What is YouTube Monetization & How does it work?

What is YouTube monetization? How was it working in 2023? Is that your question? Then, you’ll get every answer in this post. Welcome to the party.

For those thinking 9 to 6, the routine job is tedious and frustrating; you might consider an alternative income. If so, it seems like you came to the right place. Yes, many passive income sources are available in this 21st century. Probably, YouTube is the best one I have ever seen in the last seven years.

Firstly, let me clarify the difference between active and passive income.

Active income is earning money by doing your job regularly. For instance, you won’t get paid if you haven’t done it. (9 – 6 jobs).

Passive income is earning money by doing your job at once. And then, you can make money, even in your sleep. Sound’s Good! Yes, it is possible via YouTube.

So, in this post, I will guide you to the definition of YouTube monetization, how it works, how to achieve it, and how much you can earn from it.

Generally, one can earn money on YouTube in different ways: Google AdSense, Affiliate Marketing, Direct Sponsorship, and so on. But for the sake of this tutorial, we would like to concentrate only on monetization by YouTube AdSense.

What is YouTube Monetization?

YouTube Monetization is earning money from YouTube channels by uploading valuable videos to the audiences or viewers. Generally, Monetization is called Earning Money. Example: Earning money from some business.

Ok, how it really works? Take a look at the below image for a better understanding.

Let me explain to you clearly,

1. Firstly, the advertiser pays the amount to YouTube to display their ads.
2. Secondly, YouTube will start to display that ad on videos (based on different factors and requirements).
3. Finally, once the channel reaches monetization requirements, YouTube takes a certain amount as a commission from what the advertiser pays and distributes the remaining amount to the channel owners.

Moreover, this process will be completely controlled and monitored by YouTube Ads.

For your easy understanding, look at the below example.

Consider, I have some X company and producing some car accessories products. Now, I want to advertise them. So, I paid and created an Ad to display on YouTube videos. Hence, in this situation, I’m the advertiser.

On the other hand, consider you own a YouTube channel regarding car reviews with a decent amount of audience. So, YouTube will start to display my X company product ads on your videos. By this chance, the audience will click the ad and take some action.

Therefore, you can start making money from it based on ads performance. In simple, this is how YouTube Monetization works.

If you are a complete beginner to YouTube, then don’t get panic. It is easy as you think. Once you are ready to make good content videos, then the money will automatically come into your pocket. All you need to do is build your audience.

Let’s see how the ads work on videos.

YouTube Monetization: How does it work?

YouTube will start to display ads on the videos based on two types. They are,

1. Contextual ads,
2. Viewer-related ads.

Contextual ads

• Entirely the ads are relevant to the channel topic.

For example, consider your channel niche is about smartphone reviews, then the display ads are related to mobiles.

Note: I always recommend my readers stick with a particular channel niche. It helps you to become a better ranking on the search engine.

Viewer-related ads

• The viewer-engaging-related ads will start displaying on your videos.

For example, I always search for food-related stuff on search engines. If I came across your smartphone niche channel, the food-related ads automatically started displaying on your videos. These are called viewer-related ads.

Note: You need to check this option whether enabled or disabled in your settings. Go to YouTube Studio > settings > Channel > Advanced Settings tab.

Make sure that the “Disable interest-based ads” option is not ticked. If it’s ticked, the user-related ads won’t appear. Significantly your revenue will decrease.

From my point of view, “viewer-related” ads get more revenue than “contextual” ads.

These are the two kinds of ads basics, so once you enable your monetization, the ads will start displaying in the manner of these two ways.

How to Get Monetized on YouTube?

I hope you understand the above things. The next essential step is to monetize the channel. For that, first of all, you need to join the YouTuber partner program.

Before that, you need to meet the monetization requirements to join. It requires,

• Channel must have 1000 subscribers.
• At least 4000 watch hours in the last 12 months.

(or)

• Channel must have 1000 subscribers.
• 10M public shorts views in the last 90 days.

Mandatory: Must obey YouTube community guidelines and policies.

Once you reach the above thresholds, you can enable monetization. After that, YouTube will review your channel and approve your request.

Read more on:

• Why YouTube Demonetized My Channel: What To Do Now?

Different types of YouTube ads

I don’t want to bore you. Therefore, instead of textual representation, kindly watch the below video to learn more about the types of ads displayed in the videos. (Start watching from 2:22)

How can I Earn from YouTube Monetization?

Well, the mind-hunting question is here…

To make money from YouTube channels, you have to focus on initially making the audience.

Meanwhile, many beginner’s level YouTuber’s concentrate more on making money instead of making good content. Once the audience welcomes the video, it will start rolling out to earn revenue.

Ok, let’s see what you need to do to make SEO-friendly videos. Eventually, it will bring you to make more from YouTube.

The Topic of the YouTube channel

The topic of your channel determines channel growth. The unique niche will stand at the top of the video ranking. As I said before, don’t try to make random videos from different topics. Choose the niche which you’re passionate about it.

Make Quality Content Videos

After choosing your niche, it’s time to concentrate a little more and produce the best videos ever. So, take down the paper and pen, then write all the things that come to your mind. This is your video script.

Analyze your competitor’s video content of what they are producing, and check what else that video is missing. Also, find their comment box and investigate what people were asking about that topic.

Finally, with all these contents, add on your ideology and make a better video. To be serious, not only do high-cost cameras and software bring you the video quality, but the content also.

Keywords

Making excellent content will satisfy you and give you more confidence to you. But how do you approach it to reach the audience?

That’s why keywords come here. Proper, high search volume and low competition keywords bring you more organic traffic.

I clear to you that only organic traffic will get you more views. So, try adding more meaningful and related keywords to your videos. Also, choose the keywords with high search volume with the help of the keyword finder tool.

Learn more,

• How I increased my traffic by 50K views in just 30-days: A practical guide

Ok, how much can you earn from YouTube?

The answer is infinity!

This means there is no limit to making a certain amount from YouTube. Some people are making millions per month from YouTube. So, I request you choose a profitable niche, create great content videos, and start earning from it.

Bonus Tip

Make Lengthy videos

Making lengthy videos helps to put more ads in the entire video. Hence, it increases revenue. But it’s not mean that you can add non-valuable content to the videos. It must be full content and satisfy all the needs asked by audiences.

FAQ’s

Wrap

Expecting money from day one of your video posted on YouTube is not possible. However, it takes some time, but the output is sure if you’re consistent. So, don’t try to expect from day one. Instead of it, make some awesome videos and wait for the reach.

I hope you understand everything about YouTube monetization. Feel free to ask your doubts in the comment box if you have any. Share this post with your friends.

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