Creators working on YouTube have a variety of monetization opportunities available to turn their content into a revenue stream. However, ad revenue remains one of the most significant sources of passive income for YouTubers. YouTube ad revenue is expected to surpass $30 billion in 2025, showing the increasing value of advertising on the platform.
By joining the YouTube Partner Program, creators can start earning from ads displayed on their videos, with earnings varying depending on factors such as niche, audience engagement, retention, and the number of views.
On average, YouTube ad rate is $18 per 1,000 views. However, this number can vary widely depending on factors like content niche, viewer location, and seasonality. In some high paying niches, like Finance or Tech, it can go up to $30 per 1,000 views while in others, such as Vlogs or Entertainment, it can be lower, more close to $5 per 1,000 views.
In this article, we’ll cover everything you need to know about YouTube Ads, how to get them set up on your videos, and strategies to maximize your earnings. Let’s dive into it!
On average a YouTuber can make between $18 for 1,000 views considering just earnings coming from ads. When it comes to making money on ads, you need to focus on your views and ad views.
The difference between them is that views are the amount of views your video gets while ad views Ad views refer to the number of times viewers watch an ad for at least 30 seconds or interact with it, like clicking on it. The more views you have, the more ad views possibilities you have.
With 100,000 views on YouTube you can make from $100 to $2,500 for just one video.
Alexis is a full time YouTuber who shared her revenue experience on YouTube last year. She checked how her channel performed every month and how much money she was able to make just out of ad revenue.
In the month of July, she had a little bit more of 100K Views and she made $1,722.66.
Hitting 1 million views on YouTube is a huge milestone. A YouTuber with a million views can make approximately on average $15,000 from the ads displayed on different videos.
Later on in her video, she shared her total numbers of the whole year. She was ble to have over 2.5M views meaning a total of $32,184.48.
A YouTuber with a billion views can make approximately 2 million dollars on ad revenue only!
Besides views and ad views, when talking about Ad Revenue on YouTube there are 2 key metrics you need to know in order to better understand how ads work and the amount you can make.
YouTube pays creators based on the money brands pay to showcase their products or services on different ads. With AdSense, they connect the ads with your videos and a share of that advertising revenue is going to the creator.
YouTube operates on a revenue-sharing model. Of the total amount paid for an ad, YouTube keeps 45% and gives the youtuber the rest 55%. Remember that the views that count are the ad views.
Let’s say your video gets a million views. Half of these views result in ad views (500,000) and you have an average CPM of $10.
After estimating your Ad Revenue, YouTube makes it cut before giving you your percentage. So you’ll earn a total of $27,500 (55%) while YouTube keeps $22,500 (45%).
Joining the YouTube Partner Program is a mandatory requirement if you want to monetize your content. You can apply to the program on YouTube Studio. To qualify for YouTube's monetization features, your channel must meet the following milestones:
The way creators earn money on YouTube is through ads. How does it work? With AdSense, a Google advertisement program that connects advertisers with your content. The brand or advertiser buys ad placements through AdSense auctions using different bidding strategies. On average, creators earn approximately $0.018 per ad view meaning that every 1,000 ad views they earn $18.
Whenever an ad is displayed on your video that means that a brand pays money to showcase a specific product or service on YouTube. There is an agreement between YouTube and brands in which they determine the amount to pay for 1,000 views. This is where CPM comes along.
CPM, or Cost Per Mille, is a metric used to determine the amount advertisers are willing to pay for 1,000 ad impressions. Average CPM’s on the platform range from $2 - $12.
However, these numbers don’t go along with the range $1 - $5 we mentioned before, and that’s why as a creator you don’t get to keep all the money advertisers pay. And here’s when RPM comes in.
RPM, or Revenue Per Mille, is a metric that tells what the creator earns per 1,000 views after YouTube takes its share. YouTube takes 45% of all revenue generated from ads and the left 55% goes to the creator. RPM is usually about 55% of CPM.
While the average CPM ranges from $2–$12 depending on niche and location, creators only keep 55% of that amount. That’s why average RPMs often range between $1–$5.
If you want to dive deep into these metrics, go read our guide on CPM and RPM: Understanding YouTube’s Ad Revenue Metrics!
YouTube ads are specific videos designed by brands to advertise their content on YouTube. There are several formats and depending on the way your viewers interact with them, the money you can make.
There are several ad types that YouTube places on videos. How much you earn depends on how your viewers interact with each type:
This type of ad is the most common. Skippable Ads can be played before, during or after your video and viewers can skip them after 5 seconds, click on them if they liked something or just keep watching until it is over.
In this scenario, it only counts as views if the viewer watches at least 30 seconds or clicks on it. So a great tip would be to really hook your audience in your video so they keep watching.
These are short ads, typically between 15-20 seconds long, that are played during your videos and viewers can’t skip.
Non Skippable ads tend to have higher CPM, which means brands are willing to pay more because they have full views guaranteed.
Bumper ads are 6 seconds long and appear at the beginning of your video. Viewers can’t skip them so every view counts.
Display ads are banners right along your videos, only on the desktop version.
Overlay ads are banners that appear on the bottom of your video.. Only available on the desktop version.
Mid-Roll Ads play right in the middle of your content. This works really great on 8 minute or longer videos, as you may fit more than just one ad on your video.
The money you can make from ads is strictly related to the way your audience reacts to those ads. In other words, you don’t earn just because an ad was display on your videos, you earn if:
So it is safe to say that advertisers set CPM prices for a number of views, but they are not paying just for those 1,000 views, they must be ad impressions.
Views Vs Ad Impressions
Having a billion views on YouTube is amazing but what really affects your revenue are the ad views.
For example, if your video has 1 billion views but no ads, you won’t be making any money. If your video has a billion views and 30,000 ad views, you’ll be making money from those 30,000 ad views.
If you want to learn how much you can make with that amount of views, go read our article on How Much Does YouTube Pay For A Billion Views!
Understanding your potential earnings from ad revenue is understanding that your RPM is not only going to be determined by the amount of ads YouTube fits on your videos, but also by the way your viewers watch or engage with those ads.
The best paying ads on YouTube are Non-Skippable and Mid Roll ads. This alone tends to have higher CPM and RPM and if you find yourself working in a high paying niche, your earnings can be way bigger.
While the average CPM ranges between $2 - $12 there are some niches like finance or tech where CPM can go up to $30 for 1,000 views. Want to dive deeper? Check out our article on YouTube Most Profitable Niches for a more detailed comparison between CPM and RPM values.
Making money through ads is absolutely worth the effort you need to put in in order to be accepted in the YouTube Partner Program. Whether you're just getting started or already building your channel, ad revenue can be a solid foundation for your long-term income strategy as a YouTuber.
And although there are some other monetization opportunities available on the platform, such as brand partnerships, affiliate marketing and channel memberships that can get you more money, ad revenue remains a strong contender.
Why? Because it’s one of the easiest ways to earn passive income! Once your videos are monetized, they can keep generating revenue over time, even months after you first upload them.
Ad Revenue is a YouTubers great ally because of:
If you are intrigued about other income streams on YouTube, go check our article on How Much Do YouTubers Make for more ideas to turn your creativity into profit!
There are a few things you can work on in order to make the most money out of your content! Here´s a top 5 list of things you can do to maximize your earnings!
Make high-quality videos. This will encourage your viewers to watch them until the end, increasing both your watch time and viewer retention. An engaged audience holds value for advertisers willing to pay for ads on your videos.
YouTube holds in palace strict policies of the use of copyright music, songs or tracks. Whenever the platform detects copyright content in your videos, it can create a claim, interrupt the monetization possibilities for that video and even delete your channel if you ever get to three copyright claims.
So respecting copyright will allow you to monetize your videos. If you want to learn more about this key point, check our article on YouTube Copyright Music!
Do keyword research to identify what is relevant to your audience and use that information to present your video with great titles and descriptions so it will find the right viewers, improving your video's visibility and ranking on YouTube.
Focus on generating longer videos, try to go over 8 minutes long, so you have the possibility to add multiple ad breaks in the same video. This way all the effort put in that video can generate more spaces for ad revenue, making it more rentable.
Ask your audience to like, comment and share your videos. Also, ask them to subscribe to your channel as a way to support your daily work. Higher engagement rates can lead to viewers staying on your videos while the ads are showing.
YouTube Shorts offer another possibility to make money out of ads on the platform. However, Shorts monetization works differently from traditional longer videos. Instead of direct ad revenue per video, YouTube pools all the ad revenue generated from Shorts and distributes it among creators based on their share of total views.
YouTube allocates the revenue to monetize creators based on their share of views in the shorts section. From that share, YouTubers keep 45%, while the remaining portion goes to the platform to cover music copyright fees.
There is a Creator Pool for every country.
Let's break it down with an example! Let’s say you are a creator based in the US and the total ad revenue from Shorts in that country is $100,000. YouTube allocates 5% of eligible views to you as the creator, so you’ll receive 5% of the total revenue in that pool.
From that, you’ll keep 45%, and YouTube retains 55% to cover its share, including music rights.
So, from $100,000 total ad revenue generated by YouTube Shorts in your country, your final share would be $2,250.
Quick note: The actual figures can vary greatly depending on your share of views within the Shorts ecosystem and the advertiser demand in your specific country.
If you are into Shorts, you should check out our article on YouTube Shorts Monetization to fully understand how it works and make the most out of your content!
Not every creator on YouTube makes the same amount of money from ads. There are several factors affecting both your CPM and RPM, hinting at the amount of money you end up making.
Tracking the exact amount a YouTube video earns from Ad Revenue is almost impossible. Here are the key factors that will definitely affect your final earnings:
The niche you are working with is going to determine the brands that are willing to work with you and also the ads that fit your content. The more profitable the niche is, the more expensive ads your video gets.
Below is a table with average CPM of different niches on YouTube with their earnings from a billion views.
Where your viewers are based, their age, gender, etc. plays a big role in how much money you can make through ads. Brands aim to target specific audiences to maximize their awareness and return of investment (ROI).
Typically countries with a good economy have higher CPM’s, allowing youtubers to make more money. This shows how many factors, such as the local economy and the wealth of the audience watching, affect your potential revenue.
Here’s a quick look at how CPM can vary depending on your audience’s location:
Quick note: These are average estimates. CPMs can fluctuate based on niche, seasonality, and advertiser demand.
If your viewers are loyal to your content they’ll probably watch your entire videos with the ads displayed on them. This will get your ad views going up and add up to your final revenue.
YouTube Premium users paid a monthly fee in order to avoid ads. If a significant amount of your community is a YouTube Premium member, the platform is going to share with you a percentage of the membership fee that will add up to your monthly earnings as a way of recognizing your good content.
On average, YouTubers earn about 55% of the revenue from YouTube Premium members who watch their content. This varies depending on the number of YouTube Premium subscribers in a creator’s audience.
If most of your viewers are using any kind of ad-block tool while watching your videos your ad views aren’t going to be shown. This can result in lower CPM and, ultimately, reduced revenue.
CPM varies considering the amount of advertisers wanting the ad space. CPM tends to spike during major shopping events like Black Friday, Cyber Monday, or the holiday season when advertisers increase their budgets for targeting consumers. On these particular dates, brands are willing to pay higher CPM’s making your revenue for 1,000 ad views higher too.
The longer the video, the more ads that can be displayed in it. Videos over 8 minutes allow for multiple ad placements, boosting revenue compared to shorter videos. So as a Pro Tip, find ways to make appealing longer videos to increase your earnings opportunities significantly.
While in most cases sponsorships usually pay more, ads provide steady income over time.
YouTube is a great platform for creators as it offers different ways to make money. While some YouTubers can argue that revenue from ads is not that high sometimes compared to other monetization streams, it does contribute a lot to a channel’s growth.
Making money through ads on YouTube is not only possible but can also work as the key motor behind your channel.
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