How does YouTube make money? – Patrick Missirian

How does youtube make money if most of the content shared on the platform is free to watch?

– YouTube has a user base of 30 million visitors a day, it doesn’t need to charge money for its services.

– Besides its free videos, YouTube also offers subscription based services such as YouTube Red, YouTube TV and more.

– YouTube offers SERP Advertising which means that brands post advertisements on the video viewing website and pay the site depending on the amount of people who click on the ad.

– YouTube also makes money from embedded advertisements. In this case, advertisements are placed at different points of a video and the advertisers pay YouTube depending on the amount of viewers watch the ad for more than 30 seconds. (Content creators also get a cut of the revenue)

– Although most of the videos on YouTube are free to watch, a lot of big content creators decide to make their content purchasable and end up paying YouTube a cut of the profit.

– Affiliate Earnings also play a part when it comes to earnings. When a video features a brand that is partnered with YouTube, the website advertises the product shown in the video and allows viewers to buy the it through the streaming site. Everytime a client purchases an item through YouTube, the platform gets commission from the product sold.