Add Revenue

So it recently occurred to me that general public has literally no idea how much money does a million view youtube video makes, and that's the reason why I've decided to dig a bit deeper and find out.

Honestly i have been living in a deception myself as i assumed there should have been some common ground when calculating the profit, oh boy I couldn't have been more wrong.

How much money you think one earns via adds?

The most complicated part is the fact that different Youtube videos that have same amount of views can make you different revenue incomes. For instance, one video could have been seen by 2 million people and it'll bring you let's say 500 dollars, but on the other hand video that has been watched by 1 million viewers could bring you 2000 dollars.. How come?

Although there are multiple reasons for it i will try to brake most important ones.

First of all it depends on your viewer base and where are your viewers from. For instance if majority of your audience is coming from third world countries you won't earn as much as if majority came from the US.

I know, one could say it's not fair practice but objectively there is a higher chance for advertisers to make more money or gain bigger momentum if most viewers come from more developed states.

So basically it depends on the CPM.

CPM is the most common method for pricing web ads. Advertisers frequently measure the success of a CPM campaign by its click-through rate, which is the percentage of people who saw your ad and clicked on it. For example, an advertisement that receives two clicks for every 100 impressions has a 2% CTR. You cannot measure an advertisement's success by CTR alone because an ad that a reader views but does not click may still have an impact.

_Source

So CPM depends on what country are your viewers from and based on that it's calculated how much 1000 views are worth of money.

For instance, if majority of your viewers come from let's say Pakistan you'll be earning around 1 dollar per 1000 views, which is quite a small amount. Taking into equation that Youtube takes a cut at around 50%, you end up earning 500 dollars - Under assumption your video gets 1 million views, of course.

On the other hand, states such as US has a lot higher CPM. CPM for viewers from US is around 4 dollars, which basically means that if your audience is from the US, one will earn around 4k dollars for a video that has million views. Again, Youtube takes a cut of 50% and content creator gains approximately 2K dollars.

There's more.

Again, I will not try to cover every possible reason that might affect the CPM because it would take me around 4 days to write it down, haha.

That being said, there are few more reason i will mention that have an impact on the revenue content creator receives. One of those reasons is most definitely the topic one decided to process. First of all, it has to match their terms of services and has to be family friendly. I'm not saying other videos aren't making any money, but the more resemblance with such a content, the better.

Of course, the age of those watching you has an impact as well. Not sure about specific influence on the price or CPM itself but it most definitely has one...

Based on this one, CPM can reach as high as 20 dollars per 1000 views. Like whaaaat? hahaaha

I guess to reach that lvl people have to be either from the US, Australia, Germany etc, all of those watching should be older than let's say 25 years and the video has to be long enough in order for adds to be placed during video. I mean, that is the only logical reason i can come up to.

Hope you enjoyed and got a better perspective on how it really works. Cheers.