audience. The 12,500 PH Pesos base is only for Filipinos looking to break through the algorithm in the Philippines.
It is also worth noting that if the monetized million-view video only gets 12,500 PH Pesos, imagine how low demonetized videos earn.
In the same video by Doc Adam, he also shows his demonetized million-view video to only earn around 25 US Dollars or 1,500 PH Pesos. This is incredibly alarming as people take time to film, edit, post, and market the videos yet only earn 1,500 PH Pesos for at least a million views.
This would make sense as most people in the country only do this part-time and have a business on the side while they make videos.
How to Make More Money with Youtube?
Because of the low salary based on AdSense alone, most content creators make more money by selling their own merchandise. It has become a trend on the platform that each content creator has their own merchandise brand.
Big Youtubers often sell shirts and the like. We can take local YouTuber CONG TV for example. He sells shirts with his catchphrase (“Power!”) and his friend group’s name “Team Payaman ” printed on it. Another is Pewdiepie himself who sells shirts, hoodies, and even mugs with his iconic Youtube icon that everyone knows about.
Content Creators with niches like Emma Chamberlain and Super Carlin Brothers sell coffee as their merchandise. Emma Chamberlain is often associated with coffee because of her love for it. This would make sense why she would choose to sell coffee.
Carlin Brothers, on the other hand, marketed their coffee with association to their most popular videos namely with the Harry Potter series.
Another way content creators can earn money with Youtube is by getting sponsors. Some of the commonly known sponsors are Audible, Honey, Dollar Shave Club, and NordVPN. You would know that a Youtuber is getting known when one of these brands appears on the video.
In an article by Investopedia, they also called this strategy “influencer marketing” as brands would pay Youtube influencers to use and create content with their product or service. The content creators would in turn get paid. Brands often partner with influencers that match their audience. For instance,
Content Creators can also utilize Youtube’s Channel Memberships. This feature is similar to Patreon, in which people who would like more content from a certain content creator would have to pay to see it. Prices and benefits would differ per content creator.
An example of a content creator who uses Channel Memberships is ReignBot, a true crime and horror content creator on the platform.
Their Channel Membership is worth 129 PHP per month and has a total of three (3) benefits:
(a) Loyalty badges next to the subscriber’s Youtube name that shows up when they comment on the video and during lives;
(b) Monthly review and round-up where subscribers of the membership are entitled to a monthly discussion of videos posted that month and a question-and-answer with ReignBot; and;
(c) ReignBot will prioritize subscribers to the membership when replying to comments. As ReignBot uploads just twice a month, these extras will surely benefit those who want more content while giving ReignBot more ways of income than just AdSense from her videos.
Aside from Youtube’s Channel Memberships, there are also Super Chat & Super Stickers, which are essential to content creators who use Youtube as a streaming platform. These are part of Youtube’s Partner Program. Viewers who avail of these allow their comments to be highlighted and be easier to see during Livestream on the platform.
Lastly, content creators get a portion of a Youtube Premium subscription fee whenever one watches their content. Youtube currently has a subscription fee that allows viewers to further explore the platform by removing ads and allowing videos to play in the background.
This is somehow essential for viewers who do most of their work on their phones and would need to maximize the gadget for efficient use.
In conclusion, Youtube content creators, especially ones whose audience is mainly from third-world countries like the Philippines, earn less for making content on the platform.
As mentioned, a million views would only equate to 12,500 PHP which is lower than what the general public would expect. Because of the low salary, content creators try to look for more ways for their income.
Some of these ways would be to sell merchandise, get sponsors, utilize Youtube’s Partner Program, and use Channel Memberships and the Supers set (Super Chat & Super Stickers).