How many views do you need to get money from YouTube? How to calculate YouTube views? How to calculate YouTube money?,… are all questions that any Youtuber is interested in on their MMO journey. In this article, Ecomobi will answer in detail about the YouTube money calculation formula with specific examples.
Overview of YouTube Monetization
How does YouTube pay?
YouTube’s revenue model is based on an advertising revenue-sharing model. Advertisers pay to show ads on videos, and YouTube then shares a portion of that revenue with content creators. The ratio is 55% for creators and 45% for YouTube.
For example, if an advertiser spends 1,000 USD to advertise on your channel, you can immediately earn 550 USD. You will earn both “impressions”, which are the number of views the ad receives, and “click-throughs”, which are when someone clicks on the ad to get more information.
When looking to make money on YouTube, remember that every video has the potential to make you money, even if one video may only make $1/day. But imagine if you had 10 videos that met the same standards, or 100 videos. As you build your content library, you have the potential to earn exponentially more over time.
Conditions to enable YouTube monetization
To enable monetization from YouTube videos, first of all, your account needs to join the YouTube Partner Program and meet the conditions for monetization on YouTube. Specifically as follows:
- 1,000 channel subscribers.
- 4,000 public watch hours in the last 12 months or 10 million public views for Shorts in the last 90 days.
- Comply with YouTube policies.
- Connect a Google AdSense account to receive payments.
However, recently, YouTube has updated the latest YouTube monetization policy to allow content creators to join the YouTube Partner Program sooner and more easily. The new conditions are:
- 500 subscribers
- 3 public video uploads in the last 90 days
- 3,000 valid public watch hours in the last 356 days or 3 million public Shorts video views in the last 90 days.
Note: This new requirement does not unlock Ad Revenue Sharing, so creators still need to meet the above threshold to unlock full YouTube monetization features.
Revenue sources on YouTube
Ad revenue
Advertising is your primary source of income. When video viewers are exposed to ads, you earn money through the following metrics:
- CPM (Cost Per Mille): This method of calculating YouTube money means the amount of money the advertiser pays for every 1,000 times the ad is displayed. For example: if CPM in Vietnam ranges from 0.3 to 0.5 USD/1,000 views and your video has 10,000 ad impressions, the income will be: (10,000/1,000) × 0.5 USD = 5 USD.
- CPC (Cost Per Click): The amount of money received when viewers click on the ad. For example: If the CPC is 0.2 USD, and there are 100 ad clicks, the income is: 100 × 0.2 USD = 20 USD.
- CPV (Cost Per View): Another form of Affiliate Marketing payment in which the amount received is for each ad view. This type is popular in short video ads.
Revenue from YouTube shorts
Starting in 2023, YouTube will share 45% of ad revenue from Shorts with creators, with the rest going to pay for music royalties.
For example, if you create a Short with 1 million views, at a CPM of $1, your estimated earnings are: (1,000,000 × 45%) / 1,000 × $1 = $450.
Other sources of revenue
- Channel Memberships: Viewers pay a monthly fee to get special perks.
- Super Chat and Super Stickers: Viewers pay to send featured messages during livestreams.
- YouTube Shopping Affiliate: allows you to embed product links and do affiliate marketing from your videos.
- Brand Sponsorships: Brands pay you to promote their products/services.
>>> Read More: Comparing Making Money Through YouTube and TikTok: Which Platform Is Better?
How to calculate YouTube money for creators
Basic formula
YouTube Revenue = (Total Ad Impressions x CPM) + (Views x CPC) + (Views x CPV)
Where:
- Total Ad Impressions (Ads Impressions: the number of times an ad appears to viewers on YouTube. You can find this information on YouTube Analytics or through an advertising agency.
- CPM (Cost Per Mille): the amount an advertiser pays for every 1,000 ad impressions.
- Views: The number of times viewers watch your video. This metric is very important because it is directly related to the cost per click (CPC) and the cost per video view (CPV)
- CPC (Cost Per Click): the amount an advertiser pays each time someone clicks on their ad.
- CPV: The amount an advertiser pays for each video ad view
For example:
| Index | Value |
| Number of video views | 100.000 |
| Total ad impressions | 50.000 |
| Ad clicks | 1.000 |
| CPM | 0,3 USD |
| CPC | 0,1 USD |
Revenue = 115 USD
- From CPM: (50,000/1,000) × 0.3 USD = 15 USD.
- From CPC: 1,000 × 0.1 USD = 100 USD.
Distinguish between ad impressions and views
A common misconception is that YouTube pays creators based on video views. In reality, you only get paid when viewers watch ads on your videos.
- Video views: The number of times your video was viewed.
- Ad views: The number of times your video ad was viewed when viewers watched the ad for more than 30 seconds.
For example below, 6751 views mean video views ≠ ad views.
How to calculate YouTube ad views
YouTubers don’t get paid if viewers click Skip Ad. Typically, advertisers pay YouTube based on engagement (viewers watching an ad for at least 30 seconds). If viewers skip before that time, YouTube doesn’t charge the advertiser or pay the YouTuber. If they click on the ad, the YouTuber gets paid.
There are now 6-second non-skippable bumper ads, which are charged on a CPM basis, i.e. per 1,000 views. They are charged if the viewer watches for at least 2 seconds.
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How much does YouTube pay per video view?
Each country often has a different way of calculating YouTube money, depending on:
- Cost of advertising in that country: Costs are higher if the target audience is in developed countries like the US, Canada, or Australia.
- Advertising industry/service: Industries like finance, technology, and health tend to cost more than fashion or entertainment because they are more profitable.
- Keywords and competitors: Popular or highly competitive keywords will increase CPC/CPM costs.
- CPM rates typically range from $0.30 – $0.50. This means that for every 1,000 views, you can earn around $7,500 – $12,500 depending on the quality of the content and the target audience.
- RPM (Revenue per Mille): RPM is lower than CPM because YouTube retains around 45% of the ad revenue. Typically, RPM in Vietnam is only around $0.10 – $0.30 per 1,000 views.
How to increase YouTube RPM?
To achieve higher RPM (Revenue Per Thousand Views) on YouTube, you need to create content strategically and understand your audience demographics.
Prefer regular videos over short videos longer than 8 minutes
While short videos are becoming one of the most popular formats on YouTube, they tend to have lower RPMs than regular videos. So focusing on creating regular, standard-length videos will result in higher CPMs as these formats typically attract more lucrative ad options and better engagement metrics.
Additionally, longer videos (8 minutes or longer) have the added advantage of being eligible for mid-roll ads. This means that ads can be placed not only before and after, but also during the middle of the video, adding revenue opportunities.
Target countries with high CPM
Your RPM can vary greatly depending on where your target audience (viewers) are located. Some countries have higher CPMs meaning you’ll earn more.
Create content in high-paying segments
Some fields like technology, finance, digital marketing, etc. tend to have higher CPMs. If these fields match your expertise and interests, focusing your content here can be profitable.
Frequently Asked Questions
- How much can you earn on YouTube? There is no exact figure for YouTube earnings or ad views. YouTube earnings depend on a variety of factors, including views, audience country, content type, CPC/CPM costs, etc.
- How much money can you make from 1,000 YouTube views in Vietnam? On average, you can earn from 0.2 USD – 0.5 USD (equivalent to 4,600 – 11,500 VND)
- How much money can you make from 1,000,000 YouTube views in Vietnam? With 1 million ad views, you will earn about 200 – 500 USD (4.6 million – 11.5 million VND).
- How much money do 1 million YouTube subscribers make? According to Descript, a YouTuber with 1 million subscribers can earn from 14,600 – 54,600 USD/month, equivalent to about 350 million – 1.31 billion VND/month (at an exchange rate of 24,000 VND/USD).
- Do YouTubers still get paid for skipping ads? The answer is No! If viewers skip an ad, the creator will not receive money from that ad. Revenue is only counted when viewers watch the ad for at least 30 seconds or click on the ad!
With the above sharing about how to calculate Youtube money, you will understand the formula and from there determine the appropriate channel development strategy to generate maximum revenue from Youtube.
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