The most common question a beginner on YouTube will ask is what should be the minus number of views to earn from YouTube? And the answer you would get is when you have a million views; you will qualify to earn $5 as per thousand views. But the right question is how much engagement do we require to make money from YouTube? The reason of your income is not the views count you will be getting, rather would depend upon the engagement rate of the ad. The context of engagement is the number of clicks and watch time of ad should exceed 30 seconds at least.
Even if you increase YouTube views, it will not be enough to qualify for the Cost Per Click (CPC) or Cost per View (CPV) method that YouTube works on. To understand how YouTube ads vary the cost and pay depending on YouTube views, you should know about Cost Per Click (CPC) and Cost Per View (CPV). Here’s a brief explanation:
Cost Per Click
When the payment is calculated based on the number of clicks. For example, when a specific keyword has CPC of $3 and the ad gets clicked once, the CPC advertiser has to pay is $3. This model applies to text ads that pop-up at the bottom of the screen while the video is playing or it might appear in the banner format at the right corner of the channel.
Cost per View
This works exactly the same CPC but here the payment is evaluated as per the views of an ad. Now, ‘a view’ in the context of an advertiser means when a person watched an ad for at least 30 seconds or more. This differs from Cost per click as a viewer can click numerous times on an ad but that cost will not be charged from the advertiser. The payment is strictly restricted to pay for each view. CPV might differ with each ad; there is no fixed cost for a different range of ads.
The above methods are relevant in determining the cost and pay for different types the ads. The following are the YouTube Ads you should know:
True View Ads or Pre-roll ads
Those ads that appear before a video starts to play, basically, they look like a preview and one has the choice to skip it after five seconds. In some cases, some pre-roll ads are from a third party, which compels the audience to watch the ad for a fixed duration. But this case isn’t applicable on a majority of the ads.
These ads would be displayed in the search results of a keyword and have a visible boundary of a light yellow box.
Ads are visible at the right side of YouTube in the suggested videos column. Advertiser will pay based on the clicks of a particular link.
Non-skippable In-Stream Ads
Such ads are usually used in a YouTube channel, no-skippable ads are directly in the interest of the content creator and not YouTube. These ads are usually for a duration of 15 to 20 seconds and their cost is based on CPM (Cost Per Thousand), which varies between $3 to $7 on YouTube.
In-Video or Overlay Ads
Ads that appear above video control section are called ‘In-video/ Overlay ads’, the payment is dependent on the number of clicks on that link.
Please note that YouTube gets 40-43% of revenue from advertisers and the rest of the revenue amount goes to the content creators. Estimated revenue of YouTube Ads based on daily views range between $0.63 to $10 for 2500 views, $1.25 to $20 for 5000 views, $2 to $32 for 8000 views and so on. Revenue keeps on varying as per the number of views.