The simple answer: Very little. And that’s because the money YouTube makes from advertising (whether from companies like Facebook or Google, or direct to consumers with YouTube TV channels) is not what it would make if it were paid using its “subscription” model. If you watch more than one million times, for example, you’re probably in your second season of that reality show.
“The reason it’s difficult to compare earnings from Google AdSense in different regions is because of how AdSense is paid,” a Google spokesperson told me in an email.
It’s hard to make the comparison of AdSense to traditional TV, though. A recent report from the media research firm SNL Kagan says that the average cost of a 30-second TV ad is $60, but AdSense is $0.10 for 30 seconds. So it’s likely that AdSense’s revenue is much lower than traditional television.
Still, I found that $2.7 million in ad revenue sounds like a significant amount. But it’s a pittance when you think about YouTube’s revenue potential, which was $5 billion in the second quarter, so you could look at the number of views it gets as proof of its true potential.
So here’s how you go about calculating a YouTube revenue figure based on Google’s data:
Using the total number of views (not just for TV, which you could do instead), divide by the revenue received per view
Based on the number of times a video gets watched divided by those views (since people watch a lot of them by default) multiply by the revenue received per view
In other words, the revenue figure I use is based on the following:
The revenue we receive from AdSense (which is $2.7 million per month at YouTube) divided by the sum of views on YouTube ($2.7 million) divided by the income we receive (which is $5,000 from YouTube)
That gives me a per-view revenue figure of 4 cents to per-view for YouTube. Add in the $2.7 million that Google will have to pay AdSense, and the $5 million my calculations suggest is actually an estimate.
One thing I know, though, is this: The ad revenue we pay Google for our content is not being used for advertising.
(Update: Google has a good video that explains some of what this means, plus answers some more questions from me.)
On this weekend
see yourself while filming, learn how to shoot and edit video, shooting without a tripod, dslr video production, videography tutorial