For video content creators, YouTube is often seen as the first and foremost monetization option. It’s perceived as a haven for content owners, filmmakers, and influencers looking for immediate and, eventually, broad exposure.
But YouTube has a nasty secret.
Unless you’re part of a very small A-List of YouTube Superstars, - most of its 96.5% content-creators make less than $12,140 a year.
All of YouTube’s reach simply doesn’t translate into much revenue, which is why YouTube’s “middle class” content-makers and many of its elites are wisely getting onto streaming TV channels on platforms like AmazonFire, AndroidTV and the most successful of them all - Roku.
But first: Some YouTube Monetization Math
For displaying ads with AdSense for content, publishers receive 68% of the revenue from Google, meaning if your video generates $1,000 from AdSense revenue, you will receive $680. However, to generate $1,000 in ad revenue, you’ll need to rake in about 20,000 views if you receive $5 per 1,000 views. That calculation is based on advertisers paying $0.18 on average per view, which comes out to $3 to $5 per 1,000 video views. Do note that these are all estimates as the amount of money YouTube pays depends on a variety of factors, such as:
The number of video views
The number of ad clicks
Ad quality
Video length
Ad blockers
In any case, keeping over 30% of ad revenue is a huge slice, and arguably the main reason why a YouTube gig can be a lucrative side hustle but nothing more. That is - unless you manage to advance into the elite group of YouTube influencers with millions of subscribers. And as you saw earlier, 96.5% of YouTubers never do.
Why CTV is the Answer
That’s the math, whether you like it or not. Personally, I don’t, which is why platforms like HRVST are helping YouTube’s best and brightest content-makers also make revenue on Roku (but more on that later on).
So why is Connected TV (CTV) the new goldmine for influencers? More flexibility for streamers to find what they want to watch, along with ad experiences developed with a user-first approach.. and higher CPMs. As such, the possibilities for quick growth are far greater, and you can end up bringing in the amount of money your content actually deserves.
The truth is, TV now isn’t what it used to be in 2019. As of yet, the lack of live sports and production of new shows means TV viewership is largely driven by streaming channels and digital video, so much so that streaming grew 85% from March 2019 to March 2020. While all media is seeing a surge in usage right now as people remain confined at home, no surge is larger than the one in the streaming world.
So with all that being said, the next question is:
Where to sell your content on CTV?
As TV viewing habits have changed under lockdown (and generally speaking), over-the-top (OTT) streaming platforms have become increasingly important parts of the video landscape. OTT devices like Amazon Fire TV’s and Roku’s ever-expansive hardware lineup (as the two most popular options), along with other major players like Android TV and Apple TV, have become central hubs for all entertainment purposes, particularly when it comes to watching Internet-based TV and replacing expensive cable equipment.
These devices offer a wide array of services and apps, from streaming free channels like Roku Channel to subscription services like Amazon Prime, Netflix, Hulu, and others, to cable and broadcast channels such as HBO Go and ABC/NBC/etc, as well as rent-or-buy channels like Google Play Movies TV and music streaming.
Roku is the #1 platform at the moment, with a total of 39.8 million active accounts (a 37% increase year-over-year) and a record 13.2 billion streaming hours recorded (up from 8.9 billion year-over-year) - all in Q1 2020. To sum up - it’s a well-oiled distribution mechanism that offers key OTT offers like deep targeting and measurement, providing content creators and brands all the necessary tools to become their one-stop-shop for video. Its access to unique insights on viewership habits allows it to leverage data targeting and interactivity through various content programs so that advertising is more impactful and efficient - arguably one of the main reasons for Roku success.
The rise of streaming channel brands
Roku is particularly interesting because it has a myriad of free channels, making it easier for content providers to break into the streaming space while simultaneously focusing on delivering value to consumers.
Scrolling through Roku is like strolling down an endless supermarket aisle. The big brands of streaming TV channels are on the top-shelf and way-up-front - your Netflixes, Amazon Primes, and so on. Then you walk past the old favorites like YouTube, CBS, Fox, while further down the aisle are the newer, smaller brands like CuriosityStream and Mubi, to name a couple. Finally, you reach the long-tail: thousands of small-time channels you've never heard of. They look nice but you're not sure now is the time to invest in watching a new channel.
So where does that leave quality content-makers and influencers on YouTube? A new breed of streaming video channel was born last year: the network power-player.
The largest and most creative of them all being HRVST.
What we’ve done is launch almost 40 different channels, giving them 40x the reach and audience of smalltime channels - and a lot more data with which to test performance. And because HRVST’s channels are so niche and specialist, even “middle-class YouTube Stars” and smaller content makers get the limelight, instead of a filler in the back catalog of a major league single channel.
Final thoughts
If 2019 was a tipping point in allegiance to streaming, 2020 and the incurring pandemic have brought on the full force of change, even if slightly distorting certain trends and predictions. It’s become clear that CTV and Roku, in particular, have become huge business opportunities to increase revenues. Users cutting the cord and moving toward streaming as the sole source for TV is a trend I don’t expect to see stopping any time soon. While other streaming services continue to emerge, Roku’s position as a top OTT streaming platform at the moment makes it all too appealing for YouTube content creators to pass - especially if the idea is to prioritize revenue.
Image credits:
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