In recent years, social media corporations have poured significant resources and money into online producers. YouTube wants everyone to know that it throws the most. On Monday, Google’s media division disclosed that it splits advertising sales with over 2 million video producers. In the last three years, YouTube boasts $30 billion in payments in ad revenue, merchandising, and other service features to artists. The corporation claims it paved the way for such expansion by making the site more advertiser-friendly.
“Our responsibility as a global platform has created this place that works,” Neal Mohan, YouTube’s chief product officer, said in an interview.
In 2007, YouTube boasts $30 billion and began dividing ad sales with producers, resulting in a complex system with few controlling regulations. Advertisers fled YouTube because of offensive videos, which blew up.
The service dramatically reduced the number of paid channels at the start of 2018, focusing on those that met viewership goals and guidelines. Now, even if it isn’t back to pre-2018 levels, that number is rising again. The number of new channels in YouTube’s ad program is expected to double in 2020, according to the company.
“Huge, huge chunk” of money
Major competitors like as Facebook Inc., TikTok, and Spotify Technology SA have all sought to entice producers away from YouTube with tools and payments, but none have succeeded so yet. To jump-start growth, Facebook has even promised not to accept fees from creators until 2023. The majority of video ad sales are made on YouTube, which accounts for 45 percent of all purchases. There are no plans to change that, according to Mohan.
“When I talk to creators, it’s always about growing the overall pie,” Mohan said. “A share of $10 is always better than the share of $1.”
Traditional media sources that run videos divide ad revenue with YouTube. Mohan wouldn’t disclose how much of the $30 billion went to those companies. But he did add that independent creators and musicians received a “huge, huge chunk” of the money.