Is YouTube Ad Revenue Worth Creating a Channel?

When you consider the popularity of Youtube, it comes as no surprise to see so many Youtube influencers and even businesses making a substantial profit on the platform. 

But how are they making money? Is Youtube ad revenue enough?

Besides selling their own products and sponsorships, a decent chunk of a Youtuber’s income comes from ad revenue. However, unless you suddenly go viral, it’s not the quick buck many believe it to be. 

On the contrary, many, many people have attempted to make a living off of Youtube ad revenue and failed. Where they failed, however, is by giving up too quickly. 

Keep reading to see if Youtube ad revenue is worth creating a channel and other ways to monetize your videos. 

Making Youtube Money

Having your own youtube channel can be an exciting hobby and a creative outlet. However, it will continue to be nothing more than a hobby until you look at Youtube for business opportunities. 

You’ll have several ways to monetize your videos with varying income levels throughout your Youtube journey. The first is ad revenue. 

1. Youtube Ad Revenue

As stated earlier, a vast majority of high-earning Youtubers earn a decent chunk of their income from ad revenue. This type of monetization will vary from channel to channel, depending on your location, your viewer’s locations, and the number of views. 

The ad revenue comes from the advertiser’s Youtube advertising cost, otherwise known as youtube cpm. A vast majority of these ads, as you might already know if you spend some time on Youtube, are video action campaigns. 

The reason advertisers prefer Youtube action campaigns is that they’re simple and a cost-effective method of driving conversions one and off the portal in a single campaign. 

It’s important to note Youtube and Google AdSense change their payment terms frequently, and you won’t be able to cash out any earnings until you reach a minimum of $100. Additionally, you or a guardian must be at least 18 years old, have 4,000 hours of watch time within the past 12 months on your channel and have at least 1,000 subscribers. 

This is all before you can earn a penny from ad revenue. 

2. Sponsorship

Until then, you can reach out to brands for potential sponsorships. Many brands have realized that they can get more bang for their buck by working with micro-influencers with a niche audience. 

Sponsorship opportunities will vary based on your channel and the brands you will work with. You may get cash compensation for promoting their products or get free products to use instead. 

Although many brands work with micro-influencers, the general rule of thumb is that larger quality (not fake or bot) audiences will command a more lucrative partnership. 

3. Be an Affiliate or Sell Your Own Merch

Other ways of making money with a Youtube channel are becoming an affiliate and promoting other products or selling your own merchandise. Affiliate marketing is an easy income stream for Youtubers. Affiliate links allow Youtubers to earn a commission if someone from their audience clicks on the link and buys the product. 

You can see how those will a large following can benefit significantly from affiliate marketing. Additionally, you can also build a brand around your channel and sell merchandise to your audience. However, if you don’t have a devoted audience, it could be a wasted effort. 

Is YouTube Ad Revenue Enough to Justify Creating a Channel?

If your sole focus is to create a channel to generate an income from Youtube ad revenue, it may be just enough. However, you will need determination and patience before you can make life-changing money with ad revenue. 

Until then, focus on creating a brand around your channel and know that you can generate multiple income streams until you can retire on ad money!

If you find this post helpful, check out some of our other recent posts for more tips!