How YouTube Advertising Works

A clever and simple way of helping folks understand how YouTube and the creators turn advertiser dollars into revenue:

It’s interesting to think that all of these fancy calculations and algorithms are working in the background as I build out a new YouTube channel myself and experience the business-side of revenue (you can see my Revenue Reports).

If I was a full-time YouTuber (like my brother) then I’d care much, much more about the specifics and how to optimize my own videos for the algorithms, but, I’m not so I’ll just have to casually watch things change and normalize over time.

I do believe, though, that the revenue side of things is completely broken in favor of the creator. I mean, the fact that I can make anything of substance even in the first few months of doing YouTube is crazy. It shouldn’t be that way and it’s inevitable that it’ll normalize.

The question is whether you’ll be on the side of the creators or consumers…


Also published on Medium.