YouTuber’s and How They Make a Living
Today, people have found a way to make their living solely off of being famous on social media sites such as Instagram or YouTube. Many “celebrities” on Youtube have salaries that rival that of actual celebrities – the highest being Felix Kjellberg with an annual salary of $12 million. Other than product endorsements and getting paid for attending events, much of the salary that YouTuber’s make is based on ads.
Similar to what we discussed about Google and how it makes its money, YouTube, since it has come to be owned by Google, has a system that is not so different. YouTube has both Cost Per Click ads, which is the same strategy as Google, and Cost Per View ads, which is specific to YouTube being a video streaming site. With the Cost Per Click ads, YouTube and the YouTuber only make money when someone clicks on the ad, which it charges the advertiser for and then splits the profit with the maker of the video. Cost Per View ads are only beneficial when someone watches the ad for at least 30 seconds or half of the ad (whichever comes first), which the advertiser then pays for.
Advertisers now will pay big money to get their ad in from of specific and targeted audiences. Similar to Google’s form of running an advertisement, they want to hone in on specific targets, which is easy to do with a YouTuber’s personality and the content of their videos. While Cost Per Click and Cost Per View ads only average about $0.04 each, many YouTubers have many subscribers and have videos that get millions of views, making the money quickly add up. Also, it is easy to get the ads to be specific. For example, YouTube beauty guru’s have a very specific audience, so the ads are very easily targeted and often make a lot of money. This is applicable to many different YouTubers, from gaming videos, to cat lovers, to home-cooking videos, making money becomes easier with the more specific the demographic.
This concept that seems so simple has become the key source of income for so many people in our society, we can only wonder where this system may spread to next.
http://videopower.org/how-many-views-to-make-money-on-youtube/
https://searchenginewatch.com/sew/opinion/2169740/youtube-advertising-options-budgets-sizes