YouTube is the most popular platform for content creators to share their videos with the world. With over 2 billion monthly active users, YouTube offers a vast audience to content creators. It’s no wonder many have turned to the platform as a source of income through ad revenue.
However, for viewers, ads are an unavoidable part of the YouTube experience. As ads play before, during, or after videos, viewers may wonder if they are helping content creators earn money by watching these ads, or if their decision to skip an ad affects the earnings of the YouTuber.
This article delves into the details of how YouTube ad revenue works and whether or not the YouTube channel gets paid if you skip an ad. We will also discuss the different types of YouTube ads to understand how they affect the content creator’s revenue.
Do Youtubers Get Paid if You Skip Ads?
The short answer to the question is: yes, YouTubers can still get paid if you skip ads. However, it’s not that simple. There are different types of ads on YouTube and different factors that affect how much money a YouTuber earns from ads.
The exact amount that a YouTuber earns from ads depends on several factors, including:
- The type of ad
- The length of the ad
- The quality of the ad
- The advertiser’s bid.
One of the most common types of ads on YouTube is cost-per-view (CPV) ads.
CPV ads are typically skippable ads, where the viewer can choose to skip the ad after 5 seconds. Advertisers only pay when a viewer watches a certain portion of the ad or clicks on it.
For example, an advertiser might set a CPV rate of $0.10, which means they will pay $0.10 every time a viewer watches at least 30 seconds of the ad, or clicks on the ad. If viewers skip ads before that point, the advertiser is not charged and the YouTuber makes no ad revenue.
Another type of ad on YouTube is called cost-per-impression (CPM) ads. CPM ads are typically non-skippable ads that play before or during a video. Advertisers pay based on the number of times the ad is displayed to viewers, regardless of whether or not they interact with the ad.
For example, an advertiser might set a CPM rate of $5, which means they will pay $5 for every 1,000 times the ad is displayed to viewers.
Now, let’s delve fully into the different types of YouTube ads.
Types of YouTube Ads
1. Skippable Video Ads
Skippable video ads are the most common ads on YouTube. These ads appear before, during, or after a video, and viewers have the option to skip the ad after watching for a few seconds.
Advertisers only pay if a viewer watches the entire ad or at least 30 seconds of it (whichever comes first). The length of skippable ads can range from a few seconds to several minutes, and they can either be in-display or in-stream ads.
2. Non-Skippable Video Ads
Non-skippable video ads are ads that viewers cannot skip, and they generally appear at the beginning of a video. Viewers are forced to watch the ad before they can watch the video.
Advertisers pay more for non-skippable ads because they are guaranteed to be seen. Non-skippable ads can be up to 20 seconds long, and they can be in-display or in-stream ads.
3. Bumper Ads
Bumper ads are a type of non-skippable ad that are shorter than other types of non-skippable ads. They are typically only six seconds long and appear before a video. Because they are so short, they can be less obtrusive than other types of non-skippable ads, but they also pay less.
4. Overlay Ads
Overlay ads are ads that appear as a banner at the bottom of a video. They are often semi-transparent and can be closed by the viewer. Overlay ads are only available for videos that are longer than 10 minutes and can be either image or text ads.
How do YouTubers Make Money in Ads?
We have mentioned that YouTubers gain commission from ads but we know you’re probably wondering, “How do Youtubers make money from ads?” “Is there a program they sign up for?” “How does one incorporate ads into their YouTube videos?”
Not to worry, we will explain all that here and in the next sections.
YouTubers make money from ads through the YouTube Partner Program (YPP). This program allows creators to monetize their content through ads.
To be accepted into the YouTube partner program, you must have over 1,000 subscribers and 4,000 hours of content watched in the last 12 months. Once you meet these criteria and have your Google Adsense account linked to your channel, you can monetize it.
Advertisers pay YouTube to show their ads to viewers. The revenue from these ads is then split between YouTube and the content creator, with YouTube keeping 45 percent of the money and giving the rest to the creator.
Ad revenue is calculated based on factors such as ad type, ad length, advertiser bid, and video content.
How Much Do YouTubers Make?
The amount that advertisers spend on digital ads increases every year. According to eMarketer, B2B digital ad spend in the US is projected to reach $18.47 billion in 2024, up from $5.46 billion in 2018. This means that there is a lot of potential for YouTubers to earn money from ads as more and more businesses shift their advertising budgets to digital platforms like YouTube.
Suppose a YouTuber has a video with 100,000 views and 50% of viewers watch an ad that is priced at a CPV rate of $0.10; the ad generated 50,000 views and yielded 50,000 x $0.10 = $5,000 in ad revenue.
However, YouTube takes a 45 percent cut of the ad revenue, which means that the YouTuber’s share is $5,000 x 0.55 = $2,750.
The average YouTubers earns approximately $0.018 per view. In an open letter addressing the company’s 2022 goals, YouTube’s CEO Susan Wojcicki revealed there’s been a 40 percent year-over-year increase in channels making more than $10,000 a year.
Do YouTubers Get Paid If You Have YouTube Premium?
YouTube Premium subscribers pay a monthly fee of $10 to access exclusive content and features, including ad-free viewing. As a result, when a Premium subscriber watches a video, the YouTube channel does not earn revenue from ads displayed during that video.
Instead, YouTube uses a portion of the subscriber’s monthly fee to pay creators based on how much time Premium subscribers spend watching their videos. The exact formula for calculating this revenue is not publicly disclosed, but it’s generally believed to be based on the creator’s share of watch time from Premium subscribers across all of their videos.
Content creators can expect to earn less revenue from Premium subscribers compared to non-premium viewers, as Premium subscribers pay a fixed monthly fee that is shared across all the content they watch on the platform.
However, the revenue generated from Premium subscribers can still provide a significant source of income for content creators, especially for those with large and engaged audiences.
Other Ways YouTubers Earn Money
Ad revenue is an essential part of many YouTubers’ income, but it’s not the only way they make money. Some YouTubers also earn money through sponsorships, merchandise sales, and other revenue streams.
So, while skipping an ad may not have a major impact on some popular YouTubers’ earnings, it doesn’t hurt to watch their ads from time to time. And if you want to help your budding content creators, don’t skip the ads on their videos. It would encourage them to keep producing great content.