YouTube Ad Revenue: What Really Matters — Full Breakdown & Transcript

[00:01] millions of dollars just from ad Revenue so I'm going to show you how these niches make so much money insights from a Creator earning a $30 plus RPM on his gaming channel and how to replicate his success on your channel and I'm also

[00:15] going to reveal the one mistake that most creators make that absolutely kills their ad Revenue but first what makes a niche profitable there's a common stigma on YouTube that if you choose a high paying Niche you'll earn a lot of AD

[00:28] Revenue however this isn't over simplification of a rather complex process for example everybody thinks that the finance Niche yields a ton of AD Revenue because creators like Joshua Mayo bring in $21 RPMs on the flip side

[00:41] most creators see the gaming niche as very unprofitable due to low RPMs and yet I know multiple gaming creators who are earning $20 plus RPMs on most or all of their videos so what does make a niche profitable well it really comes

[00:55] down to four things the first being your audience for those who don't know here's company will bid to have their advertisement shown on a video in multiples of 1,000 times otherwise known as the cost per Millennia or CPM for

[01:10] example with a brand paying $20 CPM for 10,000 Impressions on their ad YouTube will earn $200 monetized creators then get a roughly 30 to 50% split of this called RPM the total value of the CPM though will depend on the buying power

[01:26] of your viewers for example people interested in Financial Services typically have more money and buying power than those interested in something like video games and this is why on average the finance Niche has higher

[01:38] cpms and RPMs than the gaming Niche the location of the viewers will also impact the price of the CPM as viewers in wealthier regions like the US Canada and the UK will have more money than those in other countries other factors like

[01:52] gender hobbies and occupation will also contribute to the buying power and overall price of the CPM as women tend to purchase more products than men and a 16-year-old high school student isn't going to have as much money as a

[02:05] 40-year-old real estate agent but if this is how it works then how is my friend baked able to receive $30 plus RPMs on content that's aimed at 5-year-olds hi my name is James and I've made over $1 million in the last year on

[02:18] YouTube what's your secret to Crazy ad Revenue in a niche like gaming that's infamously known to be unprofitable yes so the $1 RPM misconception about gaming is a little bit skewed to the fact of people who

[02:31] make uh Channels with like no audio or like 4minute videos so what we do is we make channels that run sort of 20 to 20 minute videos to 5 hour long videos super long videos because they uh they

[02:44] optimize the video length for ABD optimized TV viewership and of course we and doing those free things uh gets us high RPMs anywhere from 10 to 40 here's where content format becomes key certain niches like documentaries Sports and

[02:59] apparently james' niche of Minecraft roleplay get a lot of watch time on TVs which I do occasionally you'll know that you get way more ads than on PC or phone

[03:11] be less skippable so tv ads actually have usually a higher RPM than phone ads phone ads are the worst and then it goes up to PC and stuff additionally James revealed that TV's viewers also watch way longer so my average TV viewer

[03:25] my average phone viewer only watches about 20 minutes so you get better ads and way more ads which means that in addition to or instead of just targeting people that watch YouTube on a TV you can always just make longer videos to

[03:39] increase your ad Revenue many of james' videos are over 30 minutes long and in many cases some are even longer than a few hours this means that compared to an 8-minute video he's able to place like nine times more ads which is earning him

[03:52] crazy ad revenue and coupled with the fact that he targets TV viewers who tend to watch YouTube longer his watch time is all so crazy with that said though making 30-minute videos isn't exactly a walk in the park because I mean imagine

[04:05] how long it takes you to make a 5-minute video and multiply that by six yeah the good news however is that you can speed up this process with the power of resets which is why I'm giving away all of my editing and sound effect presets for

[04:19] editing and sound effect presets for free at Nate wealth.com slems this week in addition to a free article that's coming out on Thursday I've also created a short editing tutorial to create this curtain effect that you see on screen so

[04:31] head to Nate wealth.com or click the link in the description below to have inbox and for those of you who want even more presets I have a secret weapon for you motion VFX back when I decided to

[04:44] take YouTube seriously I realized that the key to my success wasn't just how hard I worked but also how smart I worked editing was my biggest bottleneck and I know for a fact that most of my problems would have been solved had I

[04:56] known about motion vew effects which has pre-made plugins timelines and templates best part is that most of these templates are based on real life creators like MKBHD which means that you're able to leverage the 10 plus

[05:09] years of experience many of these YouTubers have and grow your channel invest in yourselves and take your content to the next level like a pro then you need to invest in motion VFX as soon as possible in fact there isn't a

[05:23] running a special sale for the month of November that includes an intro price for their Final Cut Academy 30% off of all products and even 50% off for individual products every single week so click my link in the description below

[05:37] and use the code 30 black to save yourself a ton of money and once you have your content at an elite level of quality you're going to want to assess your nich's ceilings to really determine the profitability of a niche we need to

[05:50] look Beyond Simple ad revenue and RPMs because although we could make videos a billionaire CEOs we're not going to get any views why simple there are only 3,194 billionaires in the world and yes I looked that up and most of them aren't

[06:05] spending their time watching YouTube and although that's a bit extreme the point I'm making is that we need to be aware of our view and idea ceiling The View ceiling is simply a measurement of the potential audience of video in a certain

[06:17] Niche has for example my Niche YouTube education has a much smaller view ceiling than something like Finance as there are way more people trying to make learn about YouTube ad revenue is directly to your views so it doesn't do

[06:31] you a lot of good if you have a super high RPM but average 1,000 views per enough audience for your Niche on YouTube the other ceiling to consider is the idea ceiling which is just a measurement of the number of video

[06:44] Concepts you can realistically make that will get views in your Niche to channel in the sports Niche is going to have a much higher idea seiling than channels have basically unlimited things

[06:58] played in news emerges daily whereas there are very limited viral ideas to make videos about regarding growing on YouTube you can only really remake and repackage the same video idea so many times and I'm not saying a niche is

[07:11] unprofitable if it has a low view or idea ceiling but just keep both in mind when figuring that out picture this you find a super profitable Niche with unlimited potential to get views and endless video ideas to go along with it

[07:25] you start publishing videos every week and soon enough begin pulling in upwards of 500,000 and even a million views per upload bringing in a ton of money in the process everything's great until one day boom copyright strike this is exactly

[07:39] what happened to Jerome Bosch the creator of a YouTube channel in the sports Niche called offside I don't know him personally but I followed his battle with YouTube's copyright takedown system on Twitter but from speaking to people

[07:52] that do know him the issue was using game footage that he didn't own which unfortunately is pretty much necessary for Soccer Channel eventually the copyright strikes piled up on Jerome's Channel and it became completely

[08:04] demonetized with an option for him to reapply to the partner program 90 days after the fact regardless of how profitable the niche might have been and how many views his videos were getting he now earns 0 of AD Revenue so consider

[08:17] copyright as well when trying to determine the profitability of a niche and I'll also have a longer video about copyright in the future so make sure you stay tuned for that until then thanks for watching and make sure to follow my

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