July 27, 2021
It looks like almost all the major social networks started to follow the YouTube strategy and pay creators for their content. YouTube started to practice monetization for popular bloggers' videos just after 2006 when the company was bought by Google.
Now YouTube is a gold standard for content makers.
At this stage of the industry's development, YouTube is the gold standard for creators. The video monetization procedure is adjusted by the service from time to time, but the basic principle remains the same - the more views you get, the more money you can make. Slightly more than half of the creator’s income will be taken by the service, and the rest is the blogger’s earnings.
The average CPM in the US is between $6-8 USD. YouTube will also take 45% of the ad revenue, meaning that you take home 55% of this total.
“Highest YouTube CPM Countries List 2021” has Germany on the top.
YouTube reported $19.77 billion in earnings from advertising in 2020.
The sums creators earn are certainly smaller, but they are also impressive.
In2020, YouTube’s highest earner, according to Forbes, was nine-year-old Ryan Kaji, who made $29.5 million — up from $26 million in 2019. Gaining fame through unboxing and reviewing toys, Kaji surged to the top of YouTube’s charts after publishing a 2015 video in which he reviews more than 100 toys, and he’s remained there ever since.
In a 2021 letter, CEO Susan Wojcicki wrote that YouTube paid out $30 billion in three years to creators;
On its press page, YouTube says that there are now 40% more YouTube channels earning six figures per year in 2020 than in 2019, and 50% more earning five figures.
Just a few years ago, the situation was not that fruitful for creators. In 2018, Washingtonpost criticized YouTube for bloggers' meager salaries.
Reaching the top 3.5 percent of YouTube’s most-viewed channels — which means at least 1 million video views a month — is worth only about $12,000 to $16,000 a year in advertising revenue, according to Mathias Bartl, a professor at Offenburg University of Applied Sciences in Germany whose study is one of the first to examine YouTube data for clues about how it works for creators.
After 2-3 years, it became clear that creators should be paid more for the growth of high-quality content. And other services follow the path of YouTube.
“We want to build the best platforms for millions of creators to make a living, so we're creating new programs to invest over $1 billion to reward creators for the great content they create on Facebook and Instagram through 2022. Investing in creators isn't new for us, but I'm excited to expand this work overtime. More details soon”, – Mark Zuckerberg wrote on Facebook just a few days ago.
In late November Snapchat pledged to pay out $1 million a day to creators through its short-form video feature Spotlight, meaning it’s already awarded around $170 million. YouTube’s payout, in contrast, would come to less than 20% of Snap’s daily pledge, or $167,000 per day.
The short-video app in August unveiled a $200 million-plus fund that will pay out through 2023.
But the service hasn't yet officially announced how much influencers can make on their content.
Influencers who use TikTok’s recently launched Creator Fund have reported that the platform pays them between 2 and 4 cents per thousand views.
It seems that so far, the only platform that is not ready to pay creators is Instagram. The main principle of the service is that influencers should support themselves through sponsored publications. CNBC reporters estimate that you need a minimum of 5,000 Instagram followers and 308 sponsored posts a year to generate $ 100,000.
It happens that influencers cheat (absolutely meaningly) to increase the value of publications. A recent HBO documentary showed how everyday people manipulate Instagram and other platforms to become famous online influencers.
At the same time, the Instagram policy may also change one day, especially given the latest statements by the head of the company. In early July, Instagram's head Adam Mosseri announced that the service was becoming a video and entertainment platform. “It's no more a photo-sharing app”, - says the company chief.