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In certain cases, YouTube will pay creators a percentage of the advertising revenue for advertisements that are placed within and before or after videos. The approximate share of advertising revenue paid to the creators of monetized videos is reported to be 55%; in 2013, the average creator's income was estimated to be $7.60 per thousand views. [2]
Cost per impression, along with pay-per-click (PPC) and cost per order, is used to assess the cost-effectiveness and profitability of online advertising. [1] Cost per impression is the closest online advertising strategy to those offered in other media such as television, radio or print, which sell advertising based on estimated viewership, listenership, or readership.
In 2012, YouTube's revenue from its ads program was estimated at $3.7 billion. [309] In 2013, it nearly doubled and estimated to hit $5.6 billion according to e-Marketer, [309] [310] while others estimated $4.7 billion. [309] The vast majority of videos on YouTube are free to view and supported by advertising. [64]
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Pay-per-click (PPC) has an advantage over cost-per-impression in that it conveys information about how effective the advertising was. Clicks are a way to measure attention and interest. If the main purpose of an ad is to generate a click, or more specifically drive traffic to a destination, then pay-per-click is the preferred metric.
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They find, assuming the cost per 1000 ad impressions (CPM) is $1, that: The marginal cost of a brand-related search resulting from ads is $15.65 per search but is only $1.69 per search from a targeted campaign. The marginal cost of a click is 72 cents, but only 16 cents from a targeted campaign.